SpaceFund Inc., announced today the world’s first space security token. The Texas-based venture capital firm focused on using new blockchain technology to fund ‘frontier enabling’ space technology startups.
SpaceFund features an insider perspective on the NewSpace industry, with a pragmatic blend of technologists, investment experts, and business leaders across both space and blockchain communities. The company’s management team also includes general partners who run successful investment portfolios with dozens of companies under management, the founder of the world’s longest-running space business plan competition, and leaders of tokenization.
“SpaceFund’s goal is to support the development and profitability of amazing new space startups around the world. With Jeff Bezos, Elon Musk, and others investing billions into a space economic infrastructure, a revolution is underway in space. We want to allow more visionary people to get involved, to support the entrepreneurs opening space to humanity, and to share in the wealth it will create. This offering is both a giant leap and a first step in that direction.”
Security tokens are simply a digitized form of asset ownership, utilizing the reliability of the immutable shared ledger system, or blockchain, that is currently revolutionizing the world of finance. Essentially ‘digital stock,’ security tokens are a new form of digital financial technology replacing paper share certificates and providing significant benefits in how assets are held, traded, and audited. Security tokens also have built-in compliance, preventing unauthorized trades before they ever happen.
“This is a match made to open the heavens. Yeoman’s has started over 30 companies in the blockchain space, and we are applying that knowledge and network to SpaceFund. Together we are going to change the way people invest in space.”
10 years after the white paper that started bitcoin, there is a revolution underway to open the world of finance to a much wider number of people. There is also a revolution underway to open the Solar System to all the people of Earth. While larger companies such as SpaceX and Blue Origin are well-capitalized, the startups that will both open the frontier and develop products in space to change lives down here, still need investment.
However, space has historically been an inaccessible asset class for most investors. Through fund tokenization, a wide pool of investors will finally have an opportunity to gain exposure to exciting startups in the space industry, even while they are still privately held. SpaceFund has coupled this new financial technology with a traditional venture capital structure that mitigates risk through both diversifying investor interests across dozens of companies and providing the expertise to choose the most high-growth and high-value projects.
“Tokenizing a space-focused venture capital fund removes major barriers for investors, providing them with liquidity and diversified exposure to exciting startups, while also providing those startups with the long-term support they need to succeed. This is the missing piece to solve the NewSpace financing puzzle – connecting the world’s capital with those who will lead us to new worlds.”
To begin, the SpaceFund security token is available to accredited US investors, working within the American Securities and Exchange Commission (SEC) guidelines. Then, as acceptable international legal frameworks are developed, SpaceFund security tokens will expand to include and allow investors from around the world. To enable this to happen, SpaceFund is partnering with Swiss-based Smart Valor to develop international expansion strategies enabling investors to participate in the fund in the most efficient and scalable way.
“A diverse set of regulatory frameworks for tokenization is rapidly developing in various jurisdictions around the world, while investor acquisition costs are growing quickly. SMART VALOR has the platform and knowledge to efficiently reach a broad base of international investors in full compliance with these regulations. Our partnership will ensure that, once the time has come, SpaceFund will follow the fastest path to secure investments from abroad.”
To ensure compliance and manage transactions, SpaceFund has also partnered with Abacus to handle the issuance and ongoing administration of its security token.
“Tokens do 3 things for space; soften liquidity issues, simplify transactions, and create regulatory transparency. Abacus has the technology and team to make the tokenization process smooth, seamless, and safe for all involved. Together, the SpaceFund team is well suited to run the first space venture fund that tokenizes on the blockchain.”