Out of the blue, SF-based Andra Capital
claims to have raised $500M in a pre-sale for its tokenized late stage tech fund, targeting up to $1 billion through a token sale to accredited investors later in the summer.
Investors will get exposure to a portfolio of high profile late stage VC-backed high growth tech companies with an exit or IPO in reasonable sight, through a security token creatively named - wait for it - 'Silicon Valley Coin' (SVC) that will be listed on regulated security exchanges, or so they promise.
It's not very clear from the documents how they will get into the hot deals, if via secondaries (seems the most likely route) or primary capital. Also not clear if token holders should expect to receive distributions from exits, it would appear that profits from sales are rather reinvested into token buybacks (other than carry which presumably will be pocketed by the GPs).
Also, 3% management fee (ie $30M a year), 20% carry. Promising a 30%+ IRR.
I, Stefano, have rarely seen something smell so scammy in the venture fund world. I would suggest reading the whitepaper
if you have some time reserved for laughter.
Some gems: "the declining number of IPOs per year necessitates a consistent deal flow of potentially high-ROI opportunities. Our proprietary strategy and stakeholder ecosystem provides 30%+ IRR returns from investing in primarily late-stage technology ventures."
We have found no forms registered on the SEC website.