Tokenise your company’s shares
Contributor Ben Hedenberg
Ben Hedenberg https://www.linkedin.com/in/benhedenberg
Only a few of all companies are listed on a stock exchange
The development of new international standards has facilitated issuance of token based shares (blockchains) on centralised or decentralised ledger technologies. This development has opened for additional financing opportunities for a large number of companies.
The major advantage of the blockchain technology is a secure instant transfer of any digitised exchange units, that are traceable without need for any intermediary parties and is trusted by the transacting parties.
CSD Tokenisation
We offer every company a turn-key solution to, wholly or partially, digitise private shares and deposit them on a blockchain-based central securities depository (“CSD”). Big Ben in partnership with SideSwap offer a platform with a digital share register, cap table, and tokenisation (“blockchain”) of equity shares in a CSD based on a distributed ledger technology (DLT).
Tokenisation of venture capital and private equity will disrupt the venture capital and private equity market
Currently most VC/PE funds are set up as limited partnerships (“LPs”). The investors and managers of the VC/PE fund typically receive a share in the fund’s profits by way of a carried interest in the fund; this may be paid to a carried interest partner, often itself another LP of which the sponsors are partners.
In the context of tokenisation, a fund would be split into units, with each unit representing an “interest” in the economics of the fund. Investors would subscribe for tokens representing an interest in the fund. Funds could be structured as evergreen or open-ended funds (where there are no limits on the number of people who can invest, or the number of tokens issued) or closed ended investments (where a fund would issue a fixed number of units).
Regardless of whether the fund is open ended or closed ended, the tokens are freely tradable once issued.
Key advantages of tokenising shares
Quick to create, deploy and issue share tokens
Deploy blockchain identities for your investors.Integrate KYC/AML. Utilise our self-service and scalable platform.Servicing
Automated cap table management.Direct communication with investors. Schedule the delivery of transaction and position reports.List project offerings and onboard investors
Create and distribute digital offerings.Customise the investor journey. Provide diversified assets: funds, debt, equities etc. Automated KYC and AML processes.Peer-to-peer trading
Improved liquidity of assets for investors. Eliminatation of counter party risk of transactions. Instant ultra-fast settlement.Allow investors to manage their portfolio
Tracking and management of digital asset portfolios. Monitoring of transactions and project updates. Management of blockchain identities and compliance. Securing digital asset ownership.
Hope you enjoyed this article !
See ya in the inbox !
Sebastian Amieva
Investor / M&A Expert / Mentor
www.sebastianamieva.com
Brought to you by my friend, Scott Oldford
Scott Oldford is one of the top online business mentors and advisors and he also owns dozens of businesses that collectively generate tens of millions of dollars a year in multiple niches, countries (and even languages), across the world.
In his new "Investing with Scott" newsletter, he gives you a behind the scenes look into acquiring, building and scaling businesses based on his experience of helping 100's of Entrepreneurs scale past 7 & 8 figures.