Solving a problem at the core of our societies
Limited liability companies fuelled the economic rise of the West – no individual could fund a railway. Society made incorporation possible through laws and public records offering secure property rights. We have made the financing of large, foreseeable projects easy, but we still struggle to finance, small, high risk – high impact ideas. Our future depends on the ability to allocate capital to such ideas. If only we could unleash the creative forces of capital for the rather smaller, innovative and creative concepts of the new economy…
The lack of transparency and trust is arguably the main problem in creating and growing a new venture. Even with a clear value proposition, the act of funding ventures is risky, slow and inefficient. The lack of transparency greatly increases friction.
- A man may be keen to invest, but does the chairman really have power of attorney?
- How can I use my shares as collateral – or even prove my ownership to the shares?
- Who are the other owners? My competitors or maybe fraudsters?
- What is the purpose of owning a share if it cannot be sold and follows me to the grave?
By mid 2018, a powerful idea emerged and took shape: we can write the “rules of the game” into code and let businesses and investors build a transparent, European shareholding registry on blockchain. In effect, we build a platform where an ecosystem of innovative use cases may emerge on top. We create value through simplified compliance and corporate governance, but mainly by lowering transaction costs. The early effects is to make unlisted shares an efficient vessel, capable of shifting idle, intelligent capital onto unorthodox, creative ideas.