💰 SPiCE VC completes second investor payout

SPiCE VC investors are feeling the spice!

The Security Token Market's first-of-its-kind Web3-enabled crowdfund on the Avalanche blockchain continues to trek on! 🔺

In fact, 84 people from 14 different countries and 5 continents have invested!

Gooood morning, Rainmakers! ☀️

As always, I have two captivating topics for you to dive into:

1️⃣  💰 SPiCE VC completes second investor payout: This marks the second time investors in the SPiCE VC Fund have received an investor distribution!

2️⃣  Ownera is owning it: Ownera to solve the security token liquidity issue via a unified digital wallet!

Without further ado, it's time to…

Get liquid 💧

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💰 SPiCE VC completes second investor payout

I tell ya, it's really good to be a SPiCE VC investor in 2022.

Every asset class seems to be taking a nose dive, but SPiCE VC in particular has made investors at least monetarily happy.

A few months ago, after a successful exit of their investment in OTOY, SPiCE VC became the first tokenized VC firm ever to successfully distribute an investor payout to its LPs!

And now they did it twice!

In a letter informing investors, the VC fund also touted the milestone of achieving 70% Distribution to Paid-In Capital (DPI) for its investors in just a four-year period.

Let's get basic on DPI:

Distributed to Paid-In Capital (DPI) is a metric that is utilized to measure the total capital that a fund has returned to its investors.

It basically tells you how much the LPs' total allocation to the fund has returned to them.

For example, the formula is 

Let's say the fund raised a total of $100M from investors and returned $50M via successful exits to the same investors, the 'Paid-In Capital' would be $100M and the 'Distributed Capital 'would be $50M.

Therefore, the DPI would be 50%, which means investors would have received half of their allocation to the fund via exits.

Reportedly, this will be a multi-million dollar payout via the exit of some of their top investments, Blockdaemon and Securitize to ~400 of their LPs.

“We are excited to announce that we will be making our second distribution to SPiCE VC investors this year, with additional payouts expected in 2023.”

Tal Elyashiv, founder & managing partner of SPiCE VC

You can catch SPiCE VC trading on the secondary markets as well, so not only do investors receive distributions upon successful exits but they also have the potential liquidity to get out when they choose.

💪 Ownera is owning it right now

For the last few weeks, Ownera has been on an absolute tear!

Firstly, they announced that they raised $20M led by the financial behemoth JP Morgan, which is just another validator that the institutions are investing in our space more and more.

Does Jamie Dimon know that this happened? I thought crypto was a Ponzi scheme to him?!

I know, I know... he was talking about cryptocurrencies, not on-chain securities, but still funny.

Other participants in the round included Draper Goren Holm, tokentus Investment AG, Accomplice Blockchain, Polymorphic Capital, The Ropart Group, and Archax!

After this funding announcement, they also announced a partnership with Tokeny Solutions, as well as R3.

"What are they partnering for?"

I did a little digging and it's actually pretty amazing what Ownera is working on.

As we all know, liquidity has been a bit of a struggle for security tokens and that's no one's fault, but a reality of our industry right now.

"However, Ownera's objective is to create a global unified inter-trading pipeline for digital securities, efficiently connecting siloed tokenization platforms and trading interfaces.

Based on the open-source FINP2P protocol, Ownera’s offering seamlessly connects any type of securities tokenization engine on any public or private blockchain, or even on traditional ledgers."

I like the innovation here to create a unified digital wallet that is interoperable amongst all chains.

Let's see if this helps increase liquidity across the siloed liquidity providers.

There is one large challenge that I see and that is it's how do they get all of the exchanges/marketplaces to sign on to this?

Time will tell!

💦 What else is Drippin’

Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.

Private market investments are speculative and considered risky, including the potential loss of your investment, and may not be appropriate for every shareholder. Private investments are generally an illiquid asset class; shareholders cannot sell their funds when they want to without potentially facing high losses. Any discussion of liquidity is purely speculative. Past performance is not indicative of future results.

Crowdfunded securities are generally offered by early-stage companies and investors should be prepared to lose some or all of their investment. Investors should read all of the risks and disclosures prior to making any investment decisions. Securitize Markets is an SEC-registered broker-dealer, FINRA member, and operator of Securitize Markets ATS, and an SEC-regulated Alternative Trading System (ATS).

Carlos Domingo is a founder and general partner of SPiCE VC as well as CEO and Co-Founder of Securitize.