What do you want to accomplish?
Digital investment instruments are flexible – they can be used to tokenize traditional asset classes such as equity or debt (bonds) or they can be built up of different features that combine into a novel instrument. So, the first step is to clearly conceive of what your business needs.
Is it a more efficient way to manage your company’s equity and shareholder obligations? Read More…
We’re confident that blockchain-based electronic instruments represent a future pillar of the private market financial sector; offering massive operational efficiencies and enabling investment features in ways that are difficult or impossible to achieve in conventional paper-based instruments.
Our analysis found that there are still a number of blockers preventing this new asset class from fulfilling its potential. To achieve our mission of enabling a decentralized economy, we’ve built a platform that addresses these critical obstacles to market acceptance. Read More…
Transactional Friction and Liquidity
Prof. Aswath Damodaran, widely cited valuation expert from NYU’s Stern School of Business, makes the assertion that regardless of business type, private companies suffer from a 20-30% valuation discount due to the illiquidity of the private equities market. While this discount level generally applies to formal valuations (such as those determined when raising capital), owners of illiquid private securities often Read More…
The Private Capital Shift
While the structural opportunities appear largely the same, the underlying dynamics of the global capital market are evolving. We see this manifested in the global decrease in mid to small cap securities offerings and the growth of the $1bill+ megadeals. From peak to trough, the current US market has seen a dramatic reduction (81%) in the number of IPO’s per year when compared to the mid 1990’s. Read More…
Blockchain
Distributed ledger or blockchain’s great innovation is the ability to create distinct digital objects without the need for a central organizing authority. To do this, all participants in a network of unrelated parties manage equally-valid and continuously updated copies of a record of all transactions on the blockchain, making changes only possible with community consensus.
There are several well-adopted blockchain protocols, each with their own particular strengths and weaknesses. These include names such as Etherium, Stellar, Bitcoin, Ripple, Hyperledger, and others. Each of these has their own native coin and many allow for the creation of tokens within their blockchain Read More…
