The Waves Platform, a Moscow, Russia-based developer of a global public blockchain platform, is launching a new blockchain venture capital vehicle.
Led by Waves Founder and CEO Alexander Ivanov, who will act as a key advisor and principal, the Basics Fund will hold a diversified portfolio of crypto assets, alongside professionals in the venture capital industry. The fund is dedicated to investment in blockchain infrastructure and combines the best of venture funds and hedge funds — investing in a diversified portfolio of promising startup projects in the blockchain space.
Assets and activity will include established crypto-assets and pre-sale ICO tokens, as well as arbitrage and event-oriented trading.
Whilst the Basics Fund has similarities to classical venture capital funds, the emphasis on blockchain solutions means there are a number of key differences. First, token transactions are fast and low-cost, compared to those in VC funds, which can take months to complete and be subject to high fees. Additionally, exits in blockchain projects may be secured after as little as two months, with tokens benefiting from high liquidity — in contrast to the illiquidity of most VC funds.
In addition to Ivanov, the fund, which will take the form of a Cayman Islands GP/LP Venture fund, will be managed by Maxim Kuzin, a highly experienced asset manager. An initial $10 million in investment is sought for January 2018, with a total of $30 million by April.