Swarm Fund, the blockchain for private equity, today unveiled the first two funds running on its network, and confirmed the on-track timing of its initial product release date, set for Jan. 29.
At launch, members of the Swarm will have the ability to invest in the platform’s Distressed Real Estate and Silicon Valley Coin funds to create new, asset-backed crypto currencies. For large crypto holders, investing into asset-backed tokens provides a way to mitigate volatility in the crypto markets.
“This launch validates the intelligent tools and decentralized infrastructure we’ve built to make it easy for people to participate in the wealth creation generated by crypto and alternative assets,” said Philipp Pieper, CEO and co-founder of Swarm Fund.
“Run by seasoned, highly-respected experts in their fields, these exciting fund opportunities will allow members of the Swarm to access institutional-style investing, without the high investment minimums and long-term investment horizons typical of the space.
“It’s the exact reason we built Swarm, to democratize the world of high-return, institutional investing for a broader range of investors, while giving fund managers access to an untapped capital stack.”
The platform’s Distressed Real Estate fund uses artificial intelligence and workflow automation to identify and automatically bid on homes in bankruptcy nationally. Run by Silicon Valley veteran entrepreneur and investor Tim Jemison at NIAH Capital, the fund’s target is to raise the equivalent of up to $10 million USD to deploy into distressed real estate assets nationwide.
“Swarm opens up an opportunity for us to raise additional capital in an industry that has largely been closed off to individual investors,” said Jemison. “It’s a different model in the distressed real estate space.”
Late-Stage, Pre-IPO Technology Investing
The platform’s Silicon Valley Coin fund will capitalize on high-quality, late stage technology companies that are still pre-IPO, utilizing the fund management team’s strong network of entrepreneurs, investors, lawyers and bankers to gain access to top-tier investments.
Managed by Andra Capital and led by veteran Silicon Valley technology investor Haydar Haba, the fund’s objective is to raise up to $250 million to seize upon high-growth, shortened-time frame opportunities in the technology space.
“We are extremely excited to deploy Silicon Valley’s first cryptocurrency-powered technology fund,” says Haba.
“The Andra Capital team and I are true believers in the transition to the ICO model of funding and the platform Swarm is building. We are not only willing to back it with our own cash, but with a full integration between our platforms, and the new generation of ICOs that Swarm represents.”
Under Swarm’s three-tiered token model, members of the Swarm can exchange crypto or fiat for Swarm SUN tokens, which can then be used to invest in the funds on the platform.
When they do, those SUN tokens convert into intelligent, SRC20 security tokens for each opportunity, effectively giving the holders a tokenized version of the real-world assets behind the investment. A portion of the capital placement will be used to purchase SWM tokens as Gas for operations on the Swarm platform.