BR11 Brings The Carnival To STO’s With Eleven Startups

The STO industry is gaining steam as more companies are viewing a token offering as a viable way of raising funds.

In our view, one of the most significant developments so far, has been Security Token Network’s discovery of the BR11 STO. The Security Token Network BR11 analysis can be found here.

BR11 presents a classic use case for how security token offerings can be constructed to provide value for companies, investors and consumers in a way that traditional venture capital cannot accommodate.

The token sale is being structured by Liquia Digital Assets, a subsidiary of Bossa Nova, Brazil’s most active pre-seed stage investor in startups.

As a collectivized STO, the BR11 token represents equity stake in an entire portfolio of companies across a variety of industries including
cryptocurrency, ecommerce, machine learning,, marketing, O2O retail, productivity, SAAS, telecom, and transportation.


This presents an interesting proposition for first-time STO investors who seek a diversified STO portfolio. We expect that accredited investors will prioritize de-risking their first STO investments because the industry is so nascent. If so, it is likely they will perceive a portfolio investment to be an efficient way of managing their risk.

Crucially, these are not pre-product ICOs raising millions of dollars to build a decentralized Facebook. BR11 states, that “90% of the BR11 investment portfolio have overcome the initial startup establishment cycle and are already in the growth phase and some already expanding internationally.”

Ideally, every startup in the BR11 portfolio will be an outperformer. The reality of the VC industry, however, dictates that only a select few companies among a fund’s portfolio will develop a significant market presence. Investors will be cognisant of this phenomenon, which may affect how long investors intend to hold the BR11 token after the initial token offering.

In addition, one potential drawback in a VC environment that emphasizes cross-border opportunities is the portfolio’s specific concentration on the Brazilian market.

This raises interesting questions regarding the investor profiles that will be receptive to BR11’s value propositions. How will investors weigh the BR11 diversification opportunities against the potential risk associated with geographic concentration? Will the promise of near-term liquidity help offset these concerns? Despite near-term liquidity, will investors still raise questions about exit opportunities for the individual startups of BR11?

We expect that
“early adopter” investors will forgo concerns related to VC return profiles and geographic concentration in favor of early exposure to an industry that is expected to burgeon in the coming decade.

This article has not received sponsorship from any 3rd party. The opinions in this article reflect the Security Token Network’s perspective on industry development.

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