SmartContract Investment and its promise to change blockchain investment forever.
Hectagon will invest using Investment Treasury (HECTA) and stable token (e.g: BUSD) from the Treasury. Investment is a long and tedious job. The DAO will choose professionals to run this job of which consists 5 major processes:
- Deal sourcing
- Deal screening, Due diligent and Invest
- Value add activity: fund raising, hiring, networking, mentorship, marketing, product development, etc.
There are 2 sources for Hectagon deals:
- Running campaigns to rewards anyone with value information. This activity aims at community members, project owners or their acquaintances. The information required for this process is simple and need a lot of validating effort from investment team before presenting to all gHECTA owner
Simple deal information
- Hectagon will work with other Venture Capitals (VC) so they will provide deals and we can co-invest. In the Venture Capital industry, sharing deals is not uncommon since it help (1) reduce the risk (2) add another helping hands. As the time of writing this document (6/2022), we have been talking to dozens of VC and they are all happy to work with Hectagon.
Deal screening requires very comprehensive information of the project before the team can require an investment memo which will be publish to all the gHECTA holders.
The investment memo will contains facts (as writing in pitch deck, white paper, docs, etc.) and specialist comments on following topics (the one in red color means that part is required)
- Problem statement
- Biz Model
- Vision and Strategy
Due Diligence would requires Hectagon to work with partners to (1) site-check and off-line meeting if the team is doxxed (2) contract audit (3) random user interview if the product already has traction.
Invest is the part when Investment Committee team decide whether to invest in the project or not. Hectagon will let all gHECTA holders have a say on this matter. However, the final decision is up the professionals.
Hectagon will invite projects to hold campaigns within our HECTA holder community. The rewards can come from the project themselves or Hectagon can be the sponsor. There are many things a startup would need to success, for example: fund raising, hiring, networking, mentorship, marketing, product development, etc.
Hectagon genuinely believe this part will be the best part ever of web3 space when innovation is no longer being done under the dark but being raised with a village.
Hectagon will provide quarterly reports on all portfolio projects on key metrics depending on sectors they are working on. This activity will renew the public attentions on the projects and bring them new valuable users. Hectagon will invite partners and/or incentivizes community members to conduct report.
Investment is an industry of which there are segments. Even Crypto is new and it changes many concepts in investing, we believe that there is no single investment model that fits every stage of a project. Hectagon is open to exit on investments following conditions:
- Exiting is the best way to capture value to gHECTA holders.
- There are other investors can contribute better value to projects thus selling parts of what Hectagon's holding to them will benefit the bigger ecosystem.
Up to 85% of the deal, Hectagon will invest through a smart contract name SmartContract Investment (SCI) with following procedure:
- Project propose an investment term, including these 2 most important information:
- How long do they want Hectagon to lock their token (no vesting, just lock)
- How much do they want in return and what token they want for investment.
- If Investment Committee agrees the investment then the DAO will interact with the smart contract to approve the term thus sending investment to the Project.
- SCI is designed so Hectagon can only withdrawal project token when the term is satisfied.
Hectagon will be the diamond hand holder of projects thus giving them time to fully develop to their potential.