Latest posts of: filipeandre

VENTURE INTO SPORTS

-THE WHY-

Democratize Sports Investments and improve fund performance metrics. At SportVEST we believe in the transformational opportunities provided by blockchain technology and have set out to disrupt the “exclusive” nature of the venture capital sector and sports investments. Our mission is to empower a broader audience with improved VC measurement tools while bringing liquidity to investments in the sports sector so it is at the Token- holders discretion to decide the optimal time to take profits.

-THE HOW-

SportVEST Venture Fund (the “Fund”) will divest the Token-Sale proceeds over a period of time - investing in a portfolio of diversified sports businesses that operate both on or off the blockchain (“Digital Assets”) with all potential investments being approved by the Fund’s Advisory Board.

Through the use of blockchain technology, SportVEST captures the value of our sports Fund using a Token that is publicly tradable. The values of the Portfolio Companies who constitute the Fund are continuously assessed based on an innovative approach utilizing token micro-sales “Power Law Sales” providing us with a stream of market value based estimates, along with our Brand Equity Algorithms and NAV measurements to provide a basis for the most accurate valuation of these Portfolio Companies. Our valuation Algorithm is a multi-factor estimation algorithm that can learn and adapt within a band around these more formal estimates and adjust based on Kalman Filters to mitigate errors and some of the flaws in human judgement currently in VC NAV models.

-THE WHAT-

“Venture into Sports”: SVE Tokens are issued by Global Sports Inc. (the “Company”) and the Fund will form the legal vehicle that invests in blockchain and non-blockchain sports startups, legally compliant ICOs and/or tokens (“Coins”), by using smart-contracts to create the Fund (the “Portfolio”).

SVE Token-holders will own a pro-rata percentage of the Fund’s portfolio and are therefore considered Limited Partners (“LPs”), with SVE Tokens forming the digital counterpart.

SVE Tokens can be purchased through our Token-Sale at various stages (using crypto or fiat currency) and will be able to be exchanged (traded) in the future on secondary exchanges after the one-year “Vesting Period” (SEC- mandated), providing SVE Token-holders with liquidity regardless of their location.

If the market valuation of the SVE Token is below the external marketplace price, SportVEST will buy and burn SVE Tokens until the public SVE Token price is above the internal exchange rate for the Token. We thus say SVE Tokens are strongly backed by assets but have an upward potential. Over time, the payoff of successful investments will increase the Fund’s investment potential. The SVE Token will appreciate in public marketplaces in response to raising internal exchange rates.

SportVEST has committed a portion of our profits and fundraising to fund the SportVEST Foundation (the “Foundation”) based on specific thresholds. The Foundation will focus on blockchain research and development (“R&D”), community building and support of non-profit sports businesses on the blockchain.

Why Blockchain?

Tokenizing the VC model on the blockchain opens up the market. SportVEST creates a crypto-economy with the value of SVE Tokens bound by a floor price that is responsive to changes in the valuation of the Fund’s portfolio. As a Portfolio Company marches toward a successful exit, it drives up the value of SVE Tokens in the expectation of additional cash being available for investment from the exit of the Portfolio Company. This increased valuation will be supported by the raising of the internal exchange price for the same market forces.

Creating and utilizing SVE Tokens provides a number of strategic advantages:

By using smart-contracts to create the Fund on the Blockchain, SportVEST relies on distributed nodes to guarantee that transactions are processed “on-chain” so no one has the ability to alter the effects of a transaction.

Creating an investment portfolio can be costly, complex and time-consuming - with hundreds of sports investments to choose from in a rapidly growing $480Bn+ (USD) market. At SportVEST we do all the work for you! By holding SVE Tokens, you will get exposure to the Fund’s underlying sports investments, which reduces your risk from investing in a single sports startup or ICO.

By allowing market forces to help set prices of Portfolio Companies made possible via the blockchain and Power Law Sales, we take a more neutral role in the valuation of these companies. Valuations are made based on observations of market prices, the strength of brand equity and the NAV. Our proprietary “Power Law Valuation” method and “Brand Equity Algorithm” are immune to subjective judgment and human bias, with the Kalman Filter factoring in error rates in the NAV to further protect Token-holders in the Fund.

