Fuse token will have legal registration in the Caymann Islands. Photo: Pixabay.
O venture capital Fuse Capital should launch its investment token in about a month. With this, Fuse will represent shares in a startup investment fund. “The tokenized structure in the Cayman Islands is ready and we are in the final steps with Securitize, the custodian,” the company told Blocknews. The initial release forecast was July.
Fuse’s idea is to place R$ 20 million in tokens on the market privately for 20 investors, but abroad, especially in Europe and Asia. After that, you want to target institutional investors. The operation abroad is due to the limitation that the Brazilian Securities Commission (CVM) places on security tokens.
In addition to creating the token, Fuse is also using blockchain to record its startup investment processes. In this way, it intends to give investors the ability to view and audit information. Thus, it will be able to solve a problem that investors who have placed resources in venture capital funds are used to complaining, which is the lack of greater transparency.
According to João Zecchin, co-founder of Fuse, “by adopting this model and making clear the reasons why we chose one path and not the other, we naturally engage the investor. This brings him to the discussion of our theses”.
Fuse uses blockchain for token and information access
Blockchain records of the selection process and investment in a startup range from choosing companies for evaluation to due diligence. But it includes other information, such as each manager’s vote on a contribution.
The company is using the public blockchain Algorand. Those who access the private keys are the investment committee and investors. There is a democratization of information, as this information was kept in the manager’s database.
According to Fuse, which has startups such as Hashdex, of cryptoactive investments, blockchain streamlines processes by ensuring security and transparency when buying and selling the fund’s shares.
“Since it is registered on the Algorand blockchain, there is no high need for bureaucracy and intermediaries at the time of any transaction. Also, by using stablecoins like USDT and USDC, the capital transfer is done instantly.”