Exponential's Digital Asset Fund Closes Strong Second Round Marking a Win for Retail Investors and Financial Inclusion
TORONTO, June 3, 2020 /PRNewswire/ -- Exponential's Digital Asset Fund ("DAF") (NEO:DIGTL) closed its second round of rolling funding Sunday with $10,693,130 CAD invested to date of its ultimate $100MM goal with participation from Exponential and retail investors. The fund champions financial inclusion by giving non-accredited Canadian investors access to scarce digital assets and Exponential's highly-vetted venture capital portfolio, an asset class traditionally only available to accredited investors. The TFSA and RRSP compliant fund also gives Canadian investors an innovative opportunity to invest a portion of their tax-free and retirement savings accounts.
"Compared to accredited investors your average retail investor has far fewer options available to them. We felt this was wrong on a number of levels, including that this essentially stacks the deck against people who could use sound investments most. That's why one of our main intentions when building the Digital Asset Fund was to level the playing field by giving non-accredited investors access to types of investments and asset classes previously withheld from them. We see this as a meaningful contribution toward a more inclusive financial system, and will continue to do our part to promote that future," stated Exponential co-chair and CEO, James Wallace.
The actively managed fund was created by Exponential's team of venture capital, digital asset, and investment management experts and is carefully overseen by former Guggenheim Partners Managing Director, Steven McClurg. Diversified amongst a range of familiar asset classes, including real estate, stocks, bonds, and precious metals, the DAF is enhanced by its addition of asset-backed digital securities. The underlying digitized assets boast a number of benefits over their paper counterparts, including the ability for earlier liquidity, fractionalization, nearly instant transaction settlement, and significant cost savings, making them attractive to investors.
"We wanted to create something that felt familiar and accessible and then layer on what traditional capital markets would call an alternative investment. The fund is actually a sound investment on its own merits, enhanced by its digital components," stated Chief Investment Officer, Steven McClurg.
How The Digital Asset Class May Shape The Future Of Financial Inclusion
One of the key goals of the fund is to expand financial inclusion by helping migrate capital from traditional capital markets to the new, open, and inclusive digital economy–– bridging the gap between everyday investors and investments that make a positive difference in the world.
Through its venture arm, Exponential is committed to investing in companies that alleviate suffering and expand human potential. Making their venture portfolio available to retail investors through the Digital Asset Fund gives everyday Canadians an opportunity to invest in initiatives and ventures they want to see thrive in the world.
"When an accredited investor chooses to invest in a startup, what they're really doing is choosing to support a company they want to see succeed in the world. One of the biggest inequalities we recognized with traditional private equity and venture capital was that retail investors didn't have the same opportunity to impact the future they will live in by selecting and funding companies that matter to them. Now, through the Digital Asset Fund, we've given all Canadians an opportunity to vote with their dollars to support economically sound and socially conscious businesses they want to see thrive. We see this as a big step forward toward a more inclusive system that allows anyone and everyone to have a say in the products and service providers that grow in the world around them," remarked Wallace.
Demonstrating their belief in this vision with action, Exponential initially seed-funded the DAF with $10MM of their own funds, ensuring the alignment of interests among all investors. External investors, including retail Canadians, have contributed over $76K to the DAF since it's April 8th launch and that number is expected to rise as awareness and adoption of digital assets continue.
"The decision to seed-invest the fund was easy. We believe in what we've created and are not just looking to play with other people's money. We've got skin in the game, the same as those who invest with us, so we're clearly committed to its success," said James Wallace.
The Digital Asset Fund can be accessed by Canadian retail investors on FrontFundr, by Candian RIA's on DealSquare, and by global accredited investors at exponential.io/daf
For media inquiries: Sunny Durante, 512-666-8108, [email protected]
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