cFund is an early-stage, sector agnostic venture fund focused on the blockchain industry anchored by IOHK and managed by Wave Digital Assets. The Fund is operated by a dedicated team of investors and entrepreneurs zealous about blockchain technology and digital assets looking to back ambitious founders globally that are looking to build and grow projects on the Cardano blockchain.
Why is IOHK anchoring a venture fund?
IOHK is the technology and research company that developed the Cardano blockchain and ADA cryptocurrency. In today’s rapidly expanding blockchain sector, Cardano is seen as a world leader in sustainable, proof-of-stake blockchain technology behind smart contracts, DeFi and identity solutions.
To accelerate the adoption of the Cardano blockchain technology, IOHK partnered with a recognized asset manager to bring more world-changing ideas and solutions to market faster.
Why the Cardano blockchain?
Cardano is a blockchain platform for changemakers, innovators and visionaries. It is the first blockchain platform to be founded on peer-reviewed research and developed through evidence-based methods.
Cardano is open-source with more advanced features than any protocol yet developed. And it incorporates IOHK’s groundbreaking Proof-of-Stake (POS) algorithm Ouroboros, which significantly increases the resilience necessary for mission-critical systems and in theory reduces energy consumption by over millionfold compared to Bitcoin.
Our Portfolio Investments
As of 11/9/2023
*The below is a partial list of the portfolio holdings. A complete list may be obtained by contacting info@wavegp.com.*
**You are now leaving the Wave Digital Assets LLC website to access an unaffiliated third-party site. Please be advised that Wave cannot verify the accuracy of the information on the third-party site, and does not endorse the content, comments or data that may be found on this site.**
Risk Factors
Relationship with Cardano and IOHK.
Wave Digital Assets LLC (“Wave”) has many relationships with the Cardano blockchain and IOHK (also known as IOG), including that IOHK and IOHK-affiliated persons are investors in Wave’s parent company (Wave Digital Assets Holdings LLC) and/or in many of Wave’s other funds and accounts. The Fund’s focus is on investing in companies and projects building on the Cardano network. As a result, these relationships may cause conflicts of interest in Wave’s management of the Fund, including by engaging in riskier investment strategies or taking into account non-financial considerations in its investments as compared to other venture funds not affiliated with a particular blockchain protocol. In addition, IOHK is currently the controlling interest-holder in the Fund, and its interests in providing or withholding consent to certain investor voting matters may diverge from other unaffiliated investors.
Lack of History
Crypto Assets are a relatively recent technological innovation. Bitcoin is widely considered to be the first popular Crypto Asset and was invented in 2009. Other Crypto Assets in which the Funds may invest were created after Bitcoin and, in certain cases, may not be in existence as of the date of this Memorandum. This limited operating and trading history limits the Investment Manager’s ability to evaluate the investment opportunity of a Crypto Asset and limits the ability of Investors to evaluate an investment in the Funds.
Regulatory Uncertainty
Regulation of Crypto Assets continues to evolve in the United States and foreign jurisdictions. Regulatory actions could negatively impact Crypto Assets in various ways, including, for purposes of illustration only, through a determination that one or more Crypto Assets are regulated financial instruments that require registration or licensing. The Funds may cease operations in a jurisdiction in the event that regulatory actions, or changes to law or regulation, make it illegal to operate in such jurisdiction, or commercially undesirable to obtain the necessary regulatory approval(s) to operate in such jurisdiction.
Risks Associated with the Token Protocol
Crypto Assets are generally based on protocols, such as the Bitcoin Protocol or the Ethereum Protocol. Any malfunction, breakdown or abandonment of the Crypto Asset’s protocol may have a material adverse effect on the value of the Crypto Assets. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the Crypto Assets by rendering ineffective the cryptographic consensus mechanism that underpins a Crypto Asset’s protocol.
Market Risk
Since the financial crisis, the global economy and equity markets have largely improved. Bitcoin was the first Crypto Asset and was invented in 2009. With a short existence and trading history, it is unclear how the value of Crypto Assets generally, and any particular Crypto Asset, will react to factors relating to market activity or the economy in general. The market for Crypto Assets is global in nature. Therefore, both domestic and international concerns can affect Crypto Asset prices. Exogenous events may have adverse effects on the strategies.
Emerging Company and Venture Capital Investing Risk
Venture investments in early stage and even in later stage companies carry material risk of loss, and commonly result in complete loss of investment if an issuer fails in its proposed endeavors. Such issuers are not highly capitalized, are not always operated by experienced business persons, and may make commercial mistakes that seasoned entrepreneurs could avoid. Such issuers also operate in novel sectors, which increases both potential reward and potential risk. Even in a novel sector, new competition could replace even strong ideas and execution, which could adversely affect the Funds’ holdings. Blockchain in particular is new, companies in the space tend not to be seasoned, and even potentially revolutionary technology could find itself outperformed by less (or more) advanced technologies that have better marketing or other aspects that result in poor results for the Funds’ holdings.
How to Invest in the Wave СFund
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get started*The material provided herein does not constitute an offer to sell or a solicitation of an offer to buy any interest in the Fund or any other securities. Any offering of a Fund will be made only in accordance with the terms and conditions set forth in the Fund’s private placement memorandum or similar document (Offering Materials) Please see IMPORTANT DISCLOSURES provided at the end of this presentation.
**WAVE DIGITAL ASSETS LLC IS REGISTERED WITH THE US SECURITIES & EXCHANGE COMMISSION AS AN INVESTMENT ADVISER, CRD 305726. PLEASE SEE THIS SITE FOR MORE INFORMATION, OUR DISCLOSURE BROCHURE AND OUR RELATIONSHIP SUMMARY HTTPS://ADVISERINFO.SEC.GOV/FIRM/SUMMARY/305726.
***FUND INTERESTS ARE SUITABLE ONLY FOR SOPHISTICATED INVESTORS FOR WHICH AN INVESTMENT IN THE FUND DOES NOT CONSTITUTE A COMPLETE INVESTMENT PROGRAM AND THAT FULLY UNDERSTAND AND ARE WILLING TO ASSUME THE RISKS INVOLVED IN THE FUND’S SPECIALIZED INVESTMENT PROGRAM. Certain criteria, including minimum financial status and experience may apply.
Services
Our team has deep institutional experience managing third-party capital across traditional and decentralized finance, in particular venture capital, derivative, lending, and staking expertise.
In addition, we have built strong relationships with institutional service providers leveraging our blockchain and digital assets network across the world.
Treasury Management
Wave’s Corporate Treasury Management services include digital asset lending programs and derivative strategies designed to capture additional yield and fine-tune risk, with a range of qualified custodians and counter-parties. Wave also operates across multiple DeFi protocols for lending, borrowing, trading, yield farming, staking, and mining. Wave applies our deep experience in digital asset strategies to bespoke risk managed portfolios. Wave Digital Assets is SEC regulated focused exclusively on digital assets, and have a fiduciary duty to protect our clients.
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Wealth Management
Your ultimate solution for digital asset portfolio management, combining custody, execution, and tailored investment strategies.
Wave Digital Assets is a leader and pioneer in digital asset investment management. We are focused exclusively on digital assets, our offering is designed to provide the ultimate all-in-one portfolio solution for corporate and individual investors, and we have taken steps to ensure that assets are secure, growing, and generating income.
Protocol Inventory Management
Tokenized staking fund for your protocol. Programmable liquidity through fully-compliant global exchanges. We deal with all the administrative hurdles providing you the ease of use
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Wave’s investment team draws on decades of asset management expertise to offer actively-managed strategies.
