IOB: Frequently Asked Questions — FAQ— Smart VC™

 2. Smart VC™

What is the Smart VC™?

We have moved our entire investment business onto the blockchain. It improves the old VC model by:

  1. Tokenizing the investment capital, which enables an average investor to participate in high growth early-stage venture capital and private equity investments;
  2. Providing immediate liquidity to the investors;
  3. Fully integrating the blockchain technology with the entire company governance and investment decision-making process, rather than only using blockchain for fundraising;
  4. Eliminating the management fee that has been the bread and butter for most VC funds for decades.

What makes your investments have a better chance of success?

Most VC firms rely on a few partners and analysts for all of their investment decisions. As a result an overwhelming percentage of their investments lose money as a whole by the measure of industry average. At IOB, we make use of thousands of paid (and unpaid) “analysts,” our community members, to help out on our investment decisions. This way, we create a network of (tens of) thousands all over the world which gives us the best, the most timely and diverse insights other companies lack.

Is IOB a tokenized VC fund?

No. IOB is an active investment holding company instead of a fund company. We are actively involved in strategizing, advising, and providing management support, if necessary, to portfolio companies’ regarding their governance, management and operations needs.

As a blockchain hedge fund, how do you invest in ICOs?

IOB is not a crypto hedge fund, nor does it typically speculate in other ICOs.We invest through equity stakes in entrepreneurial companies. We own their equity shares, and when a company does its own ICO, we will be granted their tokens as well.

Does IOB have other businesses?

IOB is actively advising tech startups and ‘traditional’ financial firms to reshape their businesses.All of IOB’s businesses in investing, algorithmic trading and advisory services have a common purpose, which is to build a new global financial system, we call it the IOB Mesh. Our investment focus, criteria and even the main revenues of the business will evolve over time. The IOB Mesh network is a distributed, rule-based peer-to-peer network that enables all blockchain-based financial transactions fully comply with various local and international regulations.