Family Office Insight’s Arthur Andrew Bavelas sat down with Alice Hlidkova from New Economies, a media startup focused on Blockchain news and original content, she co-founded with Lucas Cervigni, a serial entrepreneur, author, and investor.
“I like Blockchain technology, more so than crypto,” says Bavelas, who finds the underlying tech appealing for storing valuable information in an era where “information is invaluable.”
Family offices understand how blockchain technology can create new value in personal, financial and medical information. A blockchain system would be a huge improvement over the current way that our information is stored in multiple unrelated places, with people duplicating data entry — and making errors,” writes Cervigni in his book, Blockchain in Practice.
Cervigni reflects on how blockchain tech can create a “need-to-know” priority in order to prevent confidential information being seen by the wrong people. Blockchain technology brings value for family offices in that it allows “sophisticated or sensitive transactions that can only be conducted and verified by people with the right professional expertise,” writes Cervigni.
This is important for deal flow and verifying the information in making investments. Arthur oversees 10% of the deal flow among a community of 800 investors, and spends “95% of my time trying not to lose my money.”
In this case, investors can access a permissioned ledger/database whereby a body of people, his community of investors, can be entrusted to maintain the database, in this case, deal flow.
“However it is also only as strong as your trust in the approved people,” adds Cervigni.
Bavelas who personally invested in blockchain applications also invested in crypto, although he places less value on them due to its funding vehicle, Initial Coin Offering (ICO). However, he appreciates the value of tokens “engaging interest from the community.”
Like with any industry, the essential indicator of sound investments has to do with how well the business is run beyond the community factor. He warns, “tokens as a way of engagement does not necessarily correspond to the business.”
Bavelas adds another key indicator is the pitching process itself. “There are about 150 applicants a month and we only select about 20 per month.”
With $280 million to deploy, the investment ranges from several million to dozens more. “One company got $50 million.” Bavelas points out that the opportunity has to be good and so does the pitch to determine the level of success of a project. Although most applicants don’t qualify, he notes: “ Sadly we don’t always pick the best ideas, but we do our best.”
At the end of the day, entrepreneurs have to walk investors through the business plan. Perhaps, blockchain technology can assure the business objectives. And there is plenty of institutional support. “Large institutions have budgets to test blockchain apps,” says Bavelas who adds that large companies don’t always make good decisions. Startups can be a solution for quick, decision making for one of the fastest moving industries.
Many investors and founders question the evolution of blockchain and its format: public, accessible to miners and private, sophisticated databases with restrictive access. There is the discussion about smart contracts of “something else,” about to evolve to protect various interests groups. On regulating the industry, Bavelas concludes: “blockchain in itself doesn’t need a regulatory oversight, what requires regulation is the interest of these cryptos and tokens”
More on pitching principles and the way family offices work with institutions and to deploy capital listen to the video interview.
New Economies is excited to work with Family Office Insights in fostering blockchain technology. “When we can bring the blockchain community closer to serious investments, engage the strategic partners and broaden the entrepreneurial network, we have done our job,” states Cervigni, who commented on Bavelas’s seriousness in assembling a team of experts to analyze blockchain projects. “Companies that work with us are serious and that is why we take them to people like Arthur.”
Cervigni and Hlidkova partnered with Crypto Mountain and B Academy to develop the New Economies program for the World Economic Forum in Davos, January 22–24. The program will include in-person interviews with blockchain companies and investors, pitch sessions, cocktail hours and other business and social events.
As an entrepreneur, author, and family office investor, Arthur Bavelas is a pioneer in developing one of the first private opportunity peer review networks for investors within the family office community.
He founded Family Office Insights in 1998 to provide meaningful access and engagement for active, socially conscious entrepreneurs and wealth managers.
Mr. Bavelas draws upon his own experience founding, building and exiting a successful technology startup to evaluate opportunities spanning technology, market access, and impact investing.
He frequently speaks about wealth preservation and legacy investing. His written work has been published in The Wall Street Journal, Bloomberg, and Investment Advisor
Family Office Insights Website: https://familyofficeinsights.com/
Check out New Economies at https://www.neweconomies.com/about-us/
For project submissions and investment opportunities email [email protected]
For consulting and sponsorship deals email [email protected]