‘NFTs for future tokens’ Enables VC Funds to Reclaim Locked Liquidity
Accessifi is a marketplace for SAFT (Simple Agreement for Future Tokens) NFTs, which will provide early-stage investors with the ability to realize profits before the agreements have expired. This will also give retail investors unprecedented access to investment opportunities in quality early-stage companies.
Lock and Load VCs
Vital to the proliferation of new ideas and innovations, VCs play a key role in accelerating the growth of promising startups and young businesses. These young businesses compete for the chance to be funded, but because success in business rides on so many factors, successful VC investments are often hard to pick, and funds often adopt a ‘shotgun’ approach.
As the world of business is never short of new innovations, VCs require a large amount of liquid capital to capitalize on investment opportunities. This requirement, coupled with equity lock-up terms and growing levels of inflation, means VC firms have to juggle diverse portfolios of liquid and illiquid assets.
Crypto VCs and SAFT (Simple Agreement for Future Tokens)
In the cryptocurrency space, equity comes in the form of tokens. Entrepreneurs mint a large number of tokens on any given blockchain and distribute them to potential investors or users. Project teams looking for financial assistance in the early stages can collaborate with VCs and accredited investors through a SAFT agreement which serves as an important legally-sound bridge between the financial industry and the growing cryptocurrency market
As SAFTs are legally binding to a single party or entity, they are often traded under the table with no guarantee if a party wishes to liquidate, which opens up the opportunity for risk and losses. Currently, there is no single public or open marketplace for trading SAFTs, and accredited investors are more willing to enter into such an agreement without fear of being scammed or cheated if this were available. The downside, however, is that the terms of the SAFT are defined and legally enforceable. This means that money locked up via SAFT is unable to be removed, and for investors, gains cannot be rolled into other potentially higher-return investments.
Accessifi Solves Liquidity Problems with SAFT NFT
For VCs and accredited investors, Accessifi is the easiest place to generate and interact with comprehensive SAFT agreements. By following an extensive rubric, project owners can draft their own legal documentation without having to seek expensive professional help.
The biggest game-changer, however, is in the minting and sale of SAFT NFTs. SAFT agreements generated on or uploaded to Accessifi also mint an NFT version of the SAFT. From there, the NFT can be turned into tranches and sold on the Accessifi SAFT NFT marketplace. Tranche SAFT NFTs are priced using a complex oracle that pegs the price to that of the value of the underlying asset — the SAFT.
Through this process, not only are accredited investors able to unlock their locked liquidity, but retail investors can gain access to premium investment opportunities in quality early-stage blockchain projects.
Safe and Easy to Use
With extensive experience in the setting up of and dealing with traditional SAFTs, the Accessifi team has compiled a formula to automate the entire process. Users follow a step-by-step framework to generate their own customized agreements and mint representative NFTs for sale. The platform’s back-end is built on a trusted tech stack of Web3 infrastructure with no internal server, meaning there are no privacy or censorship issues.
Firms with preexisting SAFT agreements can also choose to upload their documentation to the Accessifi platform in order to mint NFTs and tranche them out to retail investors. This process requires authorization from both investor and project team, who each upload their version of the agreement in order to verify its authenticity.
Solving Paint Points
Accessifi is built in line with the DeFi movement’s goal of allowing more and more people around the world access to the global economy. Accessifi solves the pain point of traditional early-stage investments wherein usable liquid funds are scarce as a result of lock-up agreements. Accessifi creates instant liquidity without having to sell equity and, as a result, is an ideal hedge against volatility. In terms of increased access, Accessifi gives retail investors the unprecedented option of purchasing a portion of a SAFT, something that was not possible before now.
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The content above is neither a recommendation for investment and trading strategies nor does it constitute an offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.