BlockTalks x PolkaVentures AMA Transcript!

Hello! BlockTalkers & Blockchain Enthusiastic!

We recently hosted an AMA with PolkaVentures, on March 26th at 10.00 AM UTC. Many of you might have participated or many of not. But we make sure no one missed out from the knowledge shared by Patrick Dine, Managing Director at PolkaVentures so here we are up with the AMA transcript, for those who missed the live session, this blog post will be a saver & feeder of knowledge for them.

Introduction Questions Asked By Team BlockTalks

Q1. Could you please introduce Polka Ventures to our community in layman’s term?

Ans — Polka Ventures is a decentralized alternative investment fund. We invest in DeFi, crypto and blockchain projects that create value and solve issues making blockchain simply better. The investment targets have to a have a liquid token or planning to list it shortly.
We provide seed and early stage funding.

Q2. What are the major milestones Polka Ventures achieved so far & what are in the future pipeline?

Ans — We set-up and created the fund and we made our first investments already, such as:
Paypolitan/ EPAN
SmartCredit/ Smart
Radicle
Polkadot

Now we are launching our Lichtenstein fund in which we will inject the funds from the IDO.

Questions Asked on Twitter For PolkaVentures Team!

Q1. I understand that polkaventures only invests in projects that are close to listing their token on a dex, why only projects like these? What other criteria does polkaventures use to select the projects they will invest in? How do they know these investments will be successful?

Ans — We only invest in projects that list their tokens beause their tokens are liquid.
A liquid token is having a value and that allows us to run a portfolio of several investments and if needed we could make an exit at any time.
If you only invest into a start-up without a token you have to find a buyer and when you want to sell it you have to discuss the price.
This normally takes several months and it is not appropriate for the fast growing DeFi and crypto sector.

Q2. Does POLKA VENTURES provide financing only in the initial stages of projects? Do you provide financing for projects seeking solutions due to any financial bottleneck?

Ans — No, we are not acting like a traditional VC fund.
But our investments will create awareness for the target companies and increase trading volume.

Q3. In its second quarter (Q2), it says it will implement a Governance Token Configuration. But can you explain the function of this setting to me? Are there any bugs you need to fix or things to integrate? Will this setting not affect users who have your token?

Ans — Polka Ventures is the first venture capital fund introducing investments by governance tokens!

Polka Ventures is approaching the government token with on-chain governance. In the context of blockchains, participants have incentives to consolidate power and guide the network in directions that benefit them.

We decided to go for a stake-based governance: all token holders who have sufficient funds are enabled to vote. We believe that this is the most suitable solution for token holders. We will implement a Sybil platform solution for the governance voting process.

Please note that the management of Polka Ventures reserves to the right to make up to 20% of its investments directly without governance token votes. This is necessary because some investments are time sensitive and others need a high level of reactivity that can only be assured by fund management.

Who has the right to vote? With as stake-based governance: those with skin in the game. That means every POLVEN token holder staking.

Who has incentives to succeed? With our stake-based governance approach: all voters are invested.

Q4. Just recently, you announced that your Presale will be on March 28. So can you tell us more the details about it and how we can participate? Also some projects limits their participants, so how about you, is there limits too on how many can join?

Ans — Pre-Sale of POLVEN tokens will take place on Sunday, March 28th, 2021 at 15:00 UTC.
How to participate in the Pre-Sale?
The pre-sale will take place on the Bounce platform. In order to participate in the sale, you need to follow the link that will be posted on March 28th, 2021 at 15:00 UTC in our official Telegram (t.me/polkaventuresannoucements) and Twitter (https://twitter.com/PolkaVentures). Then, you connect your Metamask wallet to Bounce and make the fixed swap. More thorough instructions will be posted tomorrow. You don’t have to buy bounce token, you need only ETH in your wallet.

POLVEN Sale Structure

Q5. What are the criteria to choose the project where the funds are going to be invested? Is that a DAO community going to be responsible for it?

