Key Takeaways
- • Fineqia International Inc. plans to launch Fineqia Glass Slipper Ventures (FGSV), a venture capital fund investing in digital asset companies, with an initial closing targeted for Q3 2023.
- • Fineqia will transfer a selection of its existing investments into FGSV's portfolio in exchange for a proportionate equity interest in the fund.
- • FGSV will be established as a private closed-end fund in the European Economic Area, with a set-up cost of CHF 100,000 (C$150,000).
- • Target sectors include blockchain infrastructure, decentralized finance (DeFi), and metaverse, including gaming, media and entertainment, with a chain-agnostic approach.
- • CEO Bundeep Singh Rangar said lower entry valuations than 18 months earlier would let the fund deploy the same capital across more companies.
Summary
Fineqia International Inc., a digital asset and fintech investment business, announced plans to establish a new venture capital fund, Fineqia Glass Slipper Ventures (FGSV), to invest in early and growth-stage companies in the digital asset industry, according to a company announcement published by FF News on 2 May 2023.
Under the structure described, Fineqia will transfer a selection of its existing investments to FGSV, which will form part of the fund's portfolio. In return, Fineqia will receive a proportionate equity interest in the Fund. The company has previously invested from its balance sheet in digital asset manager Wave Digital Assets LLC, the Wave NFT Fund, blockchain gaming platform Forte Labs, Inc., and the IDEO CoLab Fund 1.
Fineqia CEO Bundeep Singh Rangar said the company has a track record of investments generating extraordinary returns and that a dedicated fund would provide more capital to back the most promising firms among those the company reviews monthly. He noted that entry valuations are less frothy than they were 18 months earlier, allowing the same investment sum to be deployed across more companies.
FGSV is intended to be a private closed-end fund in the European Economic Area, and will be set up with the approval of an EEA-based regulator. Fineqia has identified blockchain infrastructure, decentralized finance (DeFi), and metaverse, including gaming, media and entertainment, as key investment areas. The fund will also allocate capital to opportunistic deals, such as distressed companies, and to entrepreneurs building new applications on blockchain. Its approach will be chain-agnostic, based on the view that blockchain will be multi-chain and borderless, with emphasis on interoperability, seamless customer onboarding and tangible revenue traction.
The set-up cost of FGSV is CHF 100,000 (C$150,000). Fineqia anticipates an initial closing, the point at which investors first commit capital, by Q3 2023.
Under the structure described, Fineqia will transfer a selection of its existing investments to FGSV, which will form part of the fund's portfolio. In return, Fineqia will receive a proportionate equity interest in the Fund. The company has previously invested from its balance sheet in digital asset manager Wave Digital Assets LLC, the Wave NFT Fund, blockchain gaming platform Forte Labs, Inc., and the IDEO CoLab Fund 1.
Fineqia CEO Bundeep Singh Rangar said the company has a track record of investments generating extraordinary returns and that a dedicated fund would provide more capital to back the most promising firms among those the company reviews monthly. He noted that entry valuations are less frothy than they were 18 months earlier, allowing the same investment sum to be deployed across more companies.
FGSV is intended to be a private closed-end fund in the European Economic Area, and will be set up with the approval of an EEA-based regulator. Fineqia has identified blockchain infrastructure, decentralized finance (DeFi), and metaverse, including gaming, media and entertainment, as key investment areas. The fund will also allocate capital to opportunistic deals, such as distressed companies, and to entrepreneurs building new applications on blockchain. Its approach will be chain-agnostic, based on the view that blockchain will be multi-chain and borderless, with emphasis on interoperability, seamless customer onboarding and tangible revenue traction.
The set-up cost of FGSV is CHF 100,000 (C$150,000). Fineqia anticipates an initial closing, the point at which investors first commit capital, by Q3 2023.
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