The Rise of Equity Linked Tokens
Finova Financials
https://www.finovafinancial.com/
The company
Source: https://www.crunchbase.com/organization/finova-financial
“Finova Financial is a socially responsible lender that provides fast affordable loans based on the equity in your car, to the 70 million financially underserved Americans that spend $138 billion in fees and interest annually. Finova’s Car Equity Line of Credit (C-LOC) costs 70% less than the current national average, provides instant access to capital, and a 12-month pathway back to financial health, online, mobile, anywhere, 24/7. Finova clients benefit from the ability to complete the loan process online, instant approval decisions and same day cash funding.[…]. At Finova we are in the business of relationships, not transactions. Our clients tell us Finova is the first positive relationship they have with any financial services provider. This is our passion and what drives us forward.”
Existing investors:
- CoVenture: https://coventure.vc
- Silicon Valley Bank: https://www.svb.com/
In the press: “World’s First Equity Linked Token”
Source:https://www.legalgamblingandthelaw.com/news/finova-plans-jco-worlds-first-equity-linked-token/
“US based Finova Financial, which has made a name for itself as a socially responsible online lender, is raising the standards of ICOs by launching what it calls a JCO (Jobs Crypto Offering), the world’s first equity linked token. JOBS is an acronym for Jumpstart Our Business Startup Act (JOBS Act). It enables entrepreneurs to connect with investors and raise funds by issuing securities.. […] The native crypto currency of Finova’s block chain platform is called as FNVA. The tokens will be linked with a share of equity in Finova Financial. The token is based on the ERC-20 (Ethereum) token standard and will be traded on crypto currency exchanges approved by the SEC. Additionally, it will be backed by assets in a US corporation. Therefore, the JCO can be construed as a hybrid of ICO and IPO.
Similar to the stock of a company, the FNVA tokens will be able to receive dividends. However, transactions are conducted on the block chain and investors an use the FNVA tokens to initiate a transaction. The company has appointed law firm Cooley (https://www.cooley.com) to assist with the legal framework.
The offering is initially open only to a select private investors through a round called SAFT (Simple Agreement for Future Tokens). The private sale of tokens is limited to $50 million, as per regulation. Upon completion of that round, the JCO will be opened to other investors. Before creating the tokens, the company has to register an official public offering with the SEC.
Investors will receive dividends in their digital wallets, upon maturity of tokens. The tokens can be then sold back to the company or traded in the secondary market. Finova will receive investments through Ethereum, Bitcoin, and fiat currency.
Finova plans to sell $18.5 million worth of tokens, between a price band of $0.75 and $1.56. The token price will increase over time.
Neufund
The Company
Source: https://neufund.org/about/
“Using our legal and technical infrastructure, startups and established companies alike can legally issue a new type of asset we call tokenized equity. Such crypto tokens reflect the value of the business operating in the real, off-chain, world and at the same time are as liquid as a currency.
We achieve this by formally linking traditional contracts with Ethereum smart contracts through mutual reference and code correspondence. Blockchain and smart contracts allow Neufund to accelerate the investment process, lower investment barriers, align interests of inventors and investors, and eliminate transaction intermediaries.”
In the press: Berlin start-up raises nearly $12 million to create equity token
Source: Reuters, 7 November 2017
“Berlin-based Neufund said it has raised $10 million euros ($11.6 million) from private investors for its fund-raising platform, one of the first that will allow companies to issue a token or digital currency that will represent equity. In an interview with Reuters on Tuesday, Zoe Adamovicz, Neufund’s co-founder and chief executive officer, said the platform is already set up, and that by the first quarter of 2018 companies will be able to use it to raise funds.”
CapchainX
The company
Source: https://medium.com/@CapchainX/capchainx-crypto-equity-ico-6fb1cbc846dc
“CapchainX is the world’s first Crypto Equity platform allowing companies to create, manage and trade equity on the Ethereum blockchain. CapchainX provides an end-to-end tech ICO solution. It was established in the UK in 2016 by a group of Cambridge University and Stanford University alumni. Today, it is comprised of a multicultural team of forward thinkers in the industry. The company has presence in London, Singapore and San Francisco. It is accepting clients from all over the world. As of November 2017, CapchainX’clients circulated its tokens in the market.
In 2018, CapchainX will help companies accelerate the launch of its token sale through the CapcahinX self-service platform. It will provide easy access to smart contracts the team has built over the past year. This platform will also include an ERC20 compatible wallet. Tokens created on its platform can now be stored, managed, and traded securely and conveniently. In addition, the company plans to roll out a next generation secondary market through a patent pending technology, allowing all Crypto Asset companies to participate in 2019.
In the press: How to Use Cryptocurrencies and Blockchains to Innovate in Your Small Business?
Source: https://smallbiztrends.com/2017/12/blockchain-leads-to-innovation-small-business.html
“The Crypto token market is valuable because it accelerates liquidity in private markets,” writes Beryl Chavez-Li, founder and CEO of CapchainX. She adds that “[t]he solution for a responsible liquid secondary market is issuing tokens backed by real shares — Crypto Equity,” which is the main concept behind CapchainX.
The company will basically replace paper-based legal, regulatory and operational aspects of maintaining a capitalization table, which makes it easier for startups to manage their company’s shares. This can be particularly useful when accepting institutional funding, since share dilution can be complex to compute. According to Chavez-Li, this also opens up the potential for a secondary market, wherein shareholders can use the tokenized system to buy and sell shares, which can help both improve liquidity and bolster market value.”
