Andra Capital raises up to $500m for its tokenised investment fund

Andra Capital has raised up to $500m for its late-stage blockchain technology growth fund.

The vehicle is tokenised with blockchain technology to open it up to more global investors. The firm is looking to raise $1bn, and has received commitments from global, traditional investors, institutions, hedge funds, family offices, individuals, token holders, and alternative investors.

Andra is looking to change the venture capital market by using its regulatory-compliant Silicon Valley Coin. Global investors acquire these tokens in-exchange for an ownership stake in the investment vehicle. The token is a security token that is backed by legally-registered securities in private companies.

Investors in the vehicle can either choose to keep their tokens and receive returns on investments made by Andra’s fund, or they can trade the tokens with of eligible purchasers.

This tokenised method helps to open the fund to more investors but also reduces risk, increases flexibility and lowers investment periods.

Andra Capital managing partner Hermann Liu said, “We’re seeing great traction among the institutional and token investors alike. They’re attracted to the fact that our ‘Silicon Valley Coin’ is secure, generally transferrable, and asset-backed.

“The value of our coin is tied to the Fund’s investments as each token represents a unit of interest in the Fund. Perpetually evergreen, the Andra Fund is always increasing in value and growing in AUM size.”

Earlier in the week, venture fund and co-creation firm The Hive closed its third vehicle on $26.5m to support the growth of seven startups.

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