SPiCE VC Delivers Third Investor Payout, Redefining What’s Possible in Digital Securities

SPiCE VC, one of the earliest venture capital funds to adopt a fully tokenized structure, has announced its third investor payout, scheduled for execution at the end of June 2025. This latest distribution brings total returns to investors to over 2.1x Distributions to Paid-In Capital (DPI)—more than double what even top-decile early-stage VC funds typically deliver by year seven.

While Blockchain Capital’s BCAP token was the first to tokenize fund access in early 2017, SPiCE—launched later that same year—took a broader leap forward by bringing the entire fund architecture on-chain. From investor onboarding and compliance to performance tracking and distributions, SPiCE pioneered a model that fully integrated blockchain into venture capital operations.

Digital Securities: From Concept to Market Force

Digital securities—also known as security tokens—are blockchain-based representations of real-world financial instruments like equity, debt, or fund shares. Unlike cryptocurrencies, these tokens are governed by existing securities regulations and are tied to underlying assets, not speculation.

The idea took off in 2017, when the first security tokens were issued under compliant frameworks. These tokens offer a compelling upgrade over legacy systems by combining the investor protections of traditional finance with the transparency and efficiency of blockchain.

Why they matter:

• Programmable Compliance: Smart contracts automate rule enforcement for who can buy, sell, and hold.
• Transparency: Real-time ownership and transaction history are recorded on-chain.
• Liquidity Potential: Investors in traditionally illiquid assets (like venture funds) can gain earlier, partial exits through secondary markets.

SPiCE VC didn’t just adopt this model—it helped define it.

Why It Mattered to Be Early

As one of the initial investors in SPiCE VC, I saw this as more than a novel fund structure—it was a bet on where capital markets were going. Rather than chase hype, SPiCE focused its thesis on infrastructure: backing the companies building the core plumbing of the blockchain and tokenization economy.

And it’s paid off.

The fund’s portfolio includes:

• Securitize, the industry leader in compliant digital securities issuance;
• Blockdaemon, powering blockchain infrastructure across dozens of networks;
• Ripio, a fintech driving crypto adoption across Latin America.

These weren’t speculative plays. These were foundational investments—and they’ve become some of the biggest drivers behind SPiCE VC’s standout performance.

From Locked Capital to Early Liquidity

Venture capital is notoriously illiquid. Investors typically wait 8 to 12 years for a return—if it comes at all.

SPiCE VC broke that cycle.

After executing the first-ever investor distribution by a tokenized VC fund in 2022, the firm has now followed up with two more payouts, offering real, early liquidity to over 400 global investors.

It’s one thing to tokenize a fund. It’s another to deliver value through it. SPiCE is doing both.

Performance That’s Hard to Ignore

With a Total Value to Paid-In Capital (TVPI) now over 6.3x, SPiCE VC sits in rarefied territory. Top-decile venture funds typically return around 3.0x–4.5x. The market median hovers between 1.3x and 1.8x.

SPiCE is more than doubling the industry’s best.

Founder and Managing Partner Tal Elyashiv puts it succinctly:

“We built SPiCE with a clear vision: to lead the blockchain investment frontier and deliver outsized value to our investors.”

He’s not exaggerating.

Leading by Example in a Transforming Industry

 With operations in the U.S., Singapore, and Israel, the fund embodies the cross-border potential of tokenized finance and the institutional quality blockchain capital has long promised.

If the first wave of tokenization was about proving viability, SPiCE is showing what success looks like at scale. Its fully tokenized structure—from onboarding to exit—offers a glimpse at how the next generation of venture funds may be built: global, transparent, programmable, and liquid.

While most digital securities funds today are focused on blockchain projects, it’s only a matter of time before we see tokenized funds targeting other industries including what may be the most transformative technology in human history: artificial intelligence.

Why This Payout Signals More Than Performance

This third payout isn’t just a win for investors—it’s a broader signal that digital securities have moved from theory to traction. SPiCE VC didn’t just embrace tokenization. It helped mature it.

And for those of us who backed it early, it confirms what we believed all along: that blockchain would transform more than currency—it would transform capital itself. At Securities.io, we’ve been reporting on this shift since 2018, watching tokenization evolve from an early concept into a tangible force in global finance.

“We’re not just investing in blockchain—we’re building the ecosystem,” Elyashiv said.

In 2025, that ecosystem is delivering. And it’s only getting started.