Tokenization of Venture Capital: The Future of Investing and an Opportunity for Reinvention

by | Dec 22, 2020 | Venture Capital | 0 comments

Investors are on the hunt for new alternative investment opportunities in the age of revolutionary innovations and changing markets. Better still, most of them have decided to search beyond the traditionally safe precious metals. They are flocking to new investment channels, such as tokenized venture capital. This article discusses why tokenized venture capital is an excellent new asset class to consider in your investment portfolio.  

Overview of the Venture Capital Market

The venture capital market is an evolving asset class. In 2018, the global venture capital investment reached $254 billion, according to a report from KPMG. According to McKinsey Global Private Markets Review, if we include “dry powder” and PE fund investments, the VC market’s total value hits $1 trillion. 

VC has excellent potential for investors. Approximately one in ten VC deals bring returns of more than 5x to the investors, while “moonshots” can generate 50-70x invested capital. Unlike most assets whose prices are radically affected by various economic factors, VC as an asset class can provide a stability buffer because of its diversified portfolio. For example, if one startup fails to succeed, the entire VC will not collapse. Portfolio diversification provides an exclusive opportunity to mitigate risks and hedge against economic uncertainties.  

A Regulated Marketplace for Venture Capital

Since VC is a vital investment channel that can withstand significant market turbulences, it will be right to say that tokenized VC portfolios are based on a secure and trustworthy asset. The Tokenizer platform has built the world’s first regulated marketplace to enable $1 trillion of extra liquidity to be injected into the venture capital sector. We are on a mission to offer venture capital access as an asset class to a broader pool of investors. 

We will tokenize only trusted funds that have passed the due diligence process. This is another security measure that ensures assets are grounded in valuable tradable assets. Besides that, tokenization of VC portfolios takes place on a blockchain network, which provides an extra layer of security for investors who value their investments’ safety. The immutable nature of blockchain, our custodial support, and our stringent due diligence process ensure that assets do not evaporate once they are tokenized. 

Tokenization of venture capital also lowers the entry barrier through fractional ownership of assets. Though becoming a limited partner at a venture capital firm demands writing a multi-million-dollar check, buying a tokenized VC asset is readily available and accessible to investors from any part of the world. 

Before you decide to invest in a tokenized venture capital portfolio, consider the upside: outsizes returns, investment security through diversification, safety, and traceability of investments on the blockchain. More importantly, tokenized venture capital is a good chance for you to participate in the next innovative tech company- the next Uber, Facebook, or Apple.   

Tokenizer Blockchain Banking Platform

Tokenizer is a blockchain investment banking system that champions accessible, transparent, and safe financial services. We believe that everyone deserves equal access to investment and fundraising opportunities. That is why we are democratizing access to capital for investors and fundraisers by making investing and fundraising efficient, safe, and accessible to everyone.

Are you in need of raising funds or investing in security tokens? Apply to raise funds through Tokenizer by filling this application form. If you want to invest in security tokens, sign up for a Tokenizer Investment Account today, and if you want to liquidate and trade-in Asset-Backed Tokens, we have a decentralized exchange designed for you! 

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