This is a guest author post, provided by the team at HACK Fund, for information about HACK Fund visit
Meet HACK Fund, the latest funding venture from the Hackers/Founders Team.
Read more Media pieces .
HACK Fund decentralizes and democratizes venture capital by raising money through a security token offering (STO).
is the fifth fund by . Their previous four funds have delivered an IRR of 30% the last five years across 55 companies who have raised over $100M and have had 7 exits.
, the managing director of HACK Fund served on an SEC advisory committee on capital formation, and it was that experience that led to the creation of HACK Fund and led them to raise by STO.
Press
The problem with traditional venture capital is that investors only make money when the portfolio companies get sold to a Big Tech Co, or IPO. And, when most of the world tech acquisitions happen in Silicon Valley, most of the world venture capital is centralized there.
By issuing an STO, HACK Fund democratizes venture capital and allows thousands of smaller investors invest into some of the world’s top technology companies. And, since HACK tokens are tradable, HACK Fund can invest in amazing tech companies anywhere in the globe without worrying if the startup holds an IPO or is acquired by a tech giant like Google.
The startups HACK Fund come from Hackers and Founders’ massive global community of tech entrepreneurs who are only selected for investment after they go through a peer review, investor interviews and due diligence. We focus heavily on technology companies that have real customers, real revenues and aggressive growth.
Partners
HACK Tokens are based on the Ethereum ERC-223 standard and act like digital stock certificates. Aggregate valuation of the companies in the fund is performed quarterly by a third party, after which the results are published for all investors. The token’s value comes from the price of the startups it invests in, rather than the fluctuations of the crypto markets.
So in order to make it easier for investors of all types to join in, HACK Fund decided to team with up with BRD. BRD Secure Checkout is now on the HACK Fund dashboard and provides users all the tools they need while guiding them through every step of the sale so that they can become HACK Fund investors.
HACK Fund recently inked a partnership with Vodafone procurement to invest in 15 companies a year that they will work to scale to $100M a year in revenue across 100+ partner telcos and 1.2 Billion customers globally.
To participate in HACK Fund, visit or email hack@hf.cx to learn more. Check out our . Open to investors worldwide and a limited number of accredited US investors.
The information provided on TokenMarket.News is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor, attorney or other professional to determine what may be best for your individual needs. See our for more.
For the past many months, the U.S. Securities and Exchange Commission (SEC) has been working on different plans to introduce clear guidelines for ICOs. Furthermore, the SEC officials have long argued of giving ICO tokens the status of securities. However, nothing concrete has materialized yet so far.
On Monday, SEC’s director of Corporation Finance said that the agency will soon announce clear guidelines. These guidelines will give a clear picture of how ICO tokens can be classified as securities. SEC director William Hinman, while speaking at the D.C. Fintech Week Conference, said that the regulator will release a “plain English” guidance for developers. Hinman says that it will help them determine whether their token-offering can classify as security or not.
“We also will be putting out more guidance, the idea is a plain English instrument that people can look at and they’ll bring together sort of my Howey-meets-Gary speech, and that analysis … We’ll elaborate on that in a very plain English way, so ‘do I think I have a security offering,’ look at that guidance and you should be able to sort things out,” said Hinman.
Working in Coordination With SEC’s FinHub
Just a few days back, the SEC announced a Strategic Hub for Innovation and Financial Technology (fintech), dubbed . The FinHub acts as the central point of contact between the developers, crypto entrepreneurs, and the SEC. Hinman said that before new token offerings, developers can also seek help from the FinHub. The platform will help to clear all doubts relating to securities and security offerings.
Hinman added:
“Once you determine whether you have a security, we’re going to have in that guidance, ‘how do I go about registering’ and ‘how do I go about doing an exempt offering.”
Some of the major issues which the SEC looks forward to addressing include custody, accounting and token valuation. Furthermore, the SEC’s guidance on token offerings in the primary market can also resolve issues relating to secondary market transactions. This will also give developers some insight into how the regulator will treat their tokens post the ICO listing.
The SEC director notes that considering factors like expectations of a return on investment, the agency will decide if the token sale classifies as securities or not:
“If someone’s offering an instrument for money or other consideration to a third party, and that third party expects the offerer to generate a return or so something that will increase the value of the coin or token or whatever they want to call it, and there’s that expectation of return, we’re generally going to see that as a securities offering.”
Crackdown on Illegal ICOs
In the fiscal year ending September 30, the SEC has shut down several illegal ICOs as reported in the agency’s . A dedicated Cyber Unit of the SEC Division of Enforcement has helped the agency to focus on ICOs cyber-related misconduct.
The report notes that “the SEC’s enforcement efforts impacted a number of areas where the federal securities laws intersect with cyber issues,” this year. Moreover, “the Commission brought 20 standalone cases, including those cases involving ICOs and digital assets,” it reported. By the end of the fiscal year, “the Division had more than 225 cyber-related investigations ongoing.”
