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22x Fund: Tokenized Equity Investment in 30 Startups

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In their early stages, startups require funding, which provides opportunities for both the companies as well as the investors. The traditional methods of financially backing startups include finding angel investors, venture capital or obtaining grants. While these types of funding are safe, they create limitations and time constraints for businesses. ICOs, on the other hand, are flexible and result in ‘quick money’. More importantly, ICOs present a future that attracts the millennial generation. The newest addition to this concept is the 22x Fund, a group of 30 startups planning to sell equity to people in their upcoming ICO.

What is 22x Fund?

500 Startups in San Francisco holds accelerator programs for startups every year. 22x Fund is a group of 30 startups of the 22nd batch who graduated last summer / fall. 500 Startups stands for diversity and gender equality, and has invested in over 1800 companies from 60+ countries. Their accelerator program has an acceptance rate of almost 2%, which is why they present the fastest-growing companies to the world. While they are not responsible for the creation of the 22x Fund ICO, they still have investment interests in each company. Other investors include Walmart, Buzzfeed, BMW, TechCrunch, LinkedIn and the Government of Dubai. The 30 22x companies provide services for various industries including real estate, mailboxes, finance assistance, events and entertainment, factories, profitability predictors, recruitment, and therapy.

22x Fund cleverly uses the concept of tokenizing assets, which provides security to the company as well as the investor. The project works under Securitize, a platform that tokenizes all kinds of assets to provide security tokens. It manages pre-sale and ICOs, and issues security tokens while allowing users to take advantage of its services for the ‘asset’s lifetime’. Security tokens facilitate liquidity, which is not easily achievable in traditional funding. In 22x, the equity you own is tokenized such that you buy 22x tokens in exchange for cryptocurrencies (Ether, Bitcoin, Bitcoin Cash, or Fiat (USD,EUR)). Then, you receive 2.5% to 10% share in each company. Once the ICO is successful and the companies start growing, you can enjoy return on those investments, sell the tokens or exit the startups if you wish.

The Verdict

22x Fund is an excellent opportunity for investors to become a part of some of the best companies from Silicon Valley. The project provides protection by ensuring that the ICO follows strict laws in each country, allowing only licensed investors from the US, and following similar rules for investors from other countries. Overall, 22x Fund has raised a great amount of interest in the crypto community. The concept is creative and the tokens are backed by real equity which makes it favorable for investors worldwide. Here are a few details of the ICO:

  • Pre-sale Period – January 26, 2018 to March 9, 2018 at 11:00 GMT
  • Minimum Contribution – $100k (US participants), $10k (Non-US participants)
  • ICO Period – March 9, 2018 to March 23, 2018 at 12:00 GMT
  • Minimum Contribution – $50k (US participants), $5k (Non-US participants)
  • Target – $35M

For more information, click the link here.

Disclaimer: Opinions expressed in this article are based on the author’s analysis. Please visit the website and perform detailed research before investing in the ICO.

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