Blocks Ventures does venture debt for ICO’s.
The terms of the venture debt:
- Has interest
- Requires a small piece of equity
- Requires tokens at the ICO
Investment decision making process
We go through the following process around our investment decisions:
- Screening deals (prefer companies with substantial traction and clear utility token)
- Do due diligence (team, financials, vision, culture etc.)
- Check with our investors for preico investment appetite
- Check with our listing partners for their interest in listing the token
- Make offer
- Negotiate terms and close
- Send cash and introduce advisors etc.
The whole process can take a couple of weeks however as we are small in size and can only do 3-4 deals a year our filters have to be high due to the opportunity costs.
Our ticket size is $500k to $1m for the venture debt. We believe that it should take around 4-6 months to launch a successful ICO and the barriers to entry are becoming higher with the number of ICO’s exploding which means that good ICO’s need time and money to develop themselves.
We don’t invest in preico investments as this is not our thesis and prefer to help businesses with doing their ICO’s and coming in earlier than traditional investors.
If you would like to have your business considered for investment please send us a message through our contact form.