HackVc : A Liquid Venture Fund on The Blockchain

HACK fund is a liquid fund on the blockchain. HACK token is the Ethereum-based token issued to investors.

Hackers/Founders (H/F) is an organization that has been investing in top startups through an expansive global network. H/F’s portfolio of fifty-five technology startup companies has produced seven exits in only five years, including acquisitions by Facebook and Cisco.

Hackers/Founders (H/F) created HACK to bring its successful approach to the blockchain, increasing accessibility and liquidity for investors.

What is HACK?

The HACK Fund is a venture fund created by Hackers/Founders (H/F) that uses blockchain technology to provide accelerated liquidity to investors. Money raised during the token sale will be invested in top technology companies scaling globally.

Why HACK ?

HACK uses blockchain technology to make startup investing available to people around the

world and who are at all levels of investing.

Those who want to get involved in supporting tech startups can do so without having a high income. The cost of 1 HACK token is $1 USD, and during the token sale, this minimum gains the holder entry into the fund. Also, investors can profit from startups that, up to now, would have been neglected because they are located in areas of the globe that are harder to reach due to regulations, markets, and other factors. Because blockchain technology is decentralized, capital which might have been left on the table can now be used to increase value for investors.

HACK also offers risk diversification. Until this moment, it has been nearly impossible to get exposure to a diversified portfolio of startup equity without having a great deal of wealth. Most importantly, HACK is liquid, and offers investors the ability to realize gains without having to wait a decade.

Hackers/Founders, creator of HACK, has run a proprietary startup program that yielded growth of 30% year over year for the past five years, and has had seven exits out of fifty-five companies from around the world.

In addition, the H/F team will be contributing $1 million worth of stock from existing H/F Funds 1 through 4, so that investors can buy into HACK without having to wait for the fund to acquire strongly performing assets.

HACK Token

HACK is a new Ethereum-based token issued by HACK fund, and can be bought, sold and traded through online exchanges as a liquid transaction.

HACK is based on the ERC223 protocol. ERC223 solves issues with the ERC20 standard 1 while remaining backwards compatible with ERC20-compliant wallets. HACK is a tradeable digital token that can be used for participation, representation, proof of membership in H/F or any other suitable purpose.

KrowdMentor, a strategic investment and advisory firm empowering blockchain investors, funds, startups and entrepreneurs, developed the token. KrowdMentor also provided smart contract development, smart contract management systems as well as through other advisory roles in support of HACK.

Hack Fund

HACK will benefit from the same processes, community and experience that resulted in seven Hackers/Founders portfolio exits over the past five years.

With the use of blockchain technology, HACK will make it more possible for people at every level and in every part of the world to invest in startups. In addition, the liquidity of HACK means investors will be able to reap the rewards of a diversified startup portfolio without having to wait for years.

Fund Overview

Targeted number of investments: 30 for every $10M raised.

Typical initial investment by HACK: $100k-$250k Seed, $500k-$2M Series A.

Investing in startups seeking to have their own token sale as well as those growing towards traditional exits.

Types of companies we invest in:

The fund returns value in the following ways:

H/F Fund 1 through 4 Buybacks

Buybacks connect past H/F funds and HACK. HACK will purchase shares in the existing, well-performing H/F Funds 1 through 4 that are owned by the General Partner and previous investors. This buyback will comprise up to 10% raised by HACK. In this way, HACK can begin investment soon after the token sale, rather than having to wait until new startups are engaged.

Returns

HACK will utilize 100% of returns from exits to reinvest into new or existing portfolio companies. Reinvestment ensures the fund continues to create value over time. H/F has a track record of 30% growth in its funds for each of the last 5 years .

HACK will engage an independent service such as eShares to publicly report the aggregate valuation for portfolio startups. Public reporting will take place two times a year.

For example, if you have a portfolio of 200+ companies that, on average, are growing revenues and profits 30% year-over-year, the value of HACK tokens/HACK should in theory grow 30% year-over-year.

Investments

For every $10M raised in the token sale, HACK will invest into approximately 30 existing or new portfolio companies. Fund investments will be Seed and Series A.

H/F’s existing services-for-equity business model may also be used to obtain additional equity in individual companies. Taken together, equity ownership of startups will range from a minimum of 1% to a maximum of 30%.

Startups accepted into the portfolio go through a proprietary vetting process that utilizes the wisdom of the H/F network of experts, partners and peers to select the best companies.

Portfolio Company Token Sales

HACK investors will have access to presale pricing for token sales launched by portfolio companies. Companies must utilize H/F services to execute their launch. This service will be offered by H/F to portfolio startups that have product, are growing rapidly and need more than $2M in capital to continue scaling.

Token Sale Terms

Notice: HACK fund reserves the right to repurchase HACK tokens if it is in the best interest of our token holders.

Token Presale

Presale Phase 1 begins

Wednesday 15 November 2017 at 12:00AM PST

Visit hackvc.hf.cx for more information or buy.hf.cx to participate

Token exchange rate

$1 USD = 1 HACK

Currencies accepted: ETH, BTC

Minimum transaction amount: purchase of 1 HACK

(US Citizens have a higher minimum due to existing laws. Contact us for more details)

Presale Bonuses

Token Sale

Token Sale Launches Once Phase 2 Cap is Reached

Token exchange rate

1 USD = 1 HACK

Transactions

Currencies accepted: ETH, BTC

Minimum transaction amount:

purchase of 1 HACK

Minimum Investment

US: $50K

Rest of the world: $1

Hidden Cap

Disclosed when 80% reached

Token Sale Bonuses

Token Allocation

70% Token Sale

8% Operational & Advisors

78% Total Token Sale

18% Company Reserves

2% Portfolio Founders

2% Community Development

22% Company + Misc.

78% of all tokens will be allocated for sale, with 8% of that going towards operational overhead. Any additional operational costs will be borrowed out of the remaining 70% and will be paid back at a rate of 5% interest per year.

Company reserves will count for an additional 18% out of all tokens. The company will enforce a 4-year vest with 1-year cliff for any tokens issued to the team. 2% will be distributed to founders of H/F portfolio companies and 2% will be used for community development.