Venture Capital Company From Pennsylvania To Tokenize An Investment Fund
The Ben Franklin Technology Partners of Southeastern Pennsylvania has recently decided to tokenize one of its funds. The fund that will be tokenized is the Global Opportunity Philadelphia Fund, also known as GO Philly Fund, which has around $15 million USD committed to it.
While the Ben Franklin fund has a more restricted range of investments since it receives public money from the Commonwealth of Pennsylvania and it has to invest in the area, GO Philly is freer to do international investments, despite being focused on startups of the region.
Now, the fund will start a partnership with the Securitize platform in order to raise more $35 million USD selling GO Philly Fund tokens to investors. Only accredited investors from the United States will be accepted during the sale.
The CEO of Securitize, Carlos Domingo, has talked to the crypto media and affirmed that this fund will be a real trailblazer and that the company is proud to partner with the company to provide the technology needed to fully tokenize the new asset.
According to the CEO, the GO Philly tokens will be available for $0.50 USD each and they will be based on the Ethereum blockchain. People willing to buy tokens can do it with USD, BTC or ETH. However, they need to buy at least $250,000 USD in order to participate in these sales.
GO Philly is a $50 million USD fund that was created via a partnership with EPAM. During the launch, the fund raised $15 million USD, a third from Ben Franklin, a third from EPAM and the rest from several other investments funds. Now, the rest of the shares of the company will be sold during the token offering.
Big companies will be treated specially during the sale. First, these giants will be called and they can buy as much as they want from the fund. The leftovers will be offered globally to several medium-tier investors.
According to the company, GO Philly will sell about 100 million tokens before the company can finally end the sale. Each token will represent a limited partnership contract and will be fully regulated by the laws of the United States, which is why only accredited investors can participate in the sale this time.
Tokens Will Be Just Like Equities
In fact, buying these digital tokens will be not so different from buying equities in a company because the investors will have a part of their money back as the profit. First, the buyers are supporting the growth of the company, then, they will receive this money back to their pockets.
According to the fund, the main advantage of using tokens over equities is that the investors can get out easily if they want to. It is considerably easier to sell a token because there are several secondary markets for them and the company will create its own secondary trading platform.
The team has opted for not using smart contracts this time. According to them, traditional banks will send money to the accounts of the token holders. It was not discussed why not use the technology, though. Perhaps because some of the investors interested in the tokens will be more traditional.
All the cryptos acquired during the sale will be sold for cash immediately, too, as the team is not eager to see the value of its assets going down, a problem from which several companies suffered last year when the bear market began.
About the Ben Franklin Fund and Securitize
Ben Franklin is a major investment company in its area. The company has made over $8.1 million USD of investment in 51 startup companies back in 2018 and it has a portfolio that includes over 227 companies, totaling $354 million USD in assets.
Securitize, which was recently backed by Coinbase, is a company focused on the tokenization of securities. It has already worked for companies like Coinbase Custody, CBlock Capital, OpenFinance and others.