Exponential Group Launches Exponential Capital & Markets to Become The First Vertically Integrated Seed Round to Digital Security Issuance and Secondary Trading Firm
Monday, July 29, 2019
Based in Toronto, Montreal and New York, ExC&M is a global advisory and digital asset platform with broker dealer capabilities. ExC&M provides strategic advisory, capital raising (through our partnership with a FINRA registered broker dealer), research, and M&A as well as digital asset issuance and trading services.
ExC&M’s roots stem from ExG’s venture arm, Exponential Ventures (ExV), a digital security focused venture capital fund that was the sole seed investor in the world’s first federally approved digital security offering. The goal of the fund is to invest in visionary founders and to create meaningful living for every person on the planet. ExV places its emphasis on founder-centric investing, technologists first, and establishing and maintaining deep relationships with governments and investors.
Due to clear market demand from an acceleration of new start-ups and with the launch of ExC&M, ExG will focus on ventures through the entire lifecycle, from early-stage seed capital, business advisory, later stage capital raising, digital security issuance and trading.
In addition to focusing on the entire venture lifecycle, ExG will have several ways for investors to gain exposure through investments in digital securities along a risk/return profile spectrum.
As the industry develops, ExC&M’s aim is to drive positive social change by providing services in an understandable way to world leading entrepreneurs, companies and investors as they enter and navigate the digital asset ecosystem, while also driving the democratization of global digital asset issuance and trading.
ExC&M’s strategic focus is concentrated in four key areas:
Market Pulse — Educating and advising ventures and investors on navigating and entering the evolving digital asset industry.
Capital Syndication — Building a global and highly differentiated capital syndicate focused on digital securities.
Digital Asset Lifecycle — Becoming a premier global digital asset issuance and trading platform.
Social & Exponential — Working with socially conscious clients with a higher purpose and exponential ideas.
The ExC&M team, in connection with ExG’s broader strategic initiatives will build out a number of software solutions that will be provided to clients ExG is also working on the roll-out of a digital asset fund which will comprise a basket of top-tier digital securities mostly likely including real estate as well as other asset-backed digital securities and exposure to the Venture Fund’s portfolio.
Exponential Capital (ExC) is a global digital asset advisory with broker dealer capabilities. We envision a world where capital and innovative ideas meet in the fastest, most compliant and efficient way. In that regard, our mission is to drive positive socio-economic change through advising world leading entrepreneurs, companies, and investors as they enter and navigate the digital asset ecosystem.
Strategic Advisory: We provide clients with strategic advisory, with a particular focus on preparing clients for capital raising mandates involving digital securities and blockchain technologies.
Capital Raising: In partnership with our FINRA registered broker dealer, we provide legally compliant fundraising services and access to our global investor network to enable clients to reach their capital raising goals through digital securities offerings. We are focused on providing global investors with highly vetted, high quality investment opportunities.
M&A: We provide ventures and companies in the digital securities and blockchain ecosystems with expert buy-side and sell-side advice regarding mergers, sales, acquisitions and joint ventures.
Research: We provide issuer and investor clients with access to leading edge, comprehensive market analysis and insights on emerging trends in the digital securities and blockchain industries.
Exponential Markets (ExM) will be a fully integrated digital asset issuance platform with secondary trading capabilities. We envision a world where digital securities can be transferred seamlessly by anyone anywhere across the world. In that regard, our mission is to drive positive socio-economic change through the democratization of global digital asset issuance and trading.
Digital Security Issuance: We provide issuers with a full suite of digital security issuance services. From KYC/AML services, to digital security custody, to the issuance of digital securities, we will cover the entire lifecycle of a digital security issuance. Our compliance rules engine and investor friendly platform will facilitate regulatory compliant capital raises, complete with customizable governance and investor management tools — all powered by blockchain technology.
Digital Security Marketplace: Our trading platform will enable digital security investment holders to access global liquidity opportunities for their early stage digital securities investments. Our compliance rules engine will ensure all assets are constantly abiding by applicable laws as they are exchanged on markets across the course of their trading life. Through this approach, investors are given the opportunity to liquidate their digital security investments earlier than traditional investments, if they so elect.
Who We Are
Consisting of a team of former investment bankers, corporate lawyers and startup executives, the ExC&M team possesses a wealth of experience in traditional finance, venture-backed technology startups, and digital asset markets. Each member of our team has previous experience working in the digital security industry, with all of us having deep experience working with one another. Our unique backgrounds allowed us to identify several exciting trends at the intersection of blockchain and capital markets.
Over the last two years, the digital securities ecosystem has developed at breakneck speed. Despite limited trading of digital securities currently, millions of dollars have been raised through Digital Security Offerings (DSOs), and the value/use cases for DSOs has begun to capture the attention of issuers and large institutional investors alike.
Through these observations, ExG identified a unique opportunity to build out a vertically integrated digital security investment firm complete with a VC arm (ExV), a capital raising and strategic advisory arm (ExC), an issuance/trading platform (ExM) and a marketing division to assist clients as they move through this new and exciting ecosystem along with several investment opportunities for investors to gain exposure to the digital security space.
The ExC&M team will be led by co-founders, CEO, Kyle Fry, and President & COO, Josh Hurwitz, both of whom have experience operating companies in the digital security space. Exponential Group co-founder, James Wallace indicated, “Our Ventures team is committed to investing in and supporting founders on the leading edge of the digital asset ecosystem. Kyle and Josh bring complementary expertise into the Exponential Group as well as shared values and vision. ExG was the sole seed investor in the world’s first federally approved digital security and through that experience created a “Seed Round to Digital Security” blueprint stepping founders through seed round to digital security offering to liquidity. With the addition of ExC&M to the Exponential Group, we are in a position to seed-fund startups, advise those startups in raising capital, and assist with the issuance and secondary trading of digital securities.”
ExC&M co-founder, CEO, Kyle Fry noted, “With a vertically integrated digital asset firm, and as innovation accelerates, there is significant opportunity in supporting and automating components of the entire funding lifecycle of a new venture. Our focus will be on finding and assisting extraordinary founders and maturing their ventures, while also bringing sophisticated investors unique and innovative investment opportunities. These investors will benefit from high-quality, direct investment opportunities as well as access to a diversified digital asset fund. Investors will also have access to our research and education capabilities, which will help them enter and navigate the emerging digital asset ecosystem.”
Josh Hurwitz, ExC&M Co-founder, President & COO further added, “The fractionalization and digitization of global assets is an enormous global opportunity with the potential to unlock tremendous amounts of value for founders and investors alike. At ExC&M, we are deeply committed to bringing our knowledge and resources to bear as we advise and assist clients in issuing and trading digital assets, while simultaneously architecting a pathway to global liquidity.”
To learn more about about ExC&M and the various services it provides to ventures and investors, please connect with us: