Brevan Howard has a $25 million refund right on its investment in Berachain

According to The Block, Unchained columnist Jack Kubinec disclosed in a recent report that Brevan Howard's venture capital investment in Berachain is nearly "zero risk." Documents made public this Monday show that Berachain granted Brevan's crypto investment subsidiary Nova Digital a special right—a one-year refund guarantee on its $25 million Series B funding. This means that despite Brevan co-leading a $69 million funding round for Berachain at a valuation of $1.5 billion, it can still recover its entire investment after the token generation event.

It is reported that this right will remain effective until February 6, 2026. Kubinec pointed out in the report: "Such refund clauses completely shield Brevan's fund principal from risk, which is fundamentally different from traditional venture capital models. If Berachain's BERA token performs well, the fund will achieve excess returns; if the token underperforms, the fund can exercise the refund right." Currently, the trading price of the BERA token is about $1, down approximately 67% from Brevan's investment cost of $3. According to data from The Block, the fully diluted valuation of the token is now $536.7 million. The Series B funding was led by Framework Ventures, with participation from Arrington Capital, Hack VC, Polychain, and Tribe Capital. Berachain also completed a $42 million Series A funding in 2023. It is still unclear whether other investors also have refund rights.