CHΛTEΛU tokenizes Private Equity deals with ERC-1155 and corresponding ERC-20 or ERC-3643 tokens to enable on chain trading.
Legally, CHΛTEΛU uses a special investment fund in the British Virgin Islands to either execute forward swap agreements or other similar vehicles to purchase companies’ shares, and then issue corresponding GELT to enable on-chain trading. That way we bring Private Equity to DeFi, enabling global 24/7 access with lower entry cost, and made it possible for all DeFi investors to access in the most popular private secondary, or Pre-IPO deals like Klarna, SpaceX, or Scale AI.
A General Equity Linked Token (GELT) is a concept for minting a series of tokens for each type of Equity Product which may be offered as part of a companies’ capitalization.
Many types of equity agreements, inclusive of option rights to purchase equity, as well as warrants, and even types of fractional Fund Ownership, exist along side one another on semi-fungible terms. CHΛTEΛU implements GELTs as part of an ERC-1155 semi fungible token minted for each company.
For specifics, please read our documentation.
What is your minimum investment size?
There us no minimum investment size. Available tokens can be purchased with USDC with the appropriate gas fees.
Do I own the stock in these companies?
No. You own tokens that represent ownership in forward swap agreements executed by CHΛTEΛU.
How do you price the shares?
The industry uses the last round of financing and expected IPO range as a pricing guidepost. Other factors may include investor demand, access to the company, other secondary transactions that have occurred and publicly available information.
Freely trading GELT is priced according to the market
Can you provide the company’s financials, exit strategy, and prospectus?
Unfortunately, our network does not have access to the company’s most recent financials, or their investor presentation. Our networks leverage the due diligence performed by the company’s most recent investors and base our offerings on the price those investors paid.
How long can I hold these tokens?
As long as indicated on a contract. Upon expiry following an IPO lockup period, the tokens you hold are cash settled against market prices in stablecoins.
When can I expect the company I’m in investing in to go public or get acquired?
We cannot guarantee an exit nor a timeline for any of your holdings. However, the majority of investment opportunities are companies who have received institutional financing and have a typical investment horizon of 2-5 years.
What is a late venture?
Late venture investments are usually categorized by a funding round. Venture capital firms consider Round C and further as a late-stage investment.Additionally, late venture is when you invest in a company with a valuation of over $1 billion or in other words in a Unicorn.We have made it easier for you to understand using our stage tags.
What are the benefits?
Investments in large private tech companies performed several times better over last years than the broad market index – S&P 500.
Moreover, venture investments have almost no volatility as companies' valuation change only on the funding rounds. Late venture investments are also considered less risky compared to Seed and Early stage. Late stage companies usually have working technology, proven business models and are backed by the leading venture capital firms.Such companies tend to disclose information regarding their metrics, development, and financial performance.
For investors, it is important to make an informative decision prior to investing in a particular company.On CHΛTEΛU anyone can create a portfolio of late venture companies with all available public information for each investment opportunity right in the app.
How to minimize risks?
Despite the companies listed on our Marketplace being carefully selected by our expert team of analytics and with a track record of revenue and success, nobody can predict the future. Investors should be aware that late venture is considered as a high-risk strategy and be prepared not only for possible profit but for loss as well.In order to minimize risk, you should diversify not only a venture capital portfolio, but also use other investment classes like stocks, bonds, real estate, crypto, and others. On our side, we guarantee full transparency and legality of all operations.
Do you own research
Prior to investing in a company, look into the market, competitors, technology, patents, metrics, founders, and management. You can check the relevant public data related to every investment opportunity on the CHΛTEΛU Marketplace, but make sure to do your own research as well.
CHΛTEΛU does not provide any investment advice or make any investment recommendations concerning any digital and other types of securities. The information provided on this website or any other medium is solely informative. Neither CHΛTEΛU nor any of its officers, directors, agents, or employees make any recommendation or endorsement whatsoever regarding any digital securities powered by Raison’s technology.
What is the exit strategy?
After the investment you have two exit strategies:
1. Wait for the company's Public Listing. When a company goes public and after the lock-up period ends, according to offering details, the fund sell shares on the public market and distribute returns among all GELT holders. You will receive a stable coin payment equal to the number of GELT multiplied by the new share price.
2. Sell your GELT on CHΛTEΛU to other traders.
The golden rule of investing is to have a well-diversified portfolio in order to minimize risks. Fractional shares help you easily create a diverse portfolio using an amount of capital that you are comfortable with.The best practice is to diversify investments based on stage, industry, and geographical location.
What is a public listing?
Public listing is a process when a private company decides to list its shares on a stock exchange like NYSE, NASDAQ, and others. The most popular way to do so is Initial Public Offering (IPO), however, some companies choose alternative options such as SPAC or Direct listing.
For venture investors, a public listing is one way to exit the investment. In the case of an IPO, companies put a lock-up period, after which investors can sell their stake and receive a return.When a company listed on CHΛTEΛU goes public, GELT holders will have to wait for the end of the lock-up period to receive a profit.
What is a lock-up period?
An initial public offering (IPO) lock-up period is a contract provision preventing insiders who already have shares from selling them for a certain amount of time after the IPO. Although the waiting period varies on a case-by-case basis, it typically ranges from 90 to 180 days.Lock-up periods generally apply to insiders, such as a company's founders, owners, managers, and employees. However, it also applies to venture capitalists and other early private investors.
CHΛTEΛU takes a flat 5% commission per instrument issuance, and 10 basis points (0.1%) per token trade.
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