Since its inception the Stock Market was always a little out of touch to the general population. Sure you had a grandparent who owned some random stock certificate they gifted to you when you were a baby but generally speaking it was very far removed from everyday life. Upper-middle class had a “finance guy” who would handle everything for them, while they mostly ignored it and just saw it as a diversification method. Yet the the financial elite, who were directly involved, reaped all the benefits as they traded aggressively on the market floor. However, with the advent of the internet the general public began to have many of the financial tools available to the experts. E-trade, and many other such companies, brought the financial market into every home, all accessible with a click of a button; instantly. For once it seemed like everyone would have the same opportunities at their fingertips. It sounds good on paper but sadly this is not quite what happened.
Along with these tech companies that brought access to the market came a new type of industry and investment play, the modern day technology IPO. Dotcom era tech IPO’s were being valued at tremendously inflated prices, many multiples above their earnings (and most didn’t even profit at all). Many of us were around for the dotcom bubble and saw these overvalued companies take a nosedive, leaving tons of unsuspecting losses in their wake. The financial elite, however, had already realized their gains and made their exits far before sinking with the ship. While the general public finally had the access they longed for they unknowingly now carried the bulk of the risk for the elite who had invested pre-IPO.
Lyft IPO Numbers
This trend continues today. We see tons of brand new tech IPOs which are being valued at tens of thousands of times (sometimes much more!) that of their private investment rounds. Sure, there may still be opportunity for growth when those companies go public but by that time the absolute best deals have already been missed. Silicon Valley venture capitalists have all but built walls around these “unicorn” investments, ensuring the wild growth potential is kept firmly in their hands with no chance of the public getting in. For most the buy ins are too high, the networking circles are too tight, and the deal flow is non existent. There has never been a way for them to access these high-end opportunities. Until now.
Zest Fund was created in hopes of tearing down these walls of access. CEO Stuart Farmer states “Zest creates access where there was none. We are disrupting an industry by providing a gateway to a world that, until now, was only accessible by Silicon Valley elite. It’s about leveling the playing field and giving everyone a fighting chance.” Zest utilizes a cryptocurrency syndicate system to pool funds together from public sources in order to partake in these opportunities as a single entity. What that means is that by owning the Z token (purchased off of LATOKEN during their IEO) you would then own a piece of this larger fund which would be placed in the hands of Silicon Valley’s top performing professionals. Then, when profit is shared back to Zest, the fiat is moved back to the exchanges and Z tokens are bought at market price. After being purchased the tokens are burned, removing them from circulation permanently and creating a constantly decreasing total token amount. In the case of a total buyback Zest would then open their doors to a new, larger funding round.
Zest is launching soon and their initial exchange offering will be available on LATOKEN. Surely equality in opportunity is a welcome addition to any industry and if they succeed in their mission they’ll be providing a great service to a lot of people.