Investment Models
Investment vehicles
Performing due diligence when investing is a must. As an investor you need to know how investing in digital property works, and fully understand the pros and cons. In this section, we will introduce the investment vehicles presented by InterConnect Capital as well as the risk / reward relationship associated with each.
Vehicles for investing in Digital Property
‘A la carte’ buying –Investors may purchase one or more individual pieces of digital property. This type of investing allows investors to select specific areas they are knowledgeable about.
Property by Group – data sets, genre-specific environments, and other types of information may be grouped together and sold as a package. For example data sets on certain types of amino acids maybe grouped together as a specific type of data.
Digital Funds – Digital funds allow an investor to buy properties consolidated into a group which is managed by a property manager. Because they are diversified, digital funds may present a lower risk than single properties.
Models - While vehicles provide the mechanism to invest in Digital Property, the models presented by InterConnect Capital provide the various methods by which digital property can be acquired, built, and improved.
Models for purchasing Digital Property
Speculation Model: An investor may elect to purchase digital property before it is built ‘on spec’ or speculation that the property will provide an ongoing passive income from the property. Once an investor has a share of a property and that share conveys certain digital property rights, that investor becomes an owner of those rights. They are then entitled to receive income benefit from those rights.
Partnering model: An investor who is not in a position to market, maintain, or negotiate to receive income from conveyed rights can choose to partner with a company such as Rational Data, which has a framework in place to market those rights.
How to assess valuation of a Digital Property
As in real-world real estate, the value of digital property is determined by supply and demand in the marketplace. Today there are data sets that already have an established market rate, and therefore comparables in relevant marketplaces. Below is an example valuation equation for collaborative spaces. (More information can be found at www.interconnectcapital.com and www.internationaldigitalexchange.com)
