SPiCE VC is launching a fully-regulated venture capital company for the blockchain industry. Find out how it works today in our review.
What Is SPiCE VC?
SPiCE VC, found online at SpiceVC.com, aims to disrupt the venture capital industry using blockchain technology.
The company aims to solve a crucial problem in the venture capital world: the 7 to 10 years liquidity period. They aim to “bridge the gap” between angel investors and series A funding rounds – which is a gap many startups struggle to cross.
Earlier this week, SPiCE announced the launch of their first ICO. That ICO is for their VC fund. The VC fund can accept investments from pre-qualified investors (based on country-specific regulations) while offering immediate liquidity in a market that, up to this point, has been completely illiquid.
Obviously, blockchain technology has already disrupted the venture capital industry. ICOs have changed VC funding forever. Blockchain technology, however, hasn’t yet changed the way VCs themselves raise capital. Today, many private investors are blocked from participating in the most exciting (and riskiest) startups, while institutional investors are forced to limit the amount they invest due to the 7 to 10 year lockup period.
That’s where SPiCE VC sees an opportunity for digital tokens to change the industry. The SPiCE token ICO is scheduled for late November.
How Does SPiCE VC Work?
SPiCE VC uses the Ethereum blockchain to host its SPiCE token. The token acts as a digital security. As a security, the digital token ensures that every investor gets their share of the exits when they occur.
These digital tokens are tradeable assets. They’re asset-backed and liquid tokens tradeable on an open exchange.
SPiCE VC is seeking to raise funds through its November ICO. Funds raised from the ICO will be used to fill a notable gap in the tech ecosystem: over the last few years, it has become easier for new startups to raise seed money from hundreds of angels and incubators. The challenges occur when the startups reach the series A rounds. These rounds have grown in size, and so have the milestones startups must achieve to secure each round.
With that in mind, SPiCE VC will focus on companies in that gap – between an angel investing round the series A round. These companies are either in a pre-series A or pre-ICO state. Once a company crosses the chasm, it achieves the fastest growth in valuation. That’s where SPiCE VC sees their opportunity and their niche.
Benefits Of SPiCE VC
Some of the features and benefits of SPiCE VC include:
- Immediate liquidity
- Inclusive marketplace where venture capital is opened to pre-qualified investors
- Investments in blockchain equity rounds and ICOs
- Robust investment process and due diligence by a team of experienced entrepreneurs
- Diversification outside cryptocurrency into equity investments across all types of tech sectors
- Backing tokens with assets, and shielding them from market volatility
Who’s Behind SPiCE VC?
SPiCE VC was founded by Carlos Domingo (Senior Executive), Tal Elyashiv (Senior Executive), and Ami Ben David (Serial Entrepreneur).
SPiCE has also partnered with the Aragon Network to help maintain governance and compliance across the ecosystem.
The company aims to build on the work of Brock Pierce, who launched a similar venture capital fund earlier this year for Blockchain Capital. That fund was called Blockchain Capital III, and it was a combination of a traditional limited partnership and an Ethereum-based digital token.
The SPiCE VC ICO
The SPiCE VC ICO is taking place in late November. More information about the ICO will be released as we get closer to the launch date.
As mentioned above, SPiCE tokens (sold during the ICO) will play a crucial role in the ecosystem. The tokens are expected to work as securities. They represent shares in the company, and investors who hold SPiCE tokens can profit from each startup’s exit.
SPiCE VC Conclusion
SPiCE VC is a venture capital project that aims to fill a crucial gap in the tech investment industry. Today, it’s relatively easy for startups to attract hundreds of angel investors. However, these startups often struggle to “bridge the gap” between angel investments and series A rounds. That’s where SPiCE VC sees an opportunity. Using digital tokens (SPiCE tokens), the company allows verified investors to participate in exciting startups. As a SPiCE token holder, you receive a cut of each startup once they exit.
To learn more about SPiCE VC and how the platform plans to change the world of venture capital funding, visit online today at SPiCEVC.com. The company is preparing for its ICO in late November.