Objective: The Demo Fund aims to achieve a target exit value of $1.68 million over a 10-year investment horizon, followed by a strategic exit in year 11. This will be accomplished through a dynamic investment strategy in the web3 sector, leveraging the growth potential of digital assets and blockchain technology.

Investment Structure

Investment Period: 10 years, with an additional year for position liquidation.
Monthly Investment: Starting at $500, escalating annually with a 4% inflation rate.
Total Investment: Approximately $72,037 over 10 years.

Required Return

Target Annual Return: Approximately 64.24%.
Investment Focus: High-growth web3 projects, balancing risk and return dynamically over the investment period.

Year-by-Year Strategy

Years 1-3: Aggressive Growth Phase
Target annual returns above 70%.
High-risk tolerance, focusing on emerging web3 technologies and early-stage projects. Active portfolio management to capitalize on high-growth opportunities.

Years 4-7: Growth and Consolidation Phase
Aim for annual returns around 64-70%.
Begin diversifying to reduce risk while maintaining high growth.
Balance the portfolio with a mix of venture-stage and established web3 projects.

Years 8-10: Stability and Capital Preservation Phase
Target annual returns closer to 64%.
Shift focus towards capital preservation.
Gradual transition to more stable, proven web3 investments and digital assets.

Year 11: Strategic Exit
Implement a structured exit strategy from positions to realize gains.
Focus on market timing and liquidity to optimize returns.
Complete liquidation or transfer of assets according to the fund’s objectives.

Key Considerations

Market Volatility: Preparedness for the inherent volatility of the web3 market.
Risk Management: Robust risk management strategies throughout the fund’s lifecycle.
Regulatory Compliance: Adherence to evolving regulatory frameworks in digital asset markets.
Performance Monitoring: Regular reviews and adjustments based on market conditions and fund performance.

This roadmap outlines a comprehensive strategy designed to achieve the ABC Demo Fund’s ambitious financial goals, with a clear focus on maximizing returns while managing the risks associated with web3 investments.