We strive to adhere to all applicable regulations and legal guidelines and will file the offer and sale of SVE Tokens with the SEC, under Regulation D and Regulation S of the U.S. Securities Act. All Purchasers (regardless of location) are required to pass through the Know Your Customer (“KYC”), anti-terrorism and Anti-Money Laundering (“AML”) procedures in order to comply with regulations. We have partnered with Identity Mind (and other leading identity solution providers)

This includes a universal one-year Vesting Period required to comply with the SEC regulations, which incidentally comes with the benefit of providing adequate time for the Fund to find solid investment opportunities and maximize the value of the SVE Token before it officially launches on secondary exchanges.

Following the Vesting Period, SVE Tokens will begin trading on the public crypto exchanges that act like stock exchanges that will set the price of SVE Tokens by matching buy and sell orders. This provides a liquidity option to SVE Token-holders to exit early compared to 5-10 years in traditional VC funds, and also has the potential to increase the Internal Rate of Return.

Each time a SportVEST Portfolio Company has a successful exit, it will add capital and new investment opportunities to SportVEST’s balance sheet, thus appreciation on the balance sheet and in turn will increase valuation and increase the SVE Token price.

The SportVEST smart-contract also provides SVE Token-holders with the option to sell their SVE Tokens directly to SportVEST using a discounted valuated price of the portfolio. While the market perceives the investment strategy of SportVEST as sound, the price on the external market will always be greater than the price on the internal marketplace of SportVEST. If SportVEST buys back SVE Tokens, these will be burned and thus increase scarcity and stability of the SVE Tokens.

How Does this Impact the Token-holder? SVE Tokens are backed by SportVEST cash reserves and unspent commitments to Portfolio Companies. The Token-holder thus has a portion of their Purchase Amount recoverable even under an extremely adverse downturn. On the other hand, with continued good investment, the value of the SVE Token in the external exchange rate, which is engineered to always to be above the internal exchange rate, would be expected to grow geometrically over 5-7 year cycles.

If SportVest is ever called on to act to support the internal exchange price, it would first use cash reserves to buy back and burn SVE Tokens as stated; if cash reserves are exhausted in an extreme case, SportVEST will buy back SVE Tokens using non-distributed investment earmarked to Portfolio Companies starting with the worst performer and moving up in turn until finally liquidating funds earmarked for the best performers. This is similar to a semi-automated process that would sweep out under-performers but would not impact strong performers.

Each iteration of the buy and burn cycle will increase the scarcity of the SVE Token and hence increase its value. A relatively small buy and burn cycle should raise the price of the SVE Token and induce its’ climb back up above the floor price.

Overall, this provides investment value protection for SVE Token-holders. The SVE Token price is guaranteed to stay above a perpetually rising floor price that is calculated to be a small discount off the calculated valuation of the portfolio.

The SportVEST Community will be Represented on the Fund’s Advisory Board. Every year a vote will be cast to nominate one SVE Token-holder to join the Fund’s Advisory Board for a period of one-year. The nominated individual will represent “the voice” and the interests of all SVE Token-holders to ensure further transparency.

SVE Token Price

The SportVEST (SVE) Token price is fixed at: $1.10 U.S Dollars (USD) = 1 SportVEST (SVE) Token. Purchasers using Great British Pounds (GBP) and Euros (EUR) should refer to XE for exchange details. Purchasers using Ethereum (ETH), Bitcoin (BTC) or Litecoin (LTC) should refer to CoinMarketCap for exchange details.

SVE TOKEN RESALE RESTRICTIONS & VESTING PERIOD

There are certain resale and transfer restrictions relating to SVE Tokens which affect all SVE Token-holders.

Transfer & Resale Restrictions:

In order to comply with the U.S. securities law and SEC guidance, any U.S. Persons purchasing SVE Tokens from the USA will be required to hold their SVE Tokens for one-year following the issuance of the SVE Tokens and will not be able to sell their SVE Tokens on secondary exchanges until the first anniversary of the issuance of the SVE Tokens (the “Vesting Period”).

SportVEST believes in the principle of equal treatment of all Token-holders and therefore the Vesting Period will also apply to persons purchasing SVE Tokens as Non-U.S. Persons from outside the USA, who will also be required to hold their SVE Tokens for one-year following the issuance of the SVE Tokens and will not be able to sell their SVE Tokens on secondary exchanges until the first anniversary of the issuance of the SVE Tokens.

Employee & Advisor Tokens:

The Vesting Period described above will equally apply to SVE Tokens issued to SportVEST Employees and Advisors. Additionally, following the completion of the Vesting Period SportVEST Employees and Advisors will be only be entitled to sell a maximum of 10% of their SVE Tokens per annum.

BOUNTY PROGRAM

Bounty program will be available shortly. The bounty campaign will be announced on our official community channels

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