For discussion purposes only - subject to changes
Last update :15/05/2021
Value Creation - Alternative Ltd. (VC-A) and Fiduscorp Ltd. have joined forces to create a comprehensive fundraising ecosystem to harness the power of tokenisation. The ecosystem, dubbed VC-A - Fiduscorp's Fundraising Platform, will accelerate the fundraising process, reduce set up time and give access a larger potential market of investors; meanwhile, it will also help contain our clients' cost.
VC-A brings its network of 800+ Agents, 200+ Subject Matter Experts, 5 000+ Investors and 35 000+ contacts, its Strategy Consulting Expertise and Business Know-How whereas Fiduscorp brings its 30 years expertise in the Regulated Framework and Funds Industry.
The platform should be of interest to established or prospective Fund Managers, Private Equities, Family Offices, Project Developers and Corporates looking to raise funding. Depending on the fund's strategy, we reckon that the total amount sought should be in excess of €5 million and the sweet spot around €20 million.
VC-A Fiduscorp's Platform Overview
The following diagram maps the players involved in fundraising through tokenisation. The names of our technology and compliance partners shall be disclosed only under a non-disclosure agreement to previously vetted potential clients.
Our investment vehicles and Security Token Offerings (STOs) will be regulated by the Malta Financial Services Authorities (MFSA).
We have chosen Malta because it is the most advanced jurisdiction in terms of blockchain as-well-as "security tokens" regulations. Click here to view Malta's Consultation Paper on STOs. Needless to say, Malta also offers a business friendly tax regime.
Investment Vehicle Organisational Structure
The overarching structure of the Platform's Investment Vehicle will be an open-ended collective investment scheme, known as a SICAV. Each client will get a separated and seggregated fund in the SICAV.
Funds shall be either professional investment funds (PIFs) or alternative investment funds (AIFs) depending on the total amount of money sought and the type of investors. PIFs are cheaper, easier to manage and generally suited for funds valued up to €100 million and investment tickets in excess of €100k. AIFs are usually used for investments in excess of €100 million when active marketing is deployed
Setting up a PIF costs around €30k, and another circa €40k to administer it for one year. Tokenisation and marketing expenses come on top. Minimum paid-in capital is €125k and needs to be approved by the regulator.
Fund creation value-chain
The following diagram depicts the steps required to raise funding through tokenisation.
Not all projects are fit for purpose. The Platform shall run a high-level due-diligence on the client's request for funding before taking the project forward. It is in nobody's interest to issue tokens if there is no market out there to buy them.
Due diligence and on-boarding
Although blockchain and tokenisation are new technology tools, the basic fundamentals of fundraising still apply. Without any anchor investor, the odds of success are slim. Do not contact us if you don't have at least ready-to-go investors willing to cover the setup and marketing cost.
We can be flexible on the jurisdiction of the fund. In fact, the project may require several seeders in different geographies. However, Malta is our preferred location.
We shall prepare all the required documents and upload them onto the Tokenisation Platform. We are not providers of the technology but have partnering agreements with market leaders. Given that the market is still in its infancy, it is our strategy to remain independent from the providers and always partner with those who offer best-of-breed technologies.
The structure will have at least three Directors and an Investment Committee of three members.
We can manage the fund on behalf of the client, let him manage it, or manage it jointly. Getting the licence shall take from 2 to 6 months depending on the profile of the parties involved and the complexity.
Our interest is to get involved in the project. For attractive projects, we will waive some of the management fees in exchange for a carry (e.g. a stake of the fund).
Enabling a secondary market is a compelling selling argument to entice investors.
Why should you hire our services?
First of all, if you have read - and understood - everything up to here, congratulation!
Give yourself a little pat on the back for a job well done.
The followings and some of the reasons why you should get in touch with us:
We tackle tokenisation from a financial mindset, not a technological one.
Our Directors bring close to 100 years of experience in:
- Fund management
- Information technology
- Management consulting.
Value Creation - Alternative will give you access to:
- More than 200 Subject Matter Experts
- More than 1 000 Members
- More than 5 000 Investors
- More than 45 000 Contacts.
Our SICAV structure will contain your cost:
- We will waive up to €50k of our management fees to the first investor who will help us set the SICAV up
- Setting up new PIFs/AIFs will be cheaper and faster under the umbrella of our SICAV than if they are created standing alone.
- Each fund will benefit from the marketing efforts of all the others
- The larger the SICAV, the better the exposure of each individual fund to reach out for potential Token Investors.
Our structure is small and flexible, but our reach is very large.
We can hit the ground running.