Ans — The projects have to be in the following sectors of investment:
1. DeFi
2. NFT
3. Crypto
4. Blockchain infrastructure

Secondly, the projects have to match some standards like:
- Is the team reliable?
- Is there a market for the product
=> You can check out our homepage and click on “Submit project”, there you can see all the information we will check before investing if our community is voting for the investment of course.

So, if you hold POLVEN token and stake it then you can vote where to invest.
And you are also entiteld to subject projects!

Questions Asked by our BlockTalks Community Members during live Session to PolkaVentures Team!!

Q1. Currently only the Lichtenstein fund is active, named after the pop art painter Roy Lichtenstein and in a way the father of “polka dot” painting is our initial investment fund. When do you intend to activate the other 2 funds? What is the POLVEN investment procedure based on?

Ans — The other 2 funds are launched in Q3 2021 and Q2 2022. But those funds will be regulated funds for institutional investors.

Q2. The other 2 funds are launched in Q3 2021 and Q2 2022. But those funds will be regulated funds for institutional investors.

Ans — Staking will be around 16%+.
The rate is calculated with the Compound rate.

Q3. What are the outstanding features of Polka Ventures that you think are the strengths that will help you succeed?

Ans — We are the first venture capital fund making its investment decisions by governance tokens.

Q4. What incentives do you offer to users who submit any promising Defi project to be evaluated by you and the community ? and what benefit do I get from voting for any of these projects to be selected?

Ans — If the project we invest in is creating a high ROI the staking rate will increase. So you will make a higher profit!

Q5. What’s Polkaventure opinion about DeFi? What do you think is holding the DeFi space back? What is preventing from the mass adoption of DeFi products?
staking , buyback , burn

Ans — We think the biggest challenge for DeFi is the cost of high gas fees. This issue has to be solved otherwise it will compromise many business models.

Q6. The Polka Ventures team makes no guarantees about the increase in demand, value or any other financial benefit of the Polka Ventures (POLVEN) token. As investors reading these details among others in the document “Legal opinion and disclaimer”, I fear that it is a risk to invest in your project. How can you assure me and prove that this project is safe and profitable?

Ans — Of course, we have to make a dsiclaimer because in any venture capital business is a risk involved.
Investing with venture capital means that those projects couldn’t get a traditional bank loan becaus of its immaturity.
Said that investing venture capital menas also that there is a high reward in case of a successful exit.

Q7. Can you list 1 or 2 deadly features that make #Polkaventure project stand out from its competitors? What competitive advantage does Polkaventure platform have that make you feel the most confident in yourself?

Ans —1. We are the first investment fund using governance tokens to make the investment decisions.
2. We will screen potential investments with our whole community and not only our fund advisor. We involved of eyes and brains that only fund managers could not do on their own. I believe that is the highest level of avoiding investing into bad projects or scams.

Q8. Now a lot of Many fake defi projects promising insanely high APR, but ended up pull liquidity or minting, how does your project respond to this case ? Explain the reasons why we should invest in your project because we know you’re a team without a name?

Ans — Polka Ventures will generate liquidity by exiting investments because those investments have liquid tokens. There is absolutely no reason to do that. We will generate a stable growth and that’s much more.

Q9. What is the Polka Ventures long-term vision for institutional investors? Do you plan to help institutional investors diversify their risks when investing in cryptocurrencies?

Ans — We set-up 2 funds, Warhol and Rauschenberg, because we have been approached by many traditional funds reagrding invsetment opportunities. So for them it’s like a smooth approach investing in our fund and Polka Ventures does the investments.

Here are some important links of PolkaVentures
🌎 Website:
https://polka.ventures/
📱Twitter: https://twitter.com/PolkaVentures
📢 Telegram: https://t.me/polkaventuresofficialchat

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BlockTalks is all about Blockchains & Crypto. We do discussions about new Blockchain projects, the innovations & such more.