PRESS RELEASE: Deep Technology Venture Firm Launches COSIMO X Tokenized VC FundSeptember 7, 2018
Global venture capital firm COSIMO Ventures today launched its first tokenized VC fund COSIMO X, opening the VC market to an entirely new class of investors who can now take advantage of high growth, deep tech projects at the forefront of innovation. A tokenized fund also means higher liquidity; while most traditional VC funds have a vesting period of seven to ten years, COSIMO X token holders can move freely in or out of positions in the fund.
Key takeaways from the announcement include:
Focused on early stage deep tech companies, COSIMO X focuses its investments on blockchain technology, artificial intelligence, AR/VR, IoT, and cybersecurity.
COSIMO X will accept a minimum investment of $250,000 for accredited investors in the US and $10,000 for non-US investors, while traditional VC funds require a minimum investment of $500,000 or more.
The fund’s tokenized model will issue tokens backed by a portfolio of deep tech companies.
Fund Offers Increased Liquidity & Access to Up-And-Coming Pre-Seed & Pre-ICO Projects in Blockchain, AI, AR/VR, Cybersecurity and IoT
Boston, MA — September 6, 2018 — COSIMO Ventures, a leading global venture capital (VC) firm, announced the launch of COSIMO X: an evergreen, tokenized VC fund focusing on early stage deep tech companies with a particular concentration on blockchain technology, spanning industries such as artificial intelligence, AR/VR, IoT, and cybersecurity. COSIMO X is structured to provide enhanced liquidity for investors along with increased access to the VC asset class and will help deep tech projects secure the funding they need to launch a successful ICO or achieve Series A funding.
Ciarán Hynes, Managing Partner of COSIMO Ventures, said of the fund: “The VC investment model has remained stagnant over many decades and has been slow to adapt to new funding structures. Investors — especially high net worth investors and crypto holders — are looking for new ways to diversify their token-based portfolios. The tokenized VC model will allow for liquidity that has been absent from traditional VC funds until now. The COSIMO team has been at the forefront of value creation for early stage companies over the past 25 years and has developed a process that we believe will create value for our investors and portfolio companies. We believe that blockchain is catalyzing a huge change in both the VC model and landscape and we could not be more excited to provide our investors with this game-changing offering.”
COSIMO X is disrupting the traditional venture capital investment model by issuing investors COSIMO tokens, which represent an indirect economic interest in the fund and which will be backed by investments in deep tech portfolio companies. While traditional VC funds have a vesting horizon of seven to ten years, COSIMO token holders can move more freely in or out of positions in the fund in the open market than they otherwise might with traditional VC investments. COSIMO X’s tokenized model encourages institutional investors to invest both company and venture fund tokens due to the shorter time horizon on investments. Additionally, while traditional VC funds typically require a minimum investment of $500,000 or more, COSIMO X will accept a minimum investment of $250,000 for qualifying investors in the United States and $10,000 for qualifying investors outside of the United States, providing investors increased access to the VC asset class.
In addition to challenges that investors face, there is a lack of funding and operational assistance available for early stage companies navigating the deep tech space. With decades of entrepreneurial and investing experience and using the team’s proprietary, “X-Scale Value Creation Process,” the team at COSIMO X will guide portfolio companies and offer operational support to steer them toward successful ICOs and Series A funding rounds.
Rob Frasca, Managing Partner of COSIMO Ventures, said: “There is a clear lack of funding options and guidance available to early stage companies as they navigate the complex deep tech landscape. We look forward to collaborating closely with our portfolio companies to structure their coin offering processes and follow-on funding rounds and to help ensure they have the support necessary for long-term success.”
COSIMO Ventures’ sourcing engine is fueled by over 100 deal flow partners in the U.S. and Europe. In addition to its non-U.S. investors, COSIMO X will be available to 99 accredited U.S. investors. Please visit (cosimox.com) for more information.
About COSIMO X
COSIMO X is a leading evergreen tokenized venture capital fund focusing on early stage companies in deep tech industries, such as blockchain, artificial intelligence, AR/VR, IoT and cybersecurity. COSIMO X is disrupting the traditional venture capital investment model and believes that blockchain is the catalyst for the major shifts happening in VC landscape. By issuing investors COSIMO Tokens backed by investments in COSIMO’s portfolio companies, COSIMO X empowers both investors and portfolio companies with increased liquidity, reducing the investment time horizon, increased access to the asset class, and increased funding for high quality, early stage companies.
To learn more, visit http://cosimoventures.com/.