Xillion Incubator Update: June 2023

7 min readJun 6, 2023

Hey Xillionaires,

Below is an update from the Xillion team to quickly summarize how things have been going with our Incubator, and to let you know our vision and strategy.

Before we start, we would like to briefly remind you what we are building.

Our business model with Xillion is simple: we build and incubate startups, make them profitable, and then we will take them public / raise future rounds or sell them to larger market players.

By holding XIL (which is our native token), you gain exposure to all of the projects we incubate, which means that you can get a certain % of free tokens/equity in each project incubated. For example, if you hold XIL you could get a certain % of free tokens/equity for every startup we incubate + you could buy some discounted tokens or equity by using your XIL as well. So as you can see the utility is pegged directly to the startups we incubate.

This way, by holding one token, you get exposure to 4–5 projects at the same time by diversifying your portfolio — increasing your odds of having a winning ROI.

We are working to be as diversified as possible in our product categories. For example, at this moment we are incubating the Real Estate Tokenization project AllSet, AI-empowered Asset management platform Hedge AI, EdTech startup Learn2Earn, SocialFi project Amplify, etc. As you can see, our portfolio is diversified by 5 growing industries, and even if one of those projects succeeds, it would bring great success for all of the holders of XIL.

Update

Our primary focus at this moment as you all may know is with AllSet’s development. We see significant interest in this product and believe that when we launch this, users’ growth will follow.

At this moment we are working on the platform, doing some closed-door pilots, onboarding more properties, and signing some partners.

As we mentioned earlier, we expect the platform to be ready at the end of this summer, so we could start generating sales and begin user onboarding. In the meantime, we’ve also launched a YouTube channel for AllSet and already gained 5,000 views and 178 users who have sent us an email request asking to be added to the whitelist.

We are still testing and making experiments with the formats, but the main goal is to grow the brand power and attract users. Additionally, we’ve signed 12 new properties and established partnerships with 2 new real estate developers in the US and UAE. We are doing this because we want to be ready before the launch, which is why we are paying so much attention to business development and preparations now.

The Price and Current Markets

It’s quite an uncertain time for the markets as you can see, and even Elon Musk in his recent shareholder meeting recommended not paying attention to stock prices during this year, but instead focusing all resources on operations and developing the business at hand.

We agree with him on some of the points he made. The market can go up and down, and XIL price may fluctuate as well. However, as an incubator, we have to make sure that the products we incubate will perform well.

If AllSet or other projects perform with great results, all XIL holders will enjoy great value from the tokens they receive for free. Even if the price will be fluctuating during this process.

The Venture Capital business (especially incubation) is a long-term game, and none of the investors should expect quick results or feel 100% sure that it will work out successfully. However, when incubated projects rise in value, the value and profit for investors hit amazing highs as well.

Also, understanding that we operate with limited resources and have been actively investing additional capital by ourselves, we want to make sure we will be able to build the projects as perfectly as possible, launch them successfully, gain traction, and deliver value to all of the token/equity holders.

Anyone who has ever built a startup or launched a business from scratch knows how difficult it is to build a great functional product while growing it with limited resources.

It takes time, patience, and a plethora of resources to propel you to the next step (especially during unfavorable market conditions). But, as we can see currently, things are going well for the incubator.

We can say that currently, the odds for the incubator are quite good even though nothing is guaranteed.

AllSet is gaining attention and meeting a considerably good demand from real estate developers and investors. The waiting list of users is growing (tripled since the previous update and has a little less than 3,000 real estate investors). Of course, there’s no guarantee that we will succeed in the startup and VC market which has a 10% success rate (incubate 10 projects and see 1 of them succeed) considered as a success rate. However, we believe in teams and the projects we build, and believe that they will succeed.

Summary

Holding XIL is a long-term game. It is the same as being an LP in a venture fund such as A16Z or an incubator, such as Y Combinator, where all the investors are committed to a 5–7 year period.

Of course, in our case, it’s a way shorter period, but this business is still a long-term game.

Even though Xillion is heavily undervalued currently, when AllSet will be launched it will deliver the first positive major results. The success of the incubator is directly and exclusively dependent on the success of the projects it incubates, and the value of the incubator is pegged to the value of the incubated projects.

As a business, we have a choice with how we use the resources:
1. Spend them all on marketing, have a quick price pump, and then get back to previous levels with no additional value.
2. Build successful projects that generate revenue, raise capital for them, and provide all token holders with a way higher return. At the same time focus all the attention and resources on building, scaling, and promoting our projects and the incubator itself but rationally and mostly organically.

Of course, we believe that the second option is a way more reasonable way to use the resources and which is more important is the most beneficial way for all the token holders, because the potential value is way higher.

There might be ups and downs in price, but don’t pay too much attention to that. Because XIL’s value is pegged to the value of incubated projects, to discover the true value of the XIL token, we need to see at least one flagman incubated project (like AllSet for example) launched and fully entered the market. Then we could start making conclusions on what’s the fair value and evaluate the results that Xillion has achieved as an incubator.

Before any of those projects are launched, any price actions are more speculatory rather than a fair reflection of the results of the company. Additionally, It’s a good time for those who like the concept and projects we incubate to acquire more tokens and build a strong position at a low price.

At the same time, we want to build a strong brand around Xillion, so this Friday we launch a YouTube and TikTok channel where we will be covering the VC, Crypto, Investments, and other relevant topics with product placement and integrations of our portfolio companies. This way we will attract more new users, higher buy-side demand, and new token holders.

Talking Numbers

Imagine if AllSet will get a valuation of $10MM during one of the fundraising rounds after the launch (theoretically).

Therefore, even 10% of what Xillion holds will be valued at 1M, which will significantly boost the value of the XIL token.

That’s where the real value of being a holder of XIL is. You are guaranteed free tokens/equity of every project we incubate at the best possible valuation (same as seed investors get), which increases your chances to potentially make a profit. If they are doing well, the value of that token/equity is growing significantly as well. The longer you are a holder, and the higher the projects grow, the larger the value of your share in those projects will be.

It is simple but still requires patience as with any other VC deal. Of course, nothing is guaranteed in the startup market. Most startups fail, but, the risk-reward ratio with incubators is always good and well-balanced.

So, to summarize it all once more, we will keep investing as much effort and resources as possible to build and scale our incubator’s projects.

Soon, most of the efforts will go into AllSet’s development/launch. We expect to have it fully ready by the end of this summer and start onboarding users right away. Therefore, we have been accumulating and concentrating all of our resources on that goal.

Thank you all for reading, and have a great day!

About us

Xillion.one - a Web3 Tokenized Incubator that provides every XIL token holder with free tokens of every project it incubates.

We build projects from scratch and create synergy between them. We combine the VC and PE approach to building companies by growing their value and managing investor capital. We simultaneously operate as investors and founders to amplify the results.