Recognized from its inception as an “ante litteram” DeFi project, Seed Venture and its design have been considered among the precursors of the protocols falling under the definition of Decentralized Finance (DeFi), as well as the very current tokenization of RWAs (Real-World Assets). Although it was not talked about yet, Seed was already doing it.
Not only in form but also in substance (as will be well summarized below): Seed Venture is one of the few projects that survived the ICO phenomenon, two bear markets, countless scams, and numerous failures of important projects or players. It has also distinguished itself in terms of marketing, which has never been “pumped” nor aligned with the common narrative to create FOMO and illusion.
Behind the scenes, always active and present, was a team of entrepreneurs and professionals with high-level skills and experiences, with a profound understanding of decentralized systems and a clear vision of the economic and social benefits they will bring in the future: the foundations through which the idea of Seed Venture was born to offer a solution to the main problem suffered by the crowd investing world in meeting the innovation of early-stage startups, namely the lack of a secondary market.
The Platform
V.1 (2019): The first fully decentralized version, complete with a blockchain engine and user interfaces, aimed to finance baskets of startups. Its representative tokens could be freely traded peer-to-peer on a custom-developed DEX by the Seed Venture team.
V.2 (2021-22): In response to market needs, the second version featured a decentralized engine and user-friendly interfaces designed for adaptability and future regulatory compliance. Unlike the first version, the secondary market utilized innovative Liquidity Pools operating on decentralized protocols.
With an audited initial release and a growing network of participants, the go-to-market strategy required achieving two main goals: attracting a professional investor and securing an appropriate license to build trust and credibility, addressing any concerns about being categorized within the “crypto” sector.
Acceleration Program (2023)
Recognizing the need for more than just a professional investor, the Founding Team sought validation of their model. They participated in the Dpixel international acceleration program, supported by Banca Sella, to engage suitable banking partners.
Out of 117 startups from 26 countries, Seed Venture was one of seven selected for the program after a rigorous due diligence process. Four startups, including Seed Venture, received investment proposals. Dpixel chose to invest in Seed Venture, becoming the company’s “institutional” Lead Investor and supporting its go-to-market journey (Link).
Investment model’s Proof of Concept
Dpixel’s investment enabled the validation of Seed Venture’s model through a private “proof of concept”, using the MVP (minimum viable product) solution developed by the Team. The first tokenized venture capital operation in Italy was announced, where Dpixel financed Lendit, a startup from their portfolio, receiving a representative token. This token was exchanged on a liquidity pool, enabling the secondary market on a decentralized protocol for the first time (Link).
This successful operation paved the way for a program to tokenize investments in startups in future acceleration programs following the model validated (video link).
License
2022 – Launch: Alongside the acceleration program, the Founding Team initiated legal activities to obtain a license, aligning with evolving European crypto asset regulations. Assisted by a top Italian law firm, they engaged with authorities to start the authorization process for a “tokenized” crowdfunding portal license.
The introduction of the EU Regulation led to the suspension of talks due to the need to harmonize applicable laws. After over a year of waiting, the team had to restart almost from scratch, facing economic challenges, uncertainties in the authorization process, and unknown licensing timelines.
SEED Token listing
On September 30, 2019, the Seed token was listed on the reputable Italian exchange The Rock Trading. The choice to list locally was part of a strategy to validate the model and obtain a license for the planned go-to-market. Informal analyses from TRT indicated that millions of Seed tokens had been traded over time.
In 2021, Seed was picked up by a top 10 international exchange for its potential, but listing costs were prohibitive as V2 platform development was underway.
Unfortunately, The Rock Trading entered judicial liquidation on April 14, 2023, ceasing token exchanges except through decentralized protocols. This created limitations and difficulties for Seed token holders and project participants.
December 2023: Reflections on the Future of Seed Venture
As 2023 concludes, the Founding Team undertook a thorough reflection on the project’s path, market scenarios, EU crypto regulations, and the competitive landscape, considering investor expectations.
The team recognized that obtaining a license is critical for Seed V.2’s success in Europe, requiring significant economic effort amid ongoing uncertainties. Despite validation from a professional lead investor, these challenges impacted capital-raising efforts.
The European regulatory landscape’s conservative stance, evidenced by an incomplete Pilot Regime (that discourages contenders, only 4 admission proposals in the EU at the time of writing), complicates innovation and business development, favoring more established entities. Additionally, European economic growth remains stable but limited, with insufficient support for innovation.
These considerations led the Founding Team to a strategic pivot, addressing evolving market trends and emerging needs.
2024 Market Investigation: Gulf Cooperation Council
In early 2024, the Founding Team explored alternative markets offering different prospects and competitive scenarios. Leveraging their extensive network, they focused on the emerging Gulf market (GCC Region), conducting a series of trips to the UAE and Saudi Arabia to assess the market, opportunities, and relationships. The analysis also included North African countries.
The investigation revealed:
- Market: The MENA Region offers unique investment, development, and competition scenarios, with countries opening to the West and presenting valuable opportunities.
- Drivers: A strong desire to attract entrepreneurs aiming to develop and scale innovative initiatives.
- Network: The potential to build trust-based relationships in a market dominated by family businesses, fostering innovation in emerging markets.
- Trend: High interest in AI and blockchain technology, with the UAE leading in crypto adoption over the past two years.
- Opportunities: Local initiatives aiming to innovate through new technologies can enter government investment programs involving local VC ecosystems.
- License: An open regulatory approach, with a well-defined framework, supported by various free zones offering licenses for market entry and initial validation.
A New Strategy
With support from investors and stakeholders, the Founding Team decided to develop a new project that grows locally but aims globally, which will be complementary to Seed Venture. This new initiative focuses on:
- Idea: Designing and developing a new concept intersecting AI and Web3, aiming for pre-seed capital to quickly validate the business in a high-potential market.
- Partner: Leveraging relationships to find a local partner with AI expertise and capital, involving local VCs to develop and validate an MVP (that will be crucial).
- Scenario: Following a successful initial market validation with the MVP, which will be the key, creating a clear roadmap for fundraising, technological development, go-to-market strategy for the MENA region, and international expansion, with plans to revive the Seed project as market conditions and EU regulations permit.
The Token $SEED:
In this exciting new chapter, Seed token holders will have the exclusive opportunity to exchange their tokens for tokens of the new project. This strategic move aims to enhance value and align with the new Founding Team’s vision. The specifics of timing, methods, and conversion ratios will be meticulously defined during the validation phase.
The roadmap also includes plans for future listing of the new token on centralized exchanges in the UAE or Saudi Arabia and pursuing decentralized exchange possibilities through major protocols. This approach is designed to unlock new value and expand the horizons for all Seed token holders, promising a vibrant and prosperous future for the community.
