The 22x tokenized investment fund provides traders regulated access to equity investments in Silicon Valley’s most promising companies. The outfit plays a vital role in providing liquidity to bright projects and has already secured over $22 million for startups to date. Currently, the network holds investments that include members of the 500 Startups Accelerator and other recognized institutions.
The goal of the project is to disrupt venture capital by pre-selecting a diverse group of companies with high ROI potential. Specifically, 22x focuses on firms that leverage blockchain, machine learning, data mining, health, legal, marketing, transportation, and insurance technologies into their systems.
What Problems Does 22x Attempt to Fix?
There are some serious issues that 22x helps to alleviate in the market. For one, the protocol enables traders to gain broad exposure to Silicon Valley’s select protocols. The network provides traders with a way to invest in a group of pre-vetted early-stage startups. This saves traders time, effort, and fees that would be required to accumulate shares in each firm individually.
Lack of Liquidity
Liquidity problems faced by startups are one of the main issues that fund helps to solve. It can be difficult for startups to access funding when needed most. These problems can be exasperated when the technology and features are completely new and disruptive to their respective markets. The group seeks out startups that need funding to make a difference in their industries.
The traditional means of acquiring funding from the public are expensive and exclusive. Crypto-based strategies like ICOs (initial Coin Offerings) have grown in popularity, but are unable to provide the same structure as securities. The group helps to get these startups the funding they need.
Finding the Best Startups
It’s one thing to sort through the most reputable names in the blockchain sector. That’s easy, compared to sorting through the endless flood of new protocols entering the market weekly. Finding the best startups to invest in is like finding a needle in a haystack for a new trader. 22x helps to streamline the process as the token includes alumni of the 500 Startups Global Seed Accelerator program.
Notably, the 500 Startups Accelerator is one of the most exclusive programs available to blockchain startups. The program is recognized for its exclusivity with a ~2% acceptance rate. As such, 22x provides qualified investors exposure to equity in these protocols via a secure matter.
High Fees
Another issue that 22x reduces is high fees. It can be expensive to conduct trades through brokers. It would cost a regular trader a lot of money to seek out exposure to all of these companies in the fund separately. The firm enables verified traders to indirectly invest in these companies and save on fees.
Inefficiencies in the Traditional System
It’s important to understand that 22x is a regulated blockchain asset. As such, it enjoys the full efficiency of blockchain technology. The token can be traded to approved traders in seconds without the need to include third parties in the process. The 22x fund is unique in that it leverages the same technologies it uses to fund the project.
What are the Benefits of 22x?
There are some unique benefits that the fund makes possible. For one, the protocol enables traders to gain exposure to companies that they would otherwise be unaware of or unable to access. Token hodlers receive proceeds from liquidity events related to these companies. Additionally, there are significant savings versus traditional avenues of venture capital investment.
Flexibility
The 22x fund includes +30 global startups. These companies have been meticulously vetted to ensure they have the stability and strategy to succeed. The fund includes a variety of game-changing technologies including blockchain-based firms. Traders enjoy more stability and higher returns thanks to the flexibility and diver approach taken by the protocol.
Expert Advice
Users gain the advantage of years of investment experience when they hold 22x. The group includes a group of professional traders that have proven to be effective at selecting the right companies to back at the right times. By pre-selecting a diverse group of companies, 22x has managed to drive ROIs for token holders.
Driving Blockchain Adoption
Another major plus for 22x is how it helps to fuel blockchain adoption across multiple sectors. The fund helps to provide startups with the liquidity they need to take their concepts and form them into reality. Additionally, it helps these firms to gain recognition as projects to watch in the coming months and years.
How Does 22x Work?
The 22x token provides the holder with exposure to equity in an exclusive class of Silicon Valley tech startups. Token holders receive proceeds from equity sales from these firms. Notably, these dividends get distributed in USD to token holders based on the number of tokens they possess.
Token
The 22x token entitles you to between 2.5% to 10% of the equity in each 22X portfolio company. The token has a limited supply of 36,750,000. Notably, 22x is a regulated and registered security token. As such, it can only be transferred once full trader verification requirements are met.
History
The 22x project launched in January 2018. The protocol is based out of California and lists its founders as Ayush Khanna and Jake Koppinger. Notably, 22x includes startup founders from Batch 22 of 500 Startups Accelerator program.
Bottom Line
The 22x team seeks to get you in on the ground floor of game-changing tech. The network has proven to be good at selecting the protocols that are on the verge of a major breakout. As such, 22x token holders continue to receive dividends as the portfolio expands in value and diversity. Today the fund plays a vital role in connecting funding with startups in a regulated manner.
