Former Bitcoin.com CEO Stefan Rust has launched Sonic Capital, Asia’s first venture capital and impact investment fund to be tokenized on the blockchain. Sonic looks to invest in startups that leverage blockchain and tokens to provide commercial solutions to challenges related to the regeneration and conservation of the environment, as well as social equality. Sonic will particularly focus on investing in businesses that support the adoption and scale of the carbon credit markets. The fund has a global remit and will support companies at the Late Seed and Series A stages of investment.
According to the IIF (“Institute of International Finance”), the global carbon market is set to grow 160x in order to meet the commitments outlined in the Paris Agreement, further driven by an increasing focus of both countries and corporations to reduce their impacts to the environment. Voluntary carbon credits are recognized as a credible solution to alleviate environmental challenges because they go beyond regulatory obligations and contribute to the funding of carbon emission reduction projects from a variety of activities.
According to the pressr release, Sonic Capital believes the application of blockchain and tokens can alleviate some of the limitations and inefficiencies of the existing processes and infrastructure to help drive the necessary growth. Decentralized governance can provide much-needed transparency and automate manual and timely processes, and as a result, bring down the current costs associated with credit issuance to enable greater participation while increasing liquidity.
Stefan Rust, Founder and CEO of Sonic Capital, said, “Our planet is facing a huge governance and accountability crisis around our environmental and social challenges. Consumers are increasingly demanding action and transparency in the societal and ecological impact of their products. Investors and businesses have a crucial role to play in adopting innovative solutions. The decentralized governance and open source nature of the blockchain can accelerate our trajectory toward eliminating our environmental debt and creating a sustainable future.”
“With this in mind, I am excited to launch Sonic Capital, which provides an innovative approach to investing by combining blockchain technology and the burgeoning opportunities within the carbon market to drive impact. We look forward to supporting cutting-edge companies that are building the infrastructure, tools and solutions needed to create accountability, transparency and liquidity for the world’s natural resources – and to delivering both attractive returns and positive impact to our stakeholders,” he added.
Sonic provides a unique proposition to companies and investors by leveraging the expertise of Mr. Rust and his team, who have been at the forefront of mobile, blockchain and cryptocurrency innovation while at companies including Bitcoin.com, Lykke and others. In addition to providing critical growth capital to companies, the Sonic team will leverage their experience as entrepreneurs, business leaders and investors to provide hands-on support to portfolio companies.
Asia’s first tokenized venture capital fund, Sonic aims to democratize the traditional venture model by lowering the entry point for investment, creating early liquidity opportunities, and offering token holders a seat at the table through participation in the deal nomination and approval process. Tokenization of the fund enables anyone to invest directly from their mobile phone, empowering the Re:Generation to join Sonic in changing the world.
Alyssa Aaron, Partner at Sonic Capital, said, “Technology is a powerful equalizer. By leveraging vanguard blockchain and token technologies, we not only hope to address some of the most pressing environmental and social issues of our time, but also provide a new model for investors to gain access to the incredible financial opportunities related to responsible investment, driven by shifting consumer and corporate preferences. Given the positive momentum surrounding environmental, social and governance initiatives, now is the ideal time to launch a tokenized impact fund like Sonic in Asia.”
Sidley Austin is advising Sonic Capital on the establishment of the fund.
“We’re excited by the opportunity to work with Sonic Capital and leverage our experience in two areas that we feel passionate about – impact investment and the digital age,” said Joy Lam, Partner at Sidley Austin. “Blockchain isn’t about a new way to bring people together to do business, it’s about a better way to do business and effect positive social change. We’re very proud to partner with Sonic Capital in developing this innovative product which will enhance sustainability and equality.”