Frequently Asked
Questions
How were the companies chosen?
All 22X Fund companies are part of Batch 22 from 500 Startups which took place in San Francisco in summer/fall of 2017. The 500 Startups Accelerator has a ~2% acceptance rate. The majority have raised previous funding and are revenue generating.
What are investors receiving in return for purchasing 22X tokens?
Investors receive tokens in 22X which will own between 2.5% to 10% of the equity in each 22X portfolio company. The final amount of equity owned by 22X will be determined by the amount raised by 22X.
How much is the fund raising?
The target is $35M USD.
Who decides how much each company gets?
Companies receive the same amount of money for the same valuation based on how much in total is raised by 22X.
Is there money set aside for follow-on investments into these companies?
No, there is not.
What was the valuation?
Every company in which 22X invests will have the same valuation of $10m USD (post-money).
How is 22X compliant with SEC laws?
22X is a private fund that is being offered pursuant to Section 506(c) and is reliant on available exemptions under the Investment Company Act.
Who is the Investment Advisor for 22X?
Securitize Capital LLC, a wholly owned subsidiary of Securitize Inc., is the investment manager to the Fund and will file with the relevant regulatory in California as a private fund exempt adviser.
Can 22X tokens be traded?
Yes. To comply with various securities laws, US token holders will have a lock-up period of 12 months, after which the token can be traded subject to certain registration and AML/ KYC requirements. Outside of the US, the token can be traded by Non-US people subject to certain securities laws and country-specific considerations.
Can anybody invest in this like a typical ICO?
The fund is limited to 100 U.S. accredited investors. Internationally, limits on investors from each country will be imposed by securities laws in each country.
What is the minimum investment?
Minimum investment in the United States is $100k in the pre-sale and $50K minimum investment in the main sale.
Minimum investment for investors outside of the United States is $10K in the pre-sale and $5K in the main sale.
Are there bonuses available?
Yes, there are two potential bonuses. One is based on timing of the investment and the other is based on the investment amount.
Bonuses are additive (i.e. $1MM invested within the first tier = 30% bonus)
How do investors get returns?
Investors can hold the 22X token and receive proceeds from liquidity events for the companies in the portfolio. Or they may sell or trade the token subject to compliance with securities regulations and other applicable rules.
How is this different from a typical ICO?
22X is a security token offering backed by real assets i.e., equity investments in Silicon Valley's top companies. It’s an opportunity for investors to get a token that appreciates in value as companies mature with a clearly defined underlying asset structure.
How can people be sure the token is secure?
22X Fund will only ever ask you for funds through the dashboard. The dashboard application is deployed in an enterprise grade data center and sits behind several layers of security. The dashboard application itself has been independently penetration tested. Moreover, even if the dashboard application were compromised, BTC and ETH funds are sitting in cold wallets while fiat funds are sent directly from your bank to ours. No funds are ever accessible via the dashboard or on the internet.
What is the process for buying 22X tokens with BTC or ETH?
For BTC and ETH, you send the funds to a unique address that we provide to you. At this point there is no smart contract involved, so we are relying on the raw Bitcoin and Ethereum protocol only. By now, we think it's safe to consider that the two protocols have been proven to be extremely resilient to attack in the wild (the “bounty” on both the Bitcoin and Ethereum protocols as of the time of writing are around $220 and $70 billion, respectively, so we can assume that the protocols are reasonably secure). What this means is that BTC/ETH security boils down to whether or not the private keys for each address are compromised. The private keys for the receiving addresses are stored completely offline in a multi-sig escrow service. Therefore there is no need to worry about funds being compromised in a smart contract at the point of funding provision.
Subsequent to the sale close, we will then issue ERC-20 tokens commensurate with the funds provided and the total amount of tokens outstanding. This will be a fairly simple ERC-20 contract that is designed to provide tokens equivalent to the right to dividends in the underlying 22x Fund as well as eventually the right to trade these tokens once they become liquid. The token will correspond to a token wallet to which you hold the private keys.
Who do I contact if I want to do a story on 22X?
Official communications channels are:
- Website: www.22Xfund.com
- Twitter: @22xtoken
- Telegram: community22x
- Press: press@22xfund.com
- Investor deck, Roadmap, and other documents: Please register on the website to view investor information.
22X is a private fund offering for accredited investors in the United States and abroad. Investing is limited by individual country regulations. Please contact the team to learn more about the offering.
NOTE: THIS TOKEN IS NOT BEING OFFERED BY 500 STARTUPS (OR ANY OF ITS AFFILIATED ENTITIES OR FUNDS). 500 STARTUPS DOES NOT ENDORSE AND IS NOT INVOLVED IN THE TOKEN OFFERING IN ANY WAY AND UNDER NO CIRCUMSTANCES SHOULD SUCH OFFERING BE INTERPRETED AS AN OFFER TO SELL OR A SOLICITATION OF INTEREST TO PURCHASE ANY SECURITIES OR INVESTMENT ADVISORY SERVICES BY ANY 500 STARTUPS ENTITY. 500 STARTUPS HAS NOT VERIFIED ANY OF THE INFORMATION OR REPRESENTATIONS CONTAINED HEREIN, AND BY VIEWING THIS WEBPAGE, THE VIEWER AGREES THAT 500 STARTUPS BEARS NO LIABILITY FOR ANY MISSTATEMENTS OR INACCURACIES CONTAINED HEREIN.
This site is not intended to be an offer to sell, or a solicitation of any offer to buy, any security or other financial instrument or to invest in the token issued by 22X (“22X Token”). The offering of the 22X Token has not been registered, qualified, or approved under any securities, futures, financial instruments, capital markets, or exchange control legislation, regulation, or ordinance of any jurisdiction. In all jurisdictions, any offer to sell or solicitation to buy a 22X Token, when made, will be directed solely to qualified institutional investors, qualified professional investors, and those other sophisticated persons to whom offers and solicitation may be made without any licensing, registration, qualification, or approval under applicable law. Before you decide to invest in a 22X Token, you should carefully read the 22X offering documents and consult with your own advisors. An investment in a 22X Token is speculative and involves risks, which you should understand prior to making an investment. The private placements of 22X Tokens have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and the 22X Tokens are being offered pursuant to an exemption from registration provided by Rule 506(c) of Regulation D under the Securities Act and in reliance on similar exemptions under applicable state laws. An investment in 22X is suitable only for sophisticated, well-informed investors, and investors will be required to represent that they are accredited investors as such term is defined in Rule 501(a) of Regulation under the Securities Act.
Acceptance rate source: https://www.forbes.com/sites/paulinaguditch/2017/05/30/get-into-a-top-startup-accelerator/#798d2a47725f
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