VNX FAQ's

  • General questions
    • What is VNX Exchange? menu arrow

      VNX Exchange is a bridge between traditional financial markets and digital blockchain-based technologies. VNX Exchange is aiming to build a regulatory compliant marketplace where venture funds would be able to list their tokenized startup portfolios, get access to the best deals available and to a far broader investor base. VNX Exchange tackles the problem of a lack of liquidity inherent to VCs head on.

    • What issues does VNX Exchange solve? menu arrow
      • VNX Exchange significantly reduces capital lock-in and mobilizes capital by improving its velocity.
      • It makes VC industry more inclusive, improving capital accessibility for smaller and first-time VC investors, as well as those operating outside of capital-rich geographies like Silicon Valley.
      • It opens VC as an asset class to a much broader global investor base represented by both institutions and individuals that previously did not have the opportunity to invest in emerging technology businesses.
      • It improves transparency and competitiveness, making venture capital industry more efficient. This, in turn, improves availability of capital for entrepreneurs.
    • What is the difference between VNX Exchange and other similar projects? menu arrow

      VNX Exchange is unique to VC industry. This marketplace tokenizes VC funds’ startup portfolios and offers them for trading on the secondary market. The platform’s main objective is to build an ecosystem that would unlock around $1 trillion in venture capital and bring efficiency and transparency to a fragmented market.

      VNX Exchange is based in Luxembourg, ranked as the second largest European financial center behind London and the first European country with a regulated digital money exchange. VNX is fulfilling all its obligations to achieve full regulatory compliance and have been working with one of the leading Luxembourg law firms Elvinger Hoss Prussen, Big Four companies and local financial regulators to receive all necessary licenses and approvals.

    • What are the key features of VNX Exchange? menu arrow
      • Listing simplicity and cost-efficiency
      • Fast transactions and real-time trading
      • Strong investor protection
      • Transparency
      • Top-level customer service
      • Support by VC ecosystem
    • What are the main pillars of VNX Exchange ecosystem? menu arrow
      • VC funds, startups accelerators and incubators
      • Investors
      • Financial services providers, such as brokers, dealers, advisors and financial managers
      • Professional services providers, such as law and accounting firms, management consultants, valuation providers, insurance companies, IT services providers, custodial services providers etc.
      • Media including traditional and digital media outlets, news agencies etc.
      • Professional associations including ABBL, ALFI, LPEA
      • Research institutes, such as University of Luxembourg
      • Regulators (CSSF and others)
    • What sort of cybersecurity solutions does VNX Exchange provide? menu arrow

      VNX Exchange together with the University of Luxembourg’s Interdisciplinary Centre for Security, Reliability and Trust (SnT) aim to create a new standard of security for digital asset ecosystem through a public-private partnership. The resulting technology may significantly reduce global costs for cybersecurity. SnT will design new IT frameworks for the project facilitating a secure exchange of digital assets on blockchain networks. This research it provides will also assess several distributed ledger architectures. The two partners plan to contribute to the introduction of regulation and cybersecurity to blockchain, allowing the creation of reasonable rules that will balance the interests of all involved players.

    • Is VNX Exchange centralized or decentralized? menu arrow

      VNX Platform is expected to be regulated and eventually centralized.

  • Industry questions
    • Why does VC industry need to change? menu arrow

      Venture capital is a particularly illiquid asset class. An average VC fund locks investors’ capital for 10 to 12 years, a significant amount of time. VC has a large number of risks related to startup investing, a high entry barrier and stringent exit terms. As a result, the industry is prone to scale effects, with a handful of large firms absorbing all investable capital. Lately, this has led to a steady increase in the average size of VC funds and to a decrease in early-stage startup funding, making capital less available to entrepreneurs.

      Tokenizing VC funds’ startup portfolios is the most efficient solution to these problems. It would bridge the gap between traditional financial markets and digital blockchain-based technologies. Unlocking an enormous amount of venture capital can bring efficiency and transparency to an otherwise fragmented market.

    • How has the relationship between investors and VCs changed with the introduction of digital assets? menu arrow

      Traditional investors are getting more interested in blockchain-based digital instruments because they allow them to raise capital much faster. A digital asset platform powered by blockchain technology is an ideal instrument for raising capital, getting interest from Main Street investors, and bringing insubstantial amounts of institutional money. Blockchain gives investors an opportunity to get good returns and to exit at any time.

    • What are the benefits of tokenization? menu arrow

      Let’s take a Picasso painting as an example. Tokenization offers token holders digital ownership of parts of a masterpiece, instead of the whole multi-million-dollar painting. Token holders benefit from buying or selling their digital shares to take advantage of token price fluctuations. As a digital financial instrument, such tokens can be quickly, easily and transparently traded online, with token holders following the price every day. No need for an auction house or another intermediary. Tokenization of traditional assets provides a number of advantages such as higher liquidity, 24/7 deals, lower transactional fees, automated and quick governance, absence of intermediaries, fractional ownership and others.

      VNX Exchange tokenizes VC funds’ startup portfolios allowing a broad pool of investors to get access to cutting edge technologies and put their money into what could be the next Uber or Airbnb.

    • What is digital custody and why is it important? menu arrow

      One of the essential fears for digital asset holders is losing their private keys because of hacker attacks, hardware and software issues or simply misplacing the password. To keep these fears at bay investors should store their digital assets with regulated custodians who place digital assets in deep cold storage, or offline on a system that has never been connected to any network. VNX Exchange is constantly working on ways to improve regulation and cybersecurity of its blockchain-based technology solution.