How Chisos Uses Blockchain Verification in Our Investments

One compelling feature of blockchain technology is its ability to establish and confer trust. For those of us working in finance, this is a powerful feature with a lot of potential applications.

At Chisos, we’re using blockchain verification to record investment events, guarantee the authenticity of the investment, and even generate NFTs for investors.

Here, you’ll learn what blockchain verification is and why it matters in the context of early stage startup investing with Chisos.

What is blockchain verification?

In the simplest terms, blockchain verification is the process of recording an event on the blockchain ledger. This event recording is immutable, provable, and publicly auditable while maintaining privacy for users.

Blockchain verification is the process of recording an event on the blockchain ledger.

With blockchain verification, anyone can look up the record of a transaction to verify its validity.

Why does blockchain verification matter for investors and VCs?

Some venture capital firms and alternative capital providers, including Chisos, are beginning to use blockchain verification to store an incorruptible record that an investment took place.

In this way, blockchain verification is a symbol of trust and transparency.

This matters because it points to blockchain’s power to reshape and redefine functional aspects of startup investing, similar to how certificates and diplomas are being digitized and recorded on chain.

This is just the tip of the iceberg. (There’s a reason why VCs are pouring capital into web3.)

Why Chisos is using blockchain verification.

Chisos is using blockchain verification to record our Fund II CISA investments for the two reasons we mentioned above (trust and transparency), but also to de-risk the investment.

While it’s just a hypothesis at this point, we’re hopeful that this approach to investment certification can reduce the failure rate of the investment portfolio by social proofing the investment itself. This would boost the IRR for investors.

We’re also interested in compliant securitization because it has the potential to improve liquidity by opening up secondary markets for holdings. By digitizing aspects of the investment vehicle, investors will be able to access liquidity with their Fund II investments.

Our Fund II is currently open for LP investment. If you’re interested in taking part, you can learn more on our self-service portal here.

How Chisos uses blockchain verification for our investments.

Chisos is using blockchain verification to record our Fund II CISA investments for the two reasons we mentioned above (trust and transparency), but also to de-risk the investment.

We’re creating a digital certificate of an award when an entrepreneur receives their CISA investment. This award notes the issuer, recipient ID, and date of investment.

We're leveraging blockchain verification technology to increase trust in our process, enhance transparency in our investments, and establish modern investment vehicles native to the Web3 future.

Separately, we minted commemorative NFTs for investors that participated in our 2021 Reg CF capital raise. While those NFTs are simply a badge of honor today, the future use cases are endless.

In the future, should our portfolio companies achieve major success, this early commemorative artwork could theoretically be a valuable piece of history in its own right.

While interest in web3 and NFT is exploding, the use cases and utility are still in infancy.

Our goal at Chisos is to leverage the technology to increase trust in our processes, transparency in our investments and establish modern investment vehicles native to the web3 future. Today, that looks like investment award certifications on chain and commemorative  NFTs.

Today, that looks like investment award certifications on chain and commemorative  NFTs.

We think it’s better to explore and experiment than be caught flat-footed as the technology paradigm shifts.

Want to learn more? Our self-service investor portal on Securitize provides an even deeper dive.