Hatchworks is in the process of expanding and raising $ 50,000,000 through a combination of institutional investors, private funding and an Initial Exchange Offering. The digital ERC-20 contract to be issued for the IEO is known as 'HATCHTOKEN' with a range of utilities. Find out below how you can join!
The firm plans to issue 200,000,000 HATCHTOKENS at a set price of $0.25/coin in return for a raise of $50,000,000 which is the hard cap. The soft cap, below which the raise would be considered unsuccessful is $1,500,000. The offering is at a 20% free-float, which means the management will retain 80% of tokens to which a 5-year vesting period is attached, resulting in HATCHTOKENS coming to market at a rate of up-to but no more than c. 1.33% per month. The reasons behind holding 80% privately is in order to partially fund the incubation of Hatchfunds in the future (26.7%), legal, advisory, management and research associate incentivisation (26.7%) and owing to currently weak market conditions (and subsequently, a possibly low IEO raise), to re-access the markets if they return to bullish territory (26.7%), in the future.
In order to manage volatility in access costs to Hatchworks, the firm will tie token quantities required to access Hatchnet and Hatchfunds to U.S dollars. Furthermore, in order to contain token price volatility (as high volatility in token prices is not commercial, in our view, as it signals a fluctuating value of privileges), the firm will use gains on investments to procure and burn HATCHTOKENS over time. This is after repayment of designated gains to the DALP and re-investment into Hatchfunds. This activity will result in a drop in HATCHTOKEN supply over time. Note: This is not a measure intended to support prices of tokens.
Hatchworks will be able to execute the entirety of its planned roadmap (seen above), in the event of a raise of between $30,000,000 and $50,000,000. In the event that the raise is between $15,000,000 and $30,000,000, the firm will deliver a full-scale version of the roadmap but not invest in the creation of Hatchcrowd (towards the end of 2020), its own vetted crowdfunding platform built on the principles of Hatchworks. If the raise falls anywhere between $5,000,000-15,000,000, it will deliver on roadmap items including Hatchfunds, albeit at a reduced scale and size. Should the raise fall in the range of $1,500,000 and $5,000,000, Hatchworks will deliver Hatchnet and continue to focus on its existing portfolio construction process, albeit with a stronger focus on seed-stage venture deals.
Risks: Since the price of HATCHTOKEN will be subject to future volatility after listing, contributing to our initial exchange offering classifies as a risky exercise if the expectation is to invest for future capital gain or profit. There are numerous risks that have been identified by the management team and these are explicitly outlined in the white paper found to the right.