SpaceFund Introduces Blockchain-based Security Token

On October 29, SpaceFund Inc made history by launching the world’s pioneering space security token. The venture capital firm intends to use blockchain technology to finance promising space technology startups.

The SpaceFund team is made of experts from both space and blockchain industries. The firm’s top brass boasts of individuals with vast experience in leadership positions in top investment companies. This includes the founder of the world’s most popular space business plan competition and several leaders of tokenization.

Rick Tumlinson, a founding partner of SpaceFund, noted that the objective of the company is to support the creation and profitability of innovative space startups from all over the world. Rick mentioned that the space industry is undergoing a revolution, citing the billions invested in the sector by billionaires Jeff Bezos and Elon Musk. He further added that SpaceFund is willing to support visionary entrepreneurs.

Security tokens are digital assets that leverage the immutability of blockchain ledgers. Fundamentally, security tokens are the digital alternative to hardcopy share certificates. They have the upper hand over paper shares because compliance is inbuilt. This prevents the occurrence of unauthorized trades beforehand. To this end, David Johnston, the CEO of Yeoman’s Capital, said that they will partner with SpaceFund to transform the way people invest in the space industry. Yeoman’s Capital is a partner to SpaceFund that has established over 30 firms in the blockchain industry.

Although Bitcoin came into the fray a decade ago, its effect on the financial sector was accentuated during the bull market of 2017. The blockchain revolution has now spread to other sectors, including the space industry. However, startups in the space industry are challenged by the lack of capital. SpaceFund intends to deploy fund tokenization to solve this problem and grant investors an opportunity to own stakes in promising startups in the space industry. The firm will combine the advantages of blockchain technology with the traditional venture capital model to reduce the risks by investing in several businesses.

Meagan Crawford, a managing partner at SpaceFund, believes that the tokenization of a venture capital fund that deals with space industry startups lowers the entry barriers for most investors. This is because it provides liquidity as well as diversification of investments. Meagan is assured that the introduction of blockchain technology will provide a lasting solution to the issues facing space startups.

Initially, the SpaceFund security token will be exclusively available to accredited investors residing in the United States. The token will be traded in accordance with the regulations provided by the US Securities and Exchange Commission (SEC). Later on, the SpaceFund tokens will expand their scope across the world, subject to the enactment of international legal frameworks. SpaceFund is working with Smart Valor, a Swiss-based company, to develop expansion strategies that incorporate investors from all parts of the world.

Olga Feldmeier, the CEO of Smart Valor, noted that,

“Various governments are drafting laws for tokenization. Oleg added that his company has a global outreach of investors that are compliant with these regulations. Therefore, their partnership with SpaceFund will ensure that the venture capital firm can easily set up business in overseas countries.”

The issuance and administration of the SpaceFund security token will be overseen by Abacus. According to Pradyuman Vig, the CEO of Abacus, the company is equipped with the infrastructure to facilitate the secure, seamless and efficient distribution of SpaceFund tokens.

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