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Cryptocurrencies

SPiCE VC provides immediate liquidity for its investors using blockchain

Thursday 28 September 2017 | 08:45 AM CET

SPiCE VC, a venture capital company, has been using blockchain technology to remove an impediment for investors in VC funds – the 7-10 years illiquidity period.

The venture capital company has rolled out the first ICO (Initial Coin Offering) for a VC fund that can accept funds from pre-qualified investors (per country regulations, and under Reg D Rule 506(c) in the US) and offers immediate liquidity.

Over the last few years, it has become easier for new startups to raise seed money from hundreds of angels and incubators. The challenges arise when arriving to the series A rounds, which have grown in size, and so have the milestones that startups must achieve to secure them. SPiCE VC will focus on companies in that gap, either pre-series-A or pre-ICO, because once a company crosses the chasm, it achieves the fastest growth in valuation, which SPiCE investors may benefit from via its liquidity.

SPiCE uses the Ethereum blockchain to host their SPiCE token, which acts as a digital security, assuring that every investor, while holding the token, gets their share of the exits when they occur. The token can also be used as a tradable asset, making SPiCE both asset-backed, and liquid, and rightfully coining itself a Liquid VC. The SPiCE token ICO is scheduled for late November 2017.

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