CROWDSTART CAPITAL

MISSION

Crowdstart Capital is a digital liquid venture fund looking to invest in startups related to blockchain technology.  Funds will be sourced through a sale of tradable tokens, adding unprecedented liquidity and availability to venture funding.

The three purposes of Crowdstart Capital are:

  1. To invest in a relatively unexplored niche-market based on decades of experience in business, blockchain technology and investment.
  2. To open up investment opportunities in what is commonly known as venture funding to a larger crowd.
  3. To take a leading role in the encouragement of innovation and adoption of blockchain technology (more here) through investment, mentoring and application promotion.

The essentials for a token holder

Any potential investor in Crowdstart Capital tokens should be aware of the absolute risk of losing the entire investment amount. There will be no guarantees of any return on investment in case of failure. Additionally, no guarantees can be made that tokens will be traded at above initial purchase price.

  • Crowdstart Capital will put tokens up for sale on one or more cryptocurrency exchanges. The tokens will represent participation in the fund and will be openly tradable after the sale has ended.
  • 2,500,000,000 CSC tokens at $0.01 per token is the maximum amount of tokens to be sold at the initial coin offering to take place.
  • Possession of tokens will provide exposure to a previously exclusive investment market.
  • In case of a successful exit, the possibility of a repurchasing exists, allowing token holders to sell back their tokens to Crowdstart Capital.
  • Any repurchased tokens will be taken out of the market, increasing the relative economic interest in the still active tokens.

PRELIMINARY CROWDSTART CAPITAL TERMS

Investment Strategy

Crowdstart Capital Fund I will be the first fund managed by Crowdstart Capital, CSC. The focus of this fund will be on the best blockchain technologies in industries beyond finance, mainly focused on: manufacturing, insurance, energy, automotive and health.

Beside the above mentioned fields of investment, CSC is dedicated to invest in blockchain-related innovation at its earliest stages, where we can create a manageable and efficient investment pace, and where we believe we make the most valuable impact by matching the startup’s abilities with the potential buyer’s needs. We distinguish exceptional teams in terms of technological mastery, domain expertise, general management capabilities, and personal attributes. During a 12-month investment process, we share close working relationships between portfolio companies, and leading companies in the respective areas.

The CSC investment process is a hybrid model of a classic venture capital model and a corporate venture model: CSC acts an independent investor, searching for the latest and most promising blockchain projects on the market. However, the search for projects does not start based on an investment hypothesis alone, but on the basis of the in-depth and long-term project experience of the CSC team with corporations in the targeted industries. Equipped with deep insights into the needs of major industry players, CSC is able to focus its investment process by carefully targeting blockchain projects that match industry’s needs. The true strength lies in the combination of sound investments based on unique experience in building blockchain-based products alongside decades of management and operational experience.

Startups qualifying for investment by Crowdstart Capital should:

  • work on a blockchain-related project in one of the above mentioned fields
  • be willing to adapt their offering to existing market needs and
  • be entrepreneurial to the max.

Naturally, the above criteria are necessary but not necessarily sufficient for an investment to take place. The vetting and due diligence process will be carefully executed according to the current market climate, mentoring capabilities available at Crowdstart Capital, fit to industry needs, potential for further development in team and personal fit.

Investment Details

  • 10-20 investments
  • Up to $500,000 per investment
  • Target deal lifetime between 6 and 12 months

PRELIMINARY DIGITAL TOKEN OFFERING TERMS

Token Denomination
1 CSC token = 0.01 USD

Token Cap
2.5 billion (2,500,000,000) CSC tokens maximum

250 million (250,000,000) CSC tokens minimum

Token Structure
80%: Investors
10%: CSC Partners
5%: CSC Team
3%: Advisors
2%: Bounties

Management Fees
2.0% management fee, 25% performance fee

Token Buyback
If the token price is less than the fund’s NAV, CSC may offer token holders the possibility of a buyback. The tokens involved in a buyback will be nullified, thus increasing the indirect value of other tokens still on the market. The price offered for the buyback of the tokens will take into account the public token trading price at that time.

Trading Term
Evergreen: tokens are traded in perpetuity once issued

Structure
Crowdstart Capital Fund I, managed by Crowdstart Capital

Expenses
Fund set-up; ongoing legal, accounting and administration costs

INVESTMENT BENEFITS

Venture Capital Game-Changer

Crowdstart Capital aims to establish a new type of investment fund, based on innovative technology and previously uncharted venture territory. “Changing VC” is the name of the game, and Crowdstart Capital aims to win the world championship.

In order to make the venture capital market more available and democratic, as few limits on amounts or liquidity will be imposed upon investors as possible. The investment opportunity should be open for both private investors and institutions, levelling the playing field and removing barriers to entry.

A unique position with potential

The team behind Crowdstart Capital, Datarella GmbH, is a leading solutions provider within the blockchain technology since 2015. Datarella has led blockchain projects to success for a multitude of companies within manufacturing, automotive, supply chain, insurance and humanitarian aid.

During the last years of working on blockchain technology, Datarella has noticed a very strong trend among industries, the willingness and initiative is there for blockchain, but the knowledge and technology is missing. To fill this gap, and leapfrog on the enthusiasm seen among corporations and  individuals, Crowdstart Capital aims its investments towards rising stars with a clear goal within blockchain technology.

Experienced Management & Advisory Team

The team managing the fund come from a wide background of entrepreneurship, private equity, technology and C-level experience. There is however one common characteristic governing all decisions, a strong pragmatism and attention to market trends.

Working on implementing and strategic reasoning in blockchain projects for the last couple of years has built a solid basis of understanding for the blockchain field as well as in-depth knowledge of various use cases.

The advisory team includes legal experts, management from industry and scientific and technical advisors. They provide the managing team with an unparalleled knowledge basis and advice as well as contact to key persons.

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