LONDON, July 5, 2018 /PRNewswire/ --
Transformative new platform launching in autumn will allow SMEs efficient access to a significantly wider pool of global capital
Globacap, a digital capital-raising platform, is offering the first issuance of equity on the public blockchain with oversight from the UK's Financial Conduct Authority (FCA). The capital raising will provide proof of concept for Globacap's transformative new platform that will help SMEs efficiently access a significantly wider pool of global capital.
SMEs form a vital part of the European economy. Across Europe, SMEs account for 67% of private sector employment (90 million people) and 57% of value added (€3.9 trillion). However access to funding is still a significant issue for SMEs.
Globacap addresses this through providing a means for SMEs to access capital on a global scale, whilst affording both institutional and retail investors the full rights associated with equity and debt securities.
Capital raising via blockchain tokens has grown in importance, with over $4 billion of capital raised through this means in 2017. However, progress is limited by lack of trust in the system. Globacap and its legal advisors, Hogan Lovells, have been working to address this, creating a public blockchain token that forms a legal shareholding under UK company and securities law. The Hogan Lovells team is led by Richard Diffenthal and Michael Thomas.
Globacap's SME platform, to be launched later this year, will allow businesses to raise capital from a global audience while managing all regulatory and compliance aspects. Institutional and retail investors gain access to opportunities, invest using a range of crypto and fiat currencies, and benefit from more transparent valuation and post-issuance liquidity.
Myles Milston, CEO and co-founder of Globacap, commented:
"This is transformative to the securities industry, paving the way for SMEs to more efficiently access a wider pool of global capital. The Innovate team at the FCA have been pivotal in this milestone, allowing us a quicker route to launch our proof of concept while having regulatory oversight."
Globacap is bringing the ICO form of capital raising into the regulated space, and into the mainstream. Its automated platform streamlines the capital raising process from start to finish while issuing debt and equity securities as blockchain tokens, providing SMEs with a new route to access global capital.
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