FinShi Capital is a venture fund that lets you make money by investing in blockchain and fintech startups. Here’s our FinShi Capital review.
What is FinShi Capital?
FinShi Capital is a venture fund that launched its crowdfunding initiative on June 15. The fund is managed by a team of professionals from the Capinvest 21 fund. Since 2007, that team has “accumulated extensive experience in investments, technical and financial analyses and also in managing assets” explains the FinShi Capital website.
The company claims to earn more than 120% per year on their venture investments. The company specifically claims to provide you with 120% per year income growth, and they plan on increasing their returns to 520% per year.
By taking part in the crowdsale, you can take advantage of the rapidly-growing world of fintech and blockchain startups without actually being a VC investor. In fact, anyone can invest with as little as $1.
Overall, FinShi Capital claims to be the first venture fund formed on blockchain technology.
How Does FinShi Capital Work?
Step 1) You invest in FinShi Capital
Step 2) The fund selects the best projects and buys, based on their investment knowledge and experience. The fund buys shares in these projects. Right now, the company is reviewing 30 projects, and no fewer than 15 projects will be invested in at any one time.
Step 3) FinShi Capital helps its teams grow exponentially, increasing their revenue and value.
Step 4) “When our portfolio projects grow to be huge and extensive companies, we sell our shares and earn way more money than we invested in the first place.”
Step 5) After each startup sale, the fund gives you all your money back along with your profit
Basically, FinShi Capital works just like a normal VC investor works. The main difference, of course, is that you don’t need the funding of a VC investor. Typically, you need about $500,000 to begin participating in the VC markets. With FinShi Capital, you can participate for as little as $1.
You can invest in FinShi Capital starting on June 15. That’s when the company’s pre-ICO begins. Your token gives you a stake in FinShi Capital’s invested projects.
The full ICO will be launched in July. The company has set three milestones for its ICO: $30 million USD, $50 million, or $100 million.
The company hasn’t yet published its whitepaper – which is worrying when the pre-ICO and ICO are already underway – or close to underway. The whitepaper link on the official website simply links to the company’s financial plan, although the whitepaper is listed as coming soon.
FinShi Capital Fee Structure
Of the amount raised from the ICO, the company will take 10% as a management fee, 10% for marketing, and 5% for its reserve fund (including advisors and a bounty program). The remaining 75% will be used for investments.
Since FinShi Capital hasn’t released its whitepaper, we don’t have further information about the company’s fees – if any (beyond the fees listed above).
Who’s Behind FinShi Capital?
FinShi Capital was founded by the team behind the Capinvest 21 fund and Asia LP Group. Since 2007, that team claims to have earned an average of 120% income per year.
Key members of the team include Andrey Orlov (Managing Partner), Vyacheslav Sorokin (Partner), and Tim Lee (Advisor). It appears Tim Lee may be a placeholder name, as his profile is accompanied with a stock image of a businessman and a broken link to a LinkedIn page.
There are some weird issues with the FinShi Capital website (aside from the random stock images of businesspeople claiming to be members of the team). The company claims that it’s been featured on numerous media outlets – although links to the “full articles” published by those media outlets are broken.
The only media attention we could find about FinShi Capital was in the form of this press release on Coinspeaker.com.
In any case, FinShi Capital lists its headquarters as Suntec Tower in Singapore. You can contact the company by email at [email protected]
FinShi Capital Conclusion
FinShi Capital makes numerous claims about its 120% return on investment. However, the company repeatedly emphasizes that it makes “no guarantees” in the world of venture investments. You can invest in the company starting on June 15, when the FinShi Capital pre-ICO will be launched. You purchase tokens that represent a share of the company. Then, the company invests in blockchain technology projects and startups, helps those companies grow, and sells shares once the company gets huge.
Basically, FinShi Capital is proposed as a way for small, individual investors to participate in venture capital funding projects – something you typically need at least $500,000 for. With FinShi Capital, you can invest for as little as $1.
Ultimately, there’s an overall lack of information on the FinShi Capital website that makes us a little suspicious of the company – especially since the company has bragged about 520% returns numerous times. Considering how close to the ICO we are, we expected to see at least a whitepaper. All we have is a basic financial plan.
Nevertheless, FinShi Capital may be a legitimate way for you to receive VC fund-like returns. Stay tuned for more information as the fund continues to roll out.