By Daniyal Inamullah, CFA
After the recent collapse of the cryptocurrency bubble, the appetite for institutional capital in the blockchain industry is still low, but there is an intensified focus on corporate governance, legal structure, and project teams. Investors looking to structure deals in the space need to implement appropriate methodologies for valuation and corporate governance to attract capital and create sustainable investment platforms. EY’s recent study that 86% off ICOs are in the red has only increased the necessity to implement a systematic and conservative approach to investing in the space.
Don’t be caught off guard setting up proper controls for valuation policy & procedures. New valuation models such as the INET or NVT models require the assistance of experienced professions that are at the forefront of industry. Please reach out to Intrinsic today for more information!
Private Equity Checklist for Investing in the Blockchain Industry
|Stage / Diligence Item|
|Sourcing / Analysis Stage|
|VC/Hedge Fund Partnership||□|
|Tangible Market Application||□|
|Business Cycle / Competition||□|
|Escrow Payment Analysis (ICO)||□|
|Planned Evolution of Protocol||□|
|Service Providers – Attorney, Accountant, Administrator||□|
|Portfolio Optimization Strategy / Diversification||□|
|Forks / Protocol Voting Procedures||□|
|General Corporate Governance||□|
|Buy / Sell Decision Procedures||□|
|Investor Reporting Procedures||□|
|Valuation Policy & Procedures||□|
|Holding Period / Exit Strategy||□|
Want more info? Please see our Cryptocurrency Asset Valuation services page for more!