European Commission advisor predicts DESICO will “bridge the gap” between ICOs and investors
Advisor to the European Commission on Alternative Finance, Ronald Kleverlaan, believes that DESICO will “bridge the gap” between “ICOs, and the traditional way of fundraising either through equity crowdfunding, business angels, or a traditional IPO.”
With more than a decade’s worth of experience as one of Europe’s thought-leaders on crowdfunding, Kleverlaan praised DESICO’s decision to assist all ICO’s listed on the DESICO platform with their crowdfunding process, as well as the DESICO team’s game-changing idea to issue security tokens in full compliance with the law.
Regarding DESICO’s current position of being the world’s only fully legally compliant platform which connects ICOs and investors, Kleverlaan explained: “businesses need to have an organisation that will guide them through the fundraising process, how to set up the structure, and how to find out about the legal models surrounding crowdfunding; especially from individual investors. Those are the most important parts for the entrepreneurs, and DESICO provides them all. Meanwhile, the most important part for the investors is that they have an organization that will select the best projects that are both feasible and a good investment opportunity.”
Kleverlaan added that the time of DESICO’s arrival in the crowdfunding world is “perfect”. In his opinion, this is due to the increasing popularity and successes of raising funds via crowdsales over the last “five or six years”, albeit in a highly unregulated governmental and financial environment.
The lack of official regulations is why Kleverlaan believes that security tokens will become subject to stricter regulations from governmental and financial institutions. However, these tighter regulations are what he believes will lead to the standardization of security tokens as a mainstream fundraising method for promising startups.
“I think the timing for DESICO is now perfect,” he continued. “We’ve been experimenting with equity crowdfunding for around five or six years now, and it has shown itself to be a successful way of raising funds. However, it is still mostly connected with the traditional financial industry and traditional financial models. On the other hand, we have seen the emergence of ICOs, but they exist in a very unregulated market. Now regulators are looking into applying stricter regulations to security tokens. Eventually, most regulators will see security tokens as being a normal financial instrument through which companies can raise funds. Therefore they will be regulated under traditional or slightly adapted regulations.
“In short, security tokens can be standardized now. We have seen the standardization of equity crowdfunding and how it has become very successful, and we have seen many organizations use ICOs as a successful way of crowdfunding. Now it is only logical that we see them become standardized.”
In addition to his role as the at the European Commission, Kleverlaan is also the co-founder of the European Crowdfunding Network, and Director of the European Centre for Alternative Finance at Utrecht University.
In March 2018, he joined DESICO as its Crowdfunding Advisor. In his own words, his role at DESICO will help create a long-term crowdfunding industry: “regarding my involvement with DESICO, I think it’s very important that I use my decade’s worth of experience as a researcher or as a creator of these foundations to lobby to regulators and policymakers, because the only way of succeeding is getting in contact with them and doing it together. By this collaborative approach, DESICO will create an industry that succeeds in the long term.”
Other DESICO advisors include Electronic Arts co-founder, Jeff Burton, plus ‘Daily FinTech’ co-founder and author, Dr. Efi Pylarinou.