CoVenture is a company that seeks to bridge technology and finance. The company invests in pre-seed venture capital and then creates software for the companies in which they invest in. They also manage direct lending funds that offer debt capital to alternative lending platforms.
As a result, they are able to finance the loans that they originate. Additionally, they create digital asset funds for IRAs, individuals, and institutions so that they can have an easy time accessing cryptocurrencies.
The Vision Of CoVenture According To Ali Hamed
Ali Hamed, who is the co-founder and general partner at CoVenture, describes this company as a new type of venture firm. He made this statement as he announced the company had raised over $3 million in funding.
The money raised by CoVenture does not go to startups. Most of it is used to fund operations at the company. The company is based in Lahore, Pakistan and it employs about 55 developers and designers. It offers up their services to startups, who in return give them equity. According to Ali, one of the biggest limiting factors in New York is engineers.
According to Ali, startups should not be doing all the complex things themselves. For one, if you do not have any technical skills, it can be quite confusing. On the other hand, if you go for a co-founder with the right technical skills, he or she might end up demanding a huge chunk of the equity.
Mr. Hamed continues to say that, CoVenture only works with tech-enabled companies. In short, the company is not looking to invest in complex tech companies. Rather, it works for companies that need technology to make breakthroughs in whatever field they are. The CEO of the company will still be head of the product, but they will teach him or her how to handle it smoothly.
The funding it received back in 2015 went mostly to fund its operations. Investors in the company included institutions and people such as Bob Adelson, and Great Oaks Venture Capital. Although most of the money will go into operations, it will give the company a ‘bridge’ while they source for more funding.
The company also provides help to emerging lending companies that focus on using technology to open new credit markets, come up with new products, or re-invent existing products.
CoVenture believes that those businesses, which seek to introduce products in the credit market, have the ability to build the most sustainable business model. Their heritage as a venture firm makes it easy for them to understand young lending companies and allows them to provide capital for the first loan made.
CoVenture Activities In The Virtual Currency Sphere
The company has its own index, which keeps track of 15 virtual currencies. They are weighted by their market cap and are rebalanced about every two weeks. They believe that this is the most cost-efficient way to get exposure to crypto coins. Experts in the financial and crypto coin sector design the processes they use.