COINVESTMENT FREQUENTLY ASKED QUESTIONS

(FAQs)

PROPRIETARY, ASYMMETRICAL ADVANTAGE

We have worked for a decade to create our unique sustainable competitive advantage (USCA) in blockchain, web3 and fintech investing. This USCA derives from the fact that we are investors in, and have developed relationships with, more of the leading blockchain, web3 and fintech funds than anyone else - as far as we know. To this we add a team with more than 100 years of collective investment experience in these sectors. This in turn gives us proprietary access and asymmetric information that informs our coinvestment opportunities.

WHAT IS THE COINVESTMENT PROGRAM?

The coinvestment program offers our investor community the opportunity to increase their exposure to emerging category leaders in the blockchain and AI spaces. We aim to bring high conviction opportunities to our investor community most of which are also being backed by our funds.

WHAT TYPES OF COINVESTMENT ARE THERE?

We classify the coinvestment opportunities according to the following nomenclature:

  • Coinvestment Opportunity: [Name of Company] - [Stage] [Sector] [Other information if needed]

Examples of prior investments:

  • Coinvestment Opportunity: Securitize - Mid Stage, Blockchain

  • Coinvestment Opportunity: Uphold - Mid Stage, Blockchain

  • Coinvestment Opportunity: Brex - Late Stage, Fintech

  • Coinvestment Opportunity: Kraken - Late Stage, Blockchain

This nomenclature provides important information for you as you consider the breadth and depth of investment opportunities that you will see as a member of our investment circle

HOW DO YOU DECIDE WHEN TO DO A COINVESTMENT?

On an ongoing basis, we monitor the ‘combined portfolio’ of Blockchain & AI companies our funds have capital exposure in.  We watch for the category leaders as they emerge. If we are aware of a follow-on round taking place we see if it meets our fund filters:

  • Backed already by leading blockchain VC's who are following on

  • Emerging as a leader in its category or strategy

  • Round being led by a leading VC who is not already an investor so the round price is being negotiated

  • Company supportive of us being direct investors into the company

If the round meets all or most of these filters we consider it for a fund coinvestment. Different filters apply for mid stage and late stage opportunities. In addition, we also on an ad hoc basis have attractive investment opportunities presented to us that we may also chose to invest into and make available to our investor circle.

HOW DOES THE COINVESTMENT ALLOCATION PROCESS WORK?

Once we have an opportunity that meets our filters, and in which we can receive an allocation, the following process occurs:

  • We first determine how much of the allocation is required for our funds. The fund of funds each have a 20% allocation for direct investments.

  • If there is allocation remaining after the funds have taken their respective allocations, we may then offer it to our investor circle which comprises our fund LPs and other investors with whom we maintain relationships.

  • We then email our investor circle with information regarding the coinvestment opportunity.

  • If you are interested and would like to invest, please fill out the form provided in the email. It is important that you complete the form and submit it before the provided deadline.

  • If the coinvestment opportunity is oversubscribed, we will allocate first to our coinvestment class (investors who have invested more than $1m with Blockchain Coinvestors are entitled to 75% of any allocation after the funds have invested) and then on a first come first serve basis to non-coinvestment class investors.

  • Once we finalize the deal and determine each investor’s allocation, we will follow up with the subscription documents and wire instructions.

CAN I HAVE MORE INFORMATION OR ACCESS TO DILIGENCE?

All the information available to our investors will be included in the initial email or, if possible, the data room. We cannot accommodate any additional requests for information. 

HAVE YOU CONDUCTED PRIMARY DUE DILIGENCE?

No, our SPVs are structured as coinvestments and therefore we rely on the lead investors for primary due diligence. We have not conducted primary due diligence and each investor should make their own investment decision.

WILL I RECEIVE TOKENS OR EQUITY AND WHEN CAN I SELL MY ALLOCATION?

At this time we can only distribute USD to our SPV investors. Hence, while you will receive allocations in equity stakes in fast growing blockchain companies, you will receive cash when the investment is realized. Our investment team will determine when investment positions are liquidated based on market conditions and internal analysis.

WHAT ARE THE FEES?

Fees vary by each opportunity and are spelled out in the investment communication from our Investor Relations team.

Thank you for your ongoing participation and support