What happens when you throw together 30 global tech startups into the hotbed of Silicon Valley during the Wild West of the crypto craze? You get 22X Fund, the first-ever token offering backed by real equity among a group of pioneering startups that are alumni of the 500 Startups Global Seed Accelerator program.
The 22X Fund, announces today the first-ever token launch of its kind, with token pre-sales beginning on January 26, 2018 at 07:00 EST. By purchasing tokens issued by 22X, investors will now have an opportunity for early exposure to up to 30 high potential early-stage companies.
22X was derived from “Batch 22” of the 500 Startups Global Seed Accelerator program, all of whom participated in the 500 Startups summer 2017 accelerator program. Participating companies in the 22X Fund have already raised over $22MM in seed capital from top VCs, institutions and angel investors.
“ICOs are all the rage right now, but few have a concrete offering underpinning the value of their token,” said Chris Rawlings founder of Judolaunch, a participating 22X company. “Since ICO’s represent a new form of early-stage funding, 22X is leading the way by offering a token that gives investors real value right from the start.”
“Democratizing access to startup capital is the most significant innovation opportunity for the next ten years. Blockchain now allows this to become a reality, by enabling us to better manage who gets funded and who gets to invest. We’re proud to play a role in such an exciting endeavor,” said Ashwini Anburajan, founder of OpenUp, a participating 22X company.
Investors that satisfy the applicable suitability standards and are interested in gaining exposure to a select group of promising startups, can subscribe to 22X with several crypto or fiat currencies and will receive the digital ERC20 compliant 22X Token in return.
In addition to gaining exposure to emerging companies, investors in 22X can expect lower fees compared to traditional VC or ICO investments. Another distinguishing factor of 22X is that unlike many other venture capital investments, it does not subject its investors to carried interest.
22X is aiming to raise $35 MM, almost all of which will be deployed immediately and invested on a pro-rata basis in the equity of participating companies with a view towards fueling their expansion.
“22X can be thought of as a trailblazer in tokenization. We firmly believe we are accelerating toward a future where paper-based securities are completely extinct. 22X is at the forefront of innovation in what might be considered the first issuance of tokens in which returns are based on the success of a select group of promising startups. We are proud to be powering the 22X offering with the Securitize platform,” said Carlos Domingo, Securitize co-founder and president of Securitize.io.
“22X represents an advancement in new investment vehicles, a token backed by equity in up to 30 companies. This offering represents a significant development in the crypto space, and I’m thrilled to be on board,” said Tim Reynders, co-founder of Securitize Capital LLC and investment manager to 22X.
This press release is not intended to be an offer to sell, or a solicitation of any offer to buy, any security or other financial instrument or to invest in the token issued by 22X (“22X Token”). The offering of the 22X Token has not been registered, qualified, or approved under any securities, futures, financial instruments, capital markets, or exchange control legislation, regulation, or ordinance of any jurisdiction. In all jurisdictions, any offer to sell or solicitation to buy a 22X Token, when made, will be directed solely to qualified institutional investors, qualified professional investors, and those other sophisticated persons to whom offers and solicitation may be made without any licensing, registration, qualification, or approval under applicable law. Before you decide to invest in a 22X Token, you should carefully read the 22X offering documents and consult with your own advisors. An investment in a 22X Token is speculative and involves risks, which you should understand prior to making an investment.
The private placements of 22X Tokens have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws, and the 22X Tokens are being offered pursuant to an exemption from registration provided by Rule 506(c) of Regulation D under the Securities Act and in reliance on similar exemptions under applicable state laws. An investment in 22X is suitable only for sophisticated, well-informed investors, and investors will be required to represent that they are accredited investors as such term is defined in Rule 501(a) of Regulation under the Securities Act.
About 22X Fund Companies
The idea for 22X was originally conceived when a group of founders participating in Batch 22 of 500 Startups in San Francisco started discussing some of the challenges facing many companies in the VC industry. After much collaboration, this group discovered Securitize.io, a new platform designed to facilitate the purchase and transfer of tokens among qualified investors. Hence, the 22X Fund was born, Securitize Capital LLC (a wholly owned subsidiary of Securitize.io) was engaged to act as its investment manager and the rest is history in the making. For more information, visit 22xfund.com.
About 500 Startups
500 Startups is a venture capital firm on a mission to discover and back some of the world’s most talented entrepreneurs, help them create successful companies at scale, and build thriving global ecosystems. All companies that will be invested in by 22X were part of Batch 22 of 500 Startups.
Since its inception in 2010, 500 Startups has provided hundreds of millions of investment dollars, acceleration programs, and support services to thousands of entrepreneurs in over 60 countries. Notable portfolio companies include: Twilio (NYSE: TWLO), SendGrid (NASDAQ: SEND), Credit Karma, Grab, Carousell, Udemy, Kudo (acquired by Grab), Talkdesk, Makerbot (acquired by SSYS), Wildfire (acquired by GOOG), and Viki (acquired by Rakuten).
Securitize is the first platform that enables globally regulation-compliant tokenization of securities. The platform is available now, and delivers end-to-end tokenization of any fund, company, or asset. Companies such as 22X Fund (Batch 22 of 500 Startups), CryptoOracle, Kairos.com, and Lottery.com work with Securitize to seamlessly tokenize their securities, raise capital, enable increased investor liquidity, and deliver value to token holders in innovative ways. Read more at www.Securitize.io.
About Securitize Capital LLC: Securitize Capital LLC acts as the investment manager to 22X. Securitize Capital LLC is a wholly owned subsidiary of Securtize.io . Tim Reynders, the manager of Securitize Capital, LLC and formerly of Aiden Lair Partners, will have primary responsibility for the activities of Securitize Capital LLC with respect to 22X.