Crypto Ventures are a kind of private equity (% of market value of the project) holders and startup booster where they invest in new and small projects for long term profit.
And angel investors are rich private investors who make initial investments in small projects themselves, take some ownership shares of the project and later go out with profit in any sale (ICO, IPO). They also help small ventures.
How does a crypto venture work?
Crypto Ventures are basically a team of individuals or individual investors who create ventures. Investors can usually be involved in a venture for 2-46. They usually know the concept of the project through some investing platforms, team details and hobbies before investing.
After knowing, it is Nikesh's turn to calculate investment and token allocation / equity. The more equity in a good project or the lower the token price, the better. In this case, the money that the venture will give to the project may be in the vesting period depending on the performance.
How is profit allocation?
A venture is on the field with a 5-10 year investment plan Later that fate is decided. In this way, profit analysis is done every year and the profit is shared accordingly. There is a very interesting thing here !!!!
Ventures have a manager who manages the funds and invests funds in the project from the investor. His profit is different and that profit can be called.
So how is the manager's profit calculated?
Since the fund manager manages almost everything, he gets extra benefits.
The condition of profit share between fund managers and investors is that if you invest more than one percent profit then the profit will be divided into two parts. One part will be taken by the fund manager and the rest will be taken by all the investors. Assuming, the gross profit is 10% as per the conditions. In other words, if the fund manager invests in one year and brings more than 10% return, hold 20%. So, the first 10% will be shared by the investors. 5% of the remaining 10% will be taken by the fund manager and the remaining 5% will be shared by the investors. If the profit is less than 10% or less, the fund manager will not get anything.
Can a venture be invested in any project?
The answer is yes and no again. There is a lot of competition among the ventures. If you want to be a partner in 10 ventures, you must do more than just money. Maybe you helped the project with connection or industry. Or visit the marketing and public relations department of the project or help in partnership. If it is a new venture, you have to show these benefits along with money.
How about a legal issue?
I did not find much in the way of legal issues. That is to say, permission to buy your token from ICO, sign of investors and agreement at the time of investment in the project.
What are the leading ventures in crypto?
To my knowledge Coinbase venture, Alameda Reseach, DAO, Binance Research etc are most famous. Coinbase has its own page where you can get a list of their invested projects.
What is the risk and profit ratio of investment through venture?
It will depend entirely on the projects invested. Very good profit is possible if you invest in a good project. On the other hand, if you do a bad project, there is a possibility of total loss.
Should you invest as a venture capitalist?
Yes, why not? If Legend can be associated with a venture and you have a good amount to invest, then join. By good amount here I mean 1-2 million at least if you want to join a small venture.
Brother, I do not have so much money, what can be done?
If you do not have enough money, then it is best to save money without losing any venture. After the venture comes the option of IPO / IDO offering which you should go for ”!!!
I will try to write more about IPO / IDO in the next post. If there is a mistake, you must look at it with forgiveness. Compiled and refined from Rakibul Bhai's post.
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