Why you should buy and HODL Science ICO
This ICO is a bit different than other ones I’ve been looking at lately.
It’s probably not a quick flip ICO, but I think still a great short-medium term investment. More on that later.
What is science?
Science is an incubator / startup studio based on Los Angeles, which has been operating for 10 years, and has many success stories.
They are one of the few incubators out there that are actually successful.
If you didn’t know, the incubator business model follows a power law for returns, something like 95% are not successful.
The strategy for making startups is different. They do whatever it takes to make a business.
Sometimes they bring in a full startup and invest in them.
Sometimes they find an awesome founder, give her an opportunity and build a team around her.
Sometimes they build their venture completely internally and spin it out.
Whatever it takes.
Their method of defining success is different too.
YCombinator urges companies to shoot for the moon, build the next Facebook or go bust.
Science is happy with building towards acquisition, which means they have a less risky path to getting a return on their investments.
Their strategy gets results, they have had 6 of their companies acquired in the last 2 years!
The biggest one, Dollar Shave Club, for $1B.
The team behind Science is top notch. Before Science, and the great track record they have with Science, the founders were executives at companies like MySpace, AOL, and PhotoBucket.
They are very well connected in the technology and media industries, and put the full force of their connections behind all their incubatees and investments.
So you can see, being an investor in Science, the incubator, would be quite lucrative!
If you can get access of course.
But like with any prestigious incubator or VC fund, access to that investment is only available to the very rich and well connected.
The rich get richer, while the middle class are shut out from great returns.
Science is now focusing their venture building on the blockchain space, and they are fully embracing it.
Instead of being a regular investment fund, they are raising a token fund, which means almost anyone can become an investor in Science, even with small amounts of money!
*Everyone except Americans, as we still have those overly restrictive securities laws 🙁
As a SCI token holder, you are entitled to the returns earned by the incubator, which is pretty dope!
Many who are investing in ICOs full time are looking for quick flips. This is not one of those.
Typical startup investments take 5–10 years to realize returns. There is no liquidity in those startups, and therefore investors must wait for the exit.
Like other tokens which represent a stable asset or investment, I don’t think the value of SCI will have a big pop 1 month after the ICO.
In fact, I suspect the value of SCI will drop when it gets listed on an exchange as the quick flippers realize there are no gains to be made.
BUT — The team at Science are doing one awesome thing, that I think makes this a great short-medium term investment!
Not only do they take equity in startups they invest in, they will get around 25% of tokens for any ICO projects they invest in, and distribute these to SCI token holders immediately!
So this means your investment will likely give you returns in the form of brand new tokens, within the next 6–12 months.
THEN, in 4–7 years, your tokens will begin to see the benefits of equity exists, as the cash returns come back into the SCI token!
This is what really makes this compelling, its like an ICO fund, VC fund, and ICO all in one!
So, while I wouldnt pick this one up for a short flip, those of you looking to add to your long HODL portfolio, take a look at the Science ICO ending Nov. 2!
Token Sale Details
Hard cap: $100m (quite reasonable raise for an investment fund)
Price: USD $1.00 per SCI Token
Public sale: Oct 12, 2017 – Nov 9, 2017
Blacklist: No Americans (except for 99 accredited investors)
Fees: 30% carry (a bit high, but it includes re-investment capital and no mgmt fee)
- 70% of acquired token distributed to SCI hodlers
- 70% of cash used to buy back SCI tokens. 70% of bought back tokens are burned.