The Latin American seed capital fund InvertUP, listed in the Costa Rica Alternative National Stock Exchange, intends to release up to 30 million tokens during its Initial Coin Offering (ICO) through its SPV, Mango Startups. The nominal token cost per unit is set at $0.10.
The first $1.0 million raised, will be invested in the 8 Latin America startups held in the InvertUP seed capital fund portfolio, while the remaining funds are to be invested in the next batch of startups introduced to the fund, from a pool of LATAM top performers.
Future investors will have the opportunity to exit their positions in the startups to obtain maximum profit, and to trade Mango tokens on the secondary market.
‘Investors will have a unique opportunity to back startups that have already grown out of the the initial stages of their development, having raised their first investment rounds from various funds, accelerators and business angels. In our project, investors gain access to a diversified portfolio of actively developed and promising startups in the venture market . Potential investors can invest with confidence and trust since our Seed Fund meets all the requirement of transparency and good practices of the National Alternative Stock Exchange of Costa Rica. I’m confident that the innovative collaboration between InvertUP Seed Capital Fund and its SPV, Mango Startups, will prove a promising format for the venture market that can grow to be adopted by other players in the industry in the near future,’ comments Marcelo Lebendiker, Managing Partner of InvertUP Seed Capital Fund.
The main determinant of the token price in the secondary market will be the Y0Y performance of the portfolio of companies that adhere to the fund. Among some of the variables that will determine performance are: raising a new round of investment, revenue growth, partnerships with major market participants, getting startups into larger accelerators and of course successful exits - acquisition of the startup by a strategic investor. As an example, the Aditi/Kiboo acquisition (part of InvertUP 16/17 fund) raised the company valuation 12x since their seed round. Another 2 startups in the InvertUP 16/17 batch have raised series A rounds.
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When future successful exits take place, the acquirer will be required to make the prorated contribution in Mango tokens. This is done through the SPV Mango Startups, which will distribute outstanding profits as “bonus” for all token holders or, repurchase the tokens in the secondary market. Since the total supply of Mango tokens will be capped at 4.0M, then the price of the token is likely to increase.
‘The democratization of venture investment with a clear exit strategy, based on transparency and trust, is the primary motivation behind this project. Successful exits of the startups in the investment pool will allow the ICO’s participants to receive an income comparable to the level of profitability in the existing venture industry,’ comments Gabriel Chernacov, Vice President of InvertUP Seed Capital Fund. The secondary aim for the project is the creation of a highly liquid secondary tokens market. This will allow many potential investors to participate in venture financing of projects with a low entry threshold and the ability to exit at any stage of their implementation. Gains in the market price will provide an opportunity to achieve ROI from reselling the tokens. The relatively low initial value of the token is an additional factor that increases its liquidity and attractiveness. Finally, without any doubt, enlisting our Seed Fund InvertUP on a Stock Market will give the ICO investors confidence in our process.’
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Marcelo Lebendiker is an angel investor and a private investor. He is the co-founder and managing director of the InvertUP seed capital fund and ParqueTec Accelerator. He has been working in the field of Innovation, entrepreneurship and venture capital for more than 15 years.
Gabriel Chernacov has worked as a top executive in multinational companies for more than 20 years. He is the Vice President of InvertUP seed capital fund. Currently he is a mentor and an Angel Investor, Founder and CEO of Wow Emotions USA.
Mango Startups is an SPV created with a call options for up to 35% of the InvertUP seed capital fund portfolio, a company that owns up to 18% in each of 7 startups, InvertUP has been appraised with a market value of $1.8 million.
This press release is for informational purposes only. The information does not constitute investment advice or an offer to invest.
Learn more about InvertUP Seed Fund at — www.InvertUP.com
Find out more about the Mango Startups ICO at — www.MangoStartups.com