Blockchain: Democratizing Access to Innovation

Abstract

Alternative assets, such as those of Venture Capital, have traditionally been exclusive to institutional investors or high net worth individuals (HNWI). However, when it comes to retail investors, such asset classes are almost impossible to access. This is due to two main reasons: significantly large capital commitment required by VC funds, and a long investment holding period required with no liquidation option or secondary market. This academic paper explores how distributed ledger technology can revolutionize the Venture Capital industry and democratize access to innovation. Setting up a blockchain-powered tokenized fund creates a win-win solution where Venture Capital funds have access to untapped capital from individual investors, who are eager to invest in an asset class they were traditionally excluded from.