San Francisco, CA — April 1, 2019 — Blockchain Capital, a premier venture capital firm investing in blockchain technology companies, today announces that the net asset value (“NAV”) of each BCAP token as of March 31st, 2019, is $2.64, based on the NAV of the underlying venture capital fund, the Blockchain Capital III Digital Liquid Venture Fund, LP. Weekly NAV updates can be found at www.blockchainloop.com.
In the spirit of openness that characterizes much of the blockchain industry, we are pleased to provide more quarterly details about holdings of the BCAP. With additional transparency, we are hopeful that the BCAP will benefit from the opportunity for increased trading liquidity.
In addition, we regularly field questions from investors and potential investors about our valuation methodology. Below, we provide a high-level summary of the BCAP valuation framework that we have developed while working with our auditors and fund administrators:
Equity: valued at the price per share of the most recent qualified financing or comparable market analysis, if there have been no financings within the past two years.
SAFTs and Tokens: valued at the price per token of the most recent financing or current exchange price, if traded. If the token asset features a lock-up, we apply a 25% discount for a lock-up period greater than one year, and a 15% discount for a period less than one year.
The BCAP portfolio is up 164.0% since inception, post-STO from April 2017, and has a Net IRR of 63.5%. This is net of all management fees and carry.
The composition of the portfolio as of March 31st, 2019 is as follows:
About Blockchain Capital
Blockchain Capital was founded in 2013 with the mission of helping entrepreneurs build world-class companies and projects based on blockchain technology – providing founders with the tools they need to succeed: capital, domain expertise, partnerships, recruiting and strategy.
Blockchain Capital is one of the oldest and most active venture investors in the blockchain industry and has financed 75+ companies and projects since its inception. The company invests in both equity and tokens and is a multi-stage investor. Blockchain Capital also pioneered the world’s first ever tokenized investment fund and by extension the blockchain industry’s very first security token, the BCAP, which the company sold through a security token offering in April of 2017.
The company’s view is that blockchain technology holds the promise to disrupt legacy businesses and create whole new markets and business models. Blockchain Capital believes its network of entrepreneurs, investors, and advisors brings unrivaled resources to founders who want to leverage blockchain technology to change the world in profound ways.
Disclosures: Nothing presented herein is intended to constitute investment advice, and under no circumstances should any information provided herein be used or construed as an offer to sell or a solicitation of an offer to buy securities or interests in any investment fund. All figures listed above are unaudited estimates of Blockchain Capital III Digital Liquid Venture Fund, LP (the “Fund”) that have been generated by BC III DLVF GP, LLC (the “General Partner”), and are subject to modification by the Fund’s independent administrator and/or auditors. The Fund’s performance figures are net of all fees and expenses, including management fees and estimated carried interest, if any is due to the General Partner. Investment performance figures have been calculated based on the Fund’s investments and AUM. The information regarding performance, exposures, and other portfolio characteristics are presented as of the date referenced and may not be representative of Blockchain’s current or future investments. Portfolio holdings will vary.
The information provided herein is historical and past performance is not indicative of future results. As with any investment strategy, there is potential for profit as well as the possibility of loss. No guarantee of investment performance is being provided and no inference to the contrary should be made. It should not be assumed that an investment in any fund managed by the General Partner or its affiliates will be profitable. Investment in the fund described herein will be suitable only for certain sophisticated investors who have no need for immediate liquidity in their investment and who are comfortable with the substantial risks associated with such an investment. Please note that this letter contains unverified performance estimates and may be subject to change. The General Partner and its affiliates undertake no obligation to revise or update this information. THIS PERFORMANCE SUMMARY IS FOR INFORMATIONAL PURPOSES ONLY.
Any reproduction or other distribution of this material in whole or in part without the prior written consent of the General Partner is prohibited.