Hi! Thank you for your question. You have the right idea. The token represents an ownership stake in the fund, which directly invests in late-stage, leading and proven tech companies in Silicon Valley. It is like being an owner of a venture capital fund, rather than fund of funds.
The value of the token is derived by the net asset value of our fund. The price per SVC reflects the performance of our fund and some premium to account for the 1) general liquidity relative to traditional venture funds; 2) scarcity of the fixed supply of Silicon Valley Coins in the market; and 3) future expected earnings of the companies in our portfolio. Upon each successful exit, we allocate up to 50% of our profits to buy-back and burn SVCs, which reduces the number of tokens in the market and increases the price per token outstanding. The remainder of our profits are reinvested into our fund for additional investments. This results in a perpetual evergreen fund that continues to increase in value.