Hatchworks issues HTCH — it begins.
On Saturday, 10th August, 2019, Hatchworks officially commenced its long-term capitalisation process. With $4m of private capital already invested and a similar sum to invest in a range of assets across the world, Hatchworks is beefing up its dry powder and development funds for the build out of Hatchnet, its proprietary market insights platform and Hatchfunds, a series of regulated Unicorn and Yield funds that aims to democratize the opaque, VC investing process, in the future.
The firm’s initial raise was through the issuance of HTCH, an ERC-20 token. Around $200k was raised (95% internally funded) in USD with another c. $8.5m remaining in treasury for longer term liquidation (c. 19m HTCH tokens). The partner exchange that executed this was Chinese ZBG, part of the ZB group along with contributions from private contributors, off-exchange. Going forward the bulk of trading of HTCH will occur mainly on Spectre Exchange, a fully dual-license exchange to be launched shortly.
With around 180m tokens (total 200m HTCH minted) in off-exchange treasury currently, Hatchworks will retire/burn these thus limiting total supply to just 20m, with 2m for longer term liquidation purposes to fund the development of Hatchnet and obtain regulatory licenses for the series of Unicorn and Yield funds. The remaining 17m will be sold to any registered users of Hatchnet who wish to avail basic, advanced or premium access to Hatchnet and Hatchfunds in the future. These sales will be conducted off-exchange, directly on Hatchnet. Hatchworks will continue its long-term fund raise process for Unicorn and Yield funds through private equity and LP channels over 2019–2024.
Hatchnet is currently in alpha mode and basic access remains free for now here. By December 2020, the beta version will be launched with basic and advanced access offering the world’s first market insight and investment research platform allowing investors across the world to garner deep insights on startups and mature investments (across the Series A-D, pre and post IPO stage). Users of Hatchnet will be able to sort potential investment targets by a range of variables with unprecedented speed and depth, something platforms like Crunchbase or AngelList do not offer.
Hatchnet will offer the following levels of paid access:
- Access: Life-time access to Hatchnet (1–3 new companies added per week) where hundreds of companies exist, new are added every week and all are due-diligenced by our team of trained portfolio analysts.
- Drilldown: A detailed view giving quantitative and qualitative insights about possible targets.
- Premium Filters: The ability to sort hundreds of companies by sector, revenues, profits, valuation metrics and qualitative metrics such as has the management team invested, do they have priors with the law, is the company experiencing structural growth, does it have a disruptive product and many more.
- Basic Access: All features of Basic Access detailed above plus
- PDF Reports: Detailed PDF reports offering qualitative commentary by our investment committee
- Management Access: At certain companies added to Hatchnet. This allows you to speak directly to the c-level decision makers you may invest in some day.
- Submission: The ability to submit investment targets of interest that you wish for the Hatchworks team to due-dil and add to Hatchnet.
- Advanced Access: All features of Advanced Access detailed above plus
- Co-access: Become a co-investor alongside Hatchworks in a regulated syndicate with far lower barriers to entry than the usual “$100k ticket.”
- Preferential Rates: By being a premium access membership holder, you receive lifetime access to co-investment opportunities along with discount on valuations where negotiated by the Hatchworks team.
Users will have the ability to either purchase access directly from Hatchworks using Fiat currencies, Ethereum or BTC and opt-out of receiving tokens or (with Hatchworks burning the equivalent amount of HTCH tokens from treasury), if they wish to receive tokens and have an ERC-20 wallet, purchase tokens from Hatchworks (at $0.25/token) in order to receive access and at a later date, sell the tokens in the after market, so long as they hold the required quantity to avail access, in their connected ERC-20 wallets.
N.b If you are already an HTCH holder, then you simply need to hold the equivalent quantity of tokens required in order to receive the various levels of access, as determined by the fixed $ prices shown earlier, for each level of access. Please note that HTCH tokens may be cancelled and instead access to Hatchnet may occur only via paid subscription access.
70% of gains on investments made by Hatchworks will go towards ongoing capitalisation of the DALP, capitalisation of Unicorn and Yield funds and buyback and burn of HTCH and SXUT tokens. The group estimates that with the ‘hatchnomics’ of HTCH, under 10,000 privileged users around the world will ever be able to have paid access to Hatchnet.
- Team Hatchworks (firstname.lastname@example.org)
Disclaimer: All products and services of Hatchworks are closed to U.S. citizens. No information contained within Hatchworks documents and materials including, but not limited to, Hatchnet, is to be deemed as investment advice and is for educational purposes only. The future creation of Hatchfunds is subject to adequate regulation and is for professional investors only post regulation. HTCH tokens may be cancelled and instead access to Hatchnet may occur only via paid subscription access.