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Interview with Ayush Khanna COO, LaborVoices, Inc.
Can you introduce yourself and your role in 22x Fund?
My name is Ayush Khanna, and I’m the Operations Lead at 22X Fund, and Co-Founder at LaborVoices, one of the portfolio companies. I am one of the founding members of the team, and am responsible for planning and coordination, as well as community management.
22x Fundis a collection of startups which are seeking seed capital – What is the common factor between these startups?
All of the startups went through Batch 22 of the 500 Startups Seed Accelerator program. 500 Startups is a well-known Silicon Valley VC with a <2% acceptance rate for the Accelerator. While at the program, some of the Founders got together and came up with the idea for creating a diversified fund tied directly to equity in each of the startups.
Will the 22x Fund invest only in these 30 startups, will the fund diversify further?
22X Fund investments are limited to the listed companies. It is possible, even likely, that some of these startups will participate in future token offerings on their own.
What selection process did the 22x Fund apply to the startups?
As mentioned earlier, 22X Fund is a Founder-led idea. All members of Batch 22 were able to opt-in to the fund.
Generally, at what stage are these startups?
All of the companies qualify as Seed-stage startups. About 80% are post-revenue, and all of them have raised some outside Venture Capital already, ranging from a couple hundred thousand dollars to a couple million dollars, including an investment from 500 Startups.
How close to sustainable cash flow are some of these startups?
As Seed stage startups, all of these companies do not have significant burn rates. About a quarter of them are at or near sustainable cashflow, though this question isn’t fair to some of the more capital intensive hardware/health tech firms in the portfolio as they have higher setup costs.
What are the ICO dates?
We are currently in the presale.
What are the investment minimums?
US investors can get involved at a $100K minimum for the presale and $50K for the general sale.
International investors can get involved at a $10K minimum for the presale and $5K for the general sale.
Since we are a security token, all investors need to meet KYC/AML requirements, in addition to an accreditation check for US investors.
What are the prices for the tokens during the pre-sale and sale?
The exact price of the token will be calculated at the end of the full sale. There is a hard cap of $35M on the sale. The full bonus schedule is as follows.
Early Investment Bonus Schedule:
$0M – $10M raised —> 15% bonus
$10M – $20M raised —> 10% bonus
$20M – $30M raised —> 5% bonus
$30M – $35M raised —> 0% bonus
Investment Amount Bonus Schedule:
$1M+ —> 15% bonus
$500K to $1M —> 10% bonus
$100K to $500K —> 5% bonus
< $100K —> 0% bonus
Bonuses are additive (i.e. $1M invested within the first tier = 30% bonus)
How will the ICO proceeds be divided?
At the end of the sale, every startup will receive up to $1M in fiat, in exchange for up to 10% equity, depending on the total amount raised.
Is the funding in the form of equity or debt?
Investments in 22X Fund are tied directly to up to 10% equity in the startups, depending on the amount raised.
What communication can investors expect from the 22x Fund after the ICO, on the fund and individual startups?
Investors will receive quarterly updates from fund manager, featuring highlights on progress made by each startup, as well as, fund highlights and tradability.