Providing STO Diversiﬁcation & Reducing Risk, Whilst Providing STO Top Returns
Sciath believes BC cryptocurrencies will change the way we fund productivity in all segments of the global economy. However, similar to the Internet adoption life cycle, Sciath expects it will take several years and multiple market corrections while the BC technology and crypto ecosystem builds, matures and standardizes (comparable to the post 2001 crash – the Internet as we now know it took some time and several corrections and failed enterprises before Google, Amazon, Facebook, etc. and their business models emerged and took hold to create real and sustainable companies). Since the ICO explosion began in 2017, ~800 ICOs have raised ~$20B and according to Ernst & Young, of the 141 largest 2017 ICOs, 86% are currently trading below their listing prices, and 30% have lost almost all of their value. Cryptocurrency investors are already experiencing these micro boom/bust cycles and ﬁnding it diﬀicult to both pick individual winners and determine their market adoption risk cycles (today’s investment decisions are predominantly based upon perceived “good ideas” rather than actual market and performance data). Sciath seeks to help investors mitigate these risks by:
- providing a hybrid traditional/tokenized fund based upon the equity/revenue values of a portfolio of mature, vertically diversiﬁed companies/projects,
- leveraging a proprietary end-to-end technology and tokenization PaaS to standardize and bring economies of scale to the Fund’s investment holdings,
- and applying proven traditional VC/PE fund structure, methodologies & GP/LP economic interest alignment economic terms with the additional ﬂexibility of “tokenization” allowing investors to choose the model that ﬁts their investment allocation strategies & liquidity requirements. With these characteristics, Sciath is positioned to deliver a top quartile return proﬁle to its investors. For more information on our hybrid fund structures & terms, please contact us.
Hybrid Token Investment Model
All Sciath Funds have a tokenized Limited Partner structure incorporated in Singapore, providing liquidity to investors via digitized securities, a signiﬁcant advantage over traditional VC Funds that inherently limit exit events while the fund is operating. Sciath Funds issue VC tokens with pro-rata limited partner rights to the Fund’s holdings and are typically tokenized as follows:
- Sciath VC tokens are issued at a ﬂexible valuation based upon the total Fund size and would hold limited partner rights to Fund holdings
- Once Investors hold Sciath VC tokens, they are allowed to buy/sell/trade the token with some limitations.
- Investors can only trade/sell Sciath VC tokens to “Sciath Approved” buyers, who must apply for and obtain approval.
- Buyers must be approved via KYC/AML and by Sciath