Disrupting Private Equity With Ether & CFA
- We’re creating a Crowdfunding platform for the cryptocurrency age
- Key addition is a pool of analysts that assess projects seeking funding
- Among first deals planned on platform are investments in renewables
- Based on Ethereum blockchain, with eye on distributed ledger platforms
- Token Generating Event (TGE) is coming soon
There are a lot of vehicles that promise to unlock the power of blockchain to investors. Technologically, they offer so much. What most fail to mention are the risks.
We believe developments in blockchain, and its adoption in the real economy, can be made more secure through intelligent investing. Those raising crypto (or any other) currency need to meet the criteria of a responsible businesses; those investing, need to have the information to make informed decisions on where to vest their funds. When either of the two falter, trust is lost not only in the actual project, but the broader, as yet nascent, blockchain world.
Our solution is to build an independent crowdfunding platform that has an in-built expert function. We propose to recruit Chartered Financial Analysts to screen projects on the platform, and to provide a qualified assessment of the business potential and the risks. This would deliver to potential investors the kind of expert advice that comes as standard in the world of securities or private equity, but which has been lacking in digital currency investments.
Bringing in qualified risk assessment tools to cryptocurrency-denominated assets should give investors added confidence to provide funds. At the same time, it would encourage start-ups to make sure they have a mature business proposal before they ask for financing.
We believe that our development of a professional grade crowdfunding 2.0 platform will democratize the world of private equity investments, marrying greater access to the world of fund-raising for both investors and start-ups with qualified, professional risk-management.
What the platform will also allow is investment opportunities in markets that would typically be difficult to access due to issues such as language constraint. The platform will aim to introduce upcoming companies from regions such as China. Normally, such companies lack the English ability to attract overseas funding during the hyper-growth early stage. Our plan to have CFA-qualified opinions circulated in several languages should provide venture-capital stage access to such opportunities and the business and risk assessment literature that investors require before committing funds.
The CFA charter is the gold standard in the investments industry resulting in the potential for Enhanced Investor Returns (EIR).
The vehicle behind this project is Digital Disintermediation (DD) Pte Ltd. a Special Purpose Acquisition Vehicle (SPAC) domiciled in Singapore. DD is a FinTech affiliate of energy financing specialist, Lincoln Liquidity (LL) Pte Ltd.
Ethereum-based blockchain is the catalyst that made our vision technically possible. DD’s Technical Advisor for the project is DEVnet, which has strong expertise in blockchain technologies.
DD was created to launch and operate an independent, digital crowdfunding platform to help nascent and mature, mid-size businesses raise financing in digital currency. The platform will be known as the DDEcosystem.
While DD will screen projects before they are allowed onto the platform, the CFA holders will provide the next-level, professional assessment. As the value of DD’s tokens will be tied to the success of the platform, we are incentivized to allow only the best opportunities to be put in front of investors.
CFA-certified analysts will be asked to offer their opinions independently, without any influence from DD or direct employment by DD. We have already reached out to members of the CFA community and feel confident in their interest to participate in the platform.
The idea behind DDEcosystem is to combine professional investment expertise with crowdfunding, while furthering the development of blockchain technology.
This gives added security for both investors and companies that seek funds, thus differing from typical Mergers & Acquisitions (M&A) crowdfunding platforms like Axial.
DDEcosystem will support three kinds of fundraising campaigns: a Token Generation Event (TGE), crowd investing, and crowdfunding. No other platform has access to the same network of investment professionals while offering a wide variety of options on a nimble platform.
Further down the road we will be working on expediting and enhancing the integration of financial markets with smart contracts via distributed ledger platforms such as R3’s Corda Platform.
Fulfilling DD’s Ambitions
To create the DDEcosystem, DD will be carrying out a Token Generating Event in the near future. TGE will commit the team at DD to complete the build of the DDEcosystem platform within three years. DDTokens will also ensure that investors in this project are protected since the blockchain community will take on the role of regulator.
Details of the TGE will be posted soon, along with an explanation of terms.
About Lincoln Liquidity
Singapore-based Lincoln Liquidity has been helping to facilitate liquidity events since 2013, the same year as the first Initial Coin Offering (ICO), Mastercoin, sold tokens instead of equity to global participants. With our help, Reach Energy Sdn Bhd, the largest Special Purpose Acquisition Companies (SPAC) in Malaysia, was able to successfully list and raise an equivalent of USD 232 million or MYR 750 million at the time while the investor demand was phenomenal as the offering was oversubscribed by roughly 42 and 11 times in in the retail and institutional markets respectively.
We see similar investor demand for ICOs at the moment and we are aiming to provide not only high quality mid-market M&A opportunities but also open the world of private equity (PE) to the masses, instead of being mainly for institutional and high net worth (HNW) entities and individuals.