A venture capital (VC) company also known as COSIMO Ventures declared the launch the project COSIMO X, which is an evergreen tokenized VC fund which will concentrate on the early-stage tech firms with much emphasis being put on blockchain technology. The firm will impact a number of industries such as IoT, artificial intelligence, AR/VR, as well as cybersecurity.
The project will issue investors with COSIMO tokens. This exemplifies a subsidiary fiscal interest in the endowment. The project will also be supported by investments in strong tech assortment firms. The fund is designed in such a way that it will offer improved liquescence for those who decide to invest in the project.
Increased Access To Funds
This is in addition to increased access to the VC asset class. Furthermore, deep tech ventures will be assisted to have access to funds which they require in order to launch efficacious ICOs or accomplish a successions of financing.
According to Ciaran Hynes, the Managing Partner of COSIMO Ventures, the firm’s outlay model has stagnated over the past couple of decades, leading to sluggishness when it comes to embracing innovative funding structures. In many ways, investors across the world, and more so the high net worth investors, are seeking for innovative ways of diversifying their virtual asset portfolios.
In this regard, the firm has come up with the tokenized VC model which will permit the liquescence which apparently has been missing especially from conventional VC funds. In the recent past, the COSIMO team has been actively involved in value creation for firms which are in their early stages.
Over the past twenty five years, COSIMO has developed a process through which it will create value for investors as well as portfolio companies. Hynes asserts that blockchain is a key catalyst which has brought about significant changes in both the VC model as well as the landscape. Consequently, the firm is thrilled at offering investors with groundbreaking projects.
Issuing Security Tokens
In as much as the conventional VC funds possess the vesting horizon of about 7 to 10 years, the firm’s token holders are able to move independently in or out of positions in the fund. According to the project’s model, institutional investors are encouraged to invest in both company and venture fund tokens. This is mainly because of the short period prospects on the funds.
While most conventional VC fund demand the least possible investment of half a million dollars, COSIMO X will accept at least $250,000. This will be accepted from investors who qualify in the US. Others who qualify from other nations will be charged $10,000, thus offering them improved admission to VC property class.