The Tokenization of Venture Debt Fund

The Tokenization of Venture Debt Fund

In the world of massive data flow and the emergence of blockchain technology, the securities trading market is re-shaping like never before. Nobody could have imagined till 2010 that some technology called blockchain will revolutionize the whole world and make trading of cryptocurrencies easier. Some of the private exchanges that trade crypto are now larger than some countries’ national stock exchanges. The liquidity is impressive due to the massive participation of retail investors and the comfort it provides.

Blockchain technology existed way before Bitcoin came into the picture, but Bitcoin made blockchain famous. The massive surge in the price of Bitcoin came with increased adoption and involvement of the larger financial institutions, which had the power of keeping the markets liquid with their order flows. The retail market adopted the technology before large financial institutions could. That is the only reason that the world has more crypto millionaires than stock exchange millionaires.

EGW Capital, the leading blockchain investment bank, focuses on tokenizing products and services available in the country’s limited boundaries, which hold tremendous value but largely remain illiquid because the investors are programmed to trade those assets in a certain way. For example, a significant investment worth millions of dollars and is technically illiquid for its owner cannot be liquidated in emergencies. The risk is concentrated on a few or a single holder of the asset. EGW Capital is now targeting to launch a venture-debt fund of fund. The EGW Capital-owned fund will invest in other established venture debt funds and facilitate easier investing into the asset class.

EGW Capital will focus on the Indian markets, and the fund is targeting to raise the US $100 million. It may have its first close at the US $30 million to immediately jump into the action and continue remaining fundraising. The bankers will underwrite the whole fund in Hong Kong and New York, and the company claims that most of the work on that front is already completed.

The fund will be called “Atilus Venture Debt Fund of Fund” and listed on the crypto exchange. The trading symbol will be ATI. The fund will remain liquid 24×7, and anybody from anywhere in the world can invest by investing in fiat or cryptocurrencies like Bitcoin and Ethereum.

What is Venture Debt Fund?
As it is sounds, a venture-debt fund focuses on the debt side of investing in an emerging company. The idea of a venture-debt fund is not to gain equity in the business but to invest for the regular flow of interest income. The venture debt fund usually provides funds for working capital needs, asset acquisition, and other short-term capital needs, ensuring constant revenue generation. In the rarest of cases, venture debt is converted into equity, an excellent income source for investors who do not target equity investing or are simply diversifying their investment portfolio.


How will tokenized Venture Debt Fund of Fund will help?
In this case, the whole EGW Capital’s fund of fund will be tokenized, and the tokens will be sold to the investors. The investor’s money will be invested into existing established funds. EGW Capital will not manage the investment strategy but will execute the technical side and the trading strategy of the fund’s tokenized units or shares. 

  • The tokenized venture debt fund of fund will charge zero management fees for the first two years and 1 and 10% at the later stage.
  • Instead of investing in a single fund, an investor can take multiple funds positions by investing in an ATI token.
  • The fund will ensure liquidity. Hence the investor can enter or exit a position with ease.


How much can a debt fund earn?
A debt fund can earn 16-21% per annum, depending on the economic situation. In the case of EGW Capital, India is on the path of revival post lockdown. However, the threat of lockdown is still looming on the people but is expected to be less crippling than before as it will be a second encounter of the people if so, the lockdown happens again.

EGW Capital’s Possible Portfolio:

  • LetsVenture Fund
  • Alteria Capital
  • Trifecta Capital
  • Hercules Capital
  • Lighter Capital

EGW Capital’s Future Plans

  • Launching of EGW tokens presale
  • Launching EGW tokens ICO
  • Building liquidity pool on LuaSwap
  • Proposing to list on WazirX exchange followed by few other retail exchange listings


Topics #blockchain technology #Tokenization #Venture Debt Fund

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