Silicon Valley Coin

SVC represents an opportunity for investors to gain access to Silicon Valley companies typically limited to select accredited investors. Specifically, SVC invests in late-stage, high growth private technology companies.

If you are considering investing in SVC and have any questions, please post them here.

Hi!

because of their token that represents ownership stake in the fund is this different from being part a VC’s investment and waiting for their selected startups to succeed? is it a bit like investing in funds of funds?

Thanks!:slight_smile:

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.

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hi! so does that mean that owning SVCs is a limited time opportunity because of the buy-back and burn aspect?
Why is Andra Capital letting us have ~30% return on our investment? Why don’t they get bank loan - wouldn’t that cost them less than 30%?

Thanks!!:slight_smile:

Thank you for following up and great questions! The “buy-back and burn” mechanism is a means of dividend distribution and value appreciation of the the tokens. The opportunity to purchase SVCs will always be available given the evergreen fund structure; however, the initial price of $1.00 per token is a limited time opportunity. SVC tokenholders will have the option to: (i) hold the SVC long-term (similar to a stock); or (ii) trade the token at the current market value. For more information, please download our whitepaper at www.andracapital.com.

Companies generally maintain a mix of equity (VC) and debt (bank) financing for its capital needs. Andra is a traditional venture fund that aims to provide its investors with 30%+ target annual IRR returns.