Renato Zamagna

Subtitle: Risk and cryptocurrencies are pretty much synonymous. However, it doesn't have to always be that way, investing in asset backed security tokens will lower your risk exposure significantly by diversifying it . Intro: Have you invested in utility tokens that have no product, or proven business model only a concept and a roadmap?Then you know the "thrill" of seeing your portfolio value rise like an air balloon just to free fall as fast as a roller coaster . Blockchain technology has allowed the tokenisation of almost everything. Asset backed security tokens introduce the concept of "peace of mind" to the crypto investor. It takes the "gambling" aspect out of the equation by tokenising real world assets, with proven value. Based on more abstract concepts These tokens simply provide users with a product and/or service. Speculative in nature Value largely derived from cryptocurrency market sentiment Utility token definition Only 2% become profitable business, very few exist after 2 years. (would help to include sources and examples) Without any platform protocols with mainstream adoption, it's difficult to gauge the success of a utility token. There is little to no historical data for a comprehensive valuation model. Security tokens derive their value from preexisting, tangible, tradable assets. Because the tokens are deemed a security, they are subject to regulations. Regulations are not always bad- they're a form of accreditation. Based on tangible assets Value based on asset performance (quarterly NAV Reports) not on crypto markets Any tangible asset can be tokenized (businesses, real-estate, art, etc) Utility vs Security tokens Since the assets which are represented by the security tokens already exist in the “real world”, they act like a bridge between legacy finance and the blockchain world. It opens up traditional investment tot he masses. (it democratizes (not in an absolute sense), the issuance of investment products for a larger number of people. Bringing credibility back to token sales (how so?) Improving Traditional Finance.. (in what ways?) Speeding up Execution (how is "Execution" defined in the traditional sense?) There are some positive best practices and principles within traditional finance that can be incorporated into a tokenized startup fund. Title: Utility vs Security tokens. How investing in security tokens backed by real assets will diversify risk exposure. Exposure to Free Market (because it supercedes the jurisdiction of other nations; in this case less regulation = freer market?) Larger pool of investors Reducing Lawyer Service (because of Ross & Shulga partnership?) So what are the exact changes that security tokens are bringing along with them? Security token definition Lack of Institution Manipulation Easier Liquidation The importance of investment diversification "Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event". Investopedia Value Is Derived from a Tangible Asset Increased financial transparency. Startups within the BR11 portfolio will distribute a quarterly NAV (Net Asset Value) Report to update tokenholders of their operational progress. There is no lock-up period, with traditional VC firms, lock-ups can occur from 7-13 years, or if a company in a portfolio exits. With a tokenized startup fund, investors may buy or sell more tokens at any point in the life cycle of a company in the BR11 portfolio. How will the BR11 token will diversify risk exposure? The BR11 token is a never before seen initiative. It consists of a investment portfolio of high performance startups. They are all in the growth phase, with significant revenue and market share, some of the are already expending internationally. They have been hand picked out of 400 startups that have been invested and/or incubate by Bossa Nova or Ace Investments, which combined are the largest startup accelerators in Latin America. Not only the BR11 token will diversify the investment among 11 startups which would already reduce risk exposure, but the fact that all startups have proven business models, some of them with millions of dollars in revenue lowers the risk exposure even more. BR11 is democratising venture capital and bringing peace of mind to the cryptocurrency investment arena, something revolutionary at this point in time when the entire crypto ecosystem in on the verge of a nervous breakdown. Back to the crypto amusement park, it is time to get off of the endless crazy roller coaster ride and chill out on he carousel, or take a pony ride, or whatever ride you want as long as it's relaxed and most importantly less risky. conclusion Another suggestion: In the many ups and downs of the crypto amusement park, one must take a break from the extremely volatile rollercoasters every now and then. Why not diversify one's experience? In the crypto world, an asset-backed tokenized startup fund may provide much-needed diversification. Welcome to the future of blockchain and venture capital investments. BR11, innovating the innovation ! Call for action Join us!