US Capital Global Securities has launched a tokenized venture fund with holdings in some of crypto’s biggest names, such as Bakkt, Coinbase, Tagomi, and Nomics. The fund is called NYCQ and it does not have direct cryptocurrency holdings, preferring instead to hold equity in startups. It is only available to accredited investors. It is the first such offering by CityBlock Capital.
According to the CEO of US Capital Global Securities, the NYCQ fund allows accredited investors to access infrastructure investments, that are generally only accessible to institutional investors. It will have low minimum investment amounts and early liquidity opportunities, he said.
Why the $10 Million Cap?
When the idea for the NYCQ fund was first conceived, the team behind it decided to establish a $10 million cap. According to its founders, keeping the fund small makes it possible for them to leverage recent changes in the regulatory environment and offer “democratized access” to venture capital for crypto startups.
The fund expects to attract up to 250 accredited investors from inside the US and 500 investors from outside it. In total, it will have up to 2000 investors. With this large pool of investors, they hope it will be easier to advocate for companies in its portfolio. For US investors, the lockup period is 365 days and it is 45 days for international investors. In the future, NYCQ may add blockchain and security tokens, which is the next step in the evolution of financial technology. It also plans to expand its portfolio of companies with a special interest in those that are creating infrastructure for the future of cryptocurrencies.