Fund StructureThe Fund’s fiscal and regulatory jurisdiction is Gibraltar, which involves a flat 10% Corporate Tax Rate; Income on interest, dividends and royalties (e.g., domain sales) are tax exempt; EU membership; established regulatory regime, based on UK rules; high level of professional legal, accounting and administration services; British Common law legal system; each Top Level Domain (TLD) is held as a separate Special Purpose Vehicle (SPV), which provides clean and transparent cash-flow and valuations, and allows for a wide range of different exits.
Our StructureWe have created a shared services company, which is set up to enhance the profitability of Domain Venture Partners (DVP) by acting as the intermediary between the Fund, which controls the assets and the revenues derived from them, and the wider eco system of service providers and distribution channels. Domain Venture Partners (DVP) benefits from a significant discount on the fixed costs charged for operating each TLD and has developed innovative strategies to enhance the monetisation of the Top Level Domains (TLD).
OpportunityThis new industry is currently a ‘closed’ market with very high barriers to entry, as the application round is concluded, and the number of players very limited. The early entrants benefit from very attractive early-stage valuations and the significant upside likely to occur as the new TLDs start generating revenue and become an established core feature among internet users. There is significant momentum behind it, supported by the participation of many of the world’s largest brand names and the resources facilitated by ICANN.
Domain Venture Partners was established to help supply the funding, technical support and operational needs that have arisen among the various participants in ICANN’s new generic Top Level Domain (TLD) name process. The two funds were launched to take advantage of the opportunity that exists to become a major gTLD Registry Operator by acquiring (via the application round and subsequent consolidation) the most attractive assets that are being created as part of this process. Domain Venture Partners’s funds are authorised and regulated by the Gibraltar Financial Services Commission.