Russians and Chinese launch cryptocurrency-based VC fund
14 Jun '17
Kapinvest 21, a VC company in Tyumen, in Russia’s Southeast Urals, has partnered with a group of Chinese investors, Asia LP, to launch FinShi Capital, a venture fund based on cryptocurrencies. Plans are to invest in blockchain and fintech projects, Firrma.ru reported, citing a source in the new fund which is managed by Russians.
The fund is also said to have announced sales of pre-ICO tokens this month. One can buy the tokens for the world’s most popular virtual currencies available today. FinShi Capital’s tokens will be collateralized with the fund’s shareholdings in start-ups, the partners in the deal said—which means an investor who purchases a fund token automatically becomes a shareholder, on a pro-rata basis, in all companies FinShi Capital will have invested in.
In addition to investment, the fund team is expected to help start-up teams manage and develop their projects, and pay dividends to token owners each time the fund completes an exit from a portfolio company. Token holders will be able to sell their tokens at most of the existing stock exchanges, the source said.
FinShi Capital is shooting for 15-30 seed- and growth-stage projects to invest in; as many as 30 start-ups have already been picked for rigorous screening.