Kiwi Holding — Solving the liquidity problem in VC funding with the use of blockchain
For a long period, low liquidity in long-term investments has been a major problem in the market. VC funds are a good example of this. While these funds offer a wonderful opportunity to profit greatly from investing in upcoming, high-potential projects, the options to exit in the short term are very limited, almost zero. This is because these funds offer low liquidity and have a typical investing period of around 8–10 years. But things are changing now.
Kiwi Holding is a new-generation investing firm that intends to use blockchain technology to solve the liquidity problem of traditional markets and offer highly liquid VC funds with global investment opportunities to modern investors. Here’s everything you need to know about it.
“We understand how illiquidity of long-period VC funds can be a big problem for investors and intend to solve the problem for the benefit of the whole industry,” said the founder of Kiwi Holding. “In addition, the high capital requirement is another big constraint for many who want to invest in VC funds. We will change this with the use of blockchain technology,” he added.
The primary focus of Kiwi Holding is to bring liquidity to otherwise illiquid venture capital funds through blockchain tokenization.
Kiwi Holding will issue and use Security Tokens to allow “investors of any size to benefit from investment opportunities without the need to lock in capital for a long duration, giving them stable fixed returns as well as liquidity option to cash in or out at any time.”
Security tokens are tokenized securities that are maintained on a blockchain and can be traded seamlessly with greater transparency and security. Kiwi Holding will allow investors to buy its tokens, in exchange for which it will offer equity in participating projects/startups. The funds raised will be invested in a group of selected high-potential projects and startups with a target period of one year or less and an expected return of 12%-14% on the investment amount.
In exchange for their funds, investors will receive around 8% annual dividends, which will be paid quarterly. In addition, they will have the freedom to liquidate their investments by selling their Kiwi tokens at any time during the fund period. They can even enter and exit multiple times during this period.
Kiwi security tokens will be listed on a number of leading crypto exchanges to provide ample liquidity to the holders. Kiwi tokens will be backed by real assets of the company and will therefore have real value in the market. Investors looking to cash out can easily and instantly sell their tokens on any supported exchange for instant liquidity.
Another benefit of the Kiwi Holding VC fund is that investors will get ready access to a portfolio of pre-qualified and well-researched investment opportunities (high-potential projects of popular companies and startups) and can invest irrespective of their pocket size, starting as low as one Kiwi token.
The first STO for the Kiwi Holding VC fund will go live soon. Visit our website www.kiwiholding.com and join us on social media for regular updates.
Originally Published at https://leofinance.io
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