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Interviews

Zoe Adamovicz, CEO & Cofounder of Neufund – Interview Series

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Zoe Adamovicz, CEO & Cofounder of Neufund - Interview Series

Zoe Adamovicz is the CEO and co-founder at Neufund. She is an experienced entrepreneur and occasional angel investor.

Zoe is passionate about building technology businesses that are impactful, positive and at the same time profitable and powerful. Prior to Neufund, she founded Xyo, a company that re-imagines how people discover apps, Priori Data (app store intelligence), and Concise Software which provides software development and engineering services.

 

RS: Neufund has been described as a “stock exchange without the operator in the back”.  What kind of similarities and dissimilarities has Neufund to a traditional stock exchange?

ZA: On one hand, Neufund provides companies with a technical ecosystem that allows them to tokenize their equity, and on the other hand it serves as a primary market for securities offerings, making it easy for companies to conduct a quasi-IPO on Blockchain. The latter may remind investors of the typical role of a stock exchange. However, secondary trading of such tokenized securities is happening outside of the Neufund platform. Equity which is tokenized through our protocol is ERC20 compliant, meaning that on a technical level it is possible to trade the tokens on any crypto exchange.

 

RS: What is the advantage of conducting a quasi-IPO on Blockchain over going public on a typical stock exchange?

ZA: Conducting an STO is much more accessible to companies than going public on a traditional stock exchange. You can conduct a public offering on Blockchain at almost no cost and at any stage of growth. It is interesting to observe, which gap in the existing fundraising market STOs will fill. We think it is a natural fit for a pre-IPO stage, when a company is too big for a typical VC round, and too small to file for an IPO.

Going public on Blockchain carries different benefits both pre- and post-offering. Companies no longer need to involve multiple middleman on the various stages of their offering, their cap table is updated in real time and investor can now manage their assets with greater flexibility. Also worth noting is the programmability of tokenized assets, which means that issuers can include utility functions in the asset itself such as automated dividend distribution. At the same time, making a public offering on Blockchain includes all typical advantages of going public, as well as the ability to conduct secondary offerings easily.

 

RS: What types of investors do you think will be attracted to Neufund’s ecosystem?

ZA: During our recent and also first Security Token Offering we have attracted a very diverse group of investors, which includes prominent venture capital firms like Atlantic Labs or Freigeist Capital, as well as angel investors, many of whom had no previous experience in this area. We find this especially interesting with the ongoing debate in mind  on how Blockchain will impact the venture capital world. To us, conducting the offering on Blockchain isn’t contrary to typical investment rounds but rather enhances them, bringing much needed liquidity which so far only existed in capital markets.

But that’s not all, we also receive wide interest from many crypto and retail investors. The former see Neufund as a safe way to invest their crypto capital, while the latter appreciate the ease with which they can make their investments and manage assets at a later stage.

 

RS: Why is Neufund a good platform for investors to make their investments?

ZA: Neufund serves as a market with different offerings, coming from different companies and we encourage all of the investors to review each opportunity independently. However, all equity tokens offered through Neufund have similar advantages over paper-based assets that are known from traditional markets.

First, token holders will potentially have, once regulated, access to a global pool of investors across multiple secondary exchanges which potentially increases liquidity. Second, they are programmable assets which makes it possible to embed utility functions such as automated dividend distribution or voting mechanisms. Third, one real world asset can be represented by many tokens which lowers barriers to entry for retail investors.

What makes Neufund stand out from the crowd of primary issuance platforms, many of which were created over the last months, are our unique token economics – for every investment conducted through our platform investors are becoming economical co-owners of the Neufund platform itself, and thus can claim shares in the revenue that we generate. We often compare it to investing through NASDAQ in Facebook, but on top of equity in Facebook investors get a piece of NASDAQ itself.

 

RS: What types of companies are best suited to launch with Neufund?

ZA: We have a lot of companies in our pipeline and many more businesses  which showed their interest in fundraising with us.  Eleven of those were  already publicly announced in 2018. They are at different stages of growth (seed, series A, B, D) and with different products (Banking, IoT, Mobility). What is important is that they don’t have to be necessarily connected with Blockchain.

 

RS: Why should companies launch on Neufund versus other competing platforms?

ZA: First, Neufund stands with the crowd, as we aim to make the offerings accessible to people from across the globe with different financial status, with a  minimum ticket as small as a couple of hundred euros. This makes it possible to address the offering to a global community of investors. Secondly, we provide the companies with full technical and legal support over the course of the preparations for their Security Token Offerings, for instance, we are providing them even with a prospectus template, if needed.

 

RS: Last summer you partnered with MSX (an innovation division of the Malta Stock Exchange), how will this benefit Neufund? And you also announced a  partnership with industry leader Binance last summer, could you tell us more about the Binance partnership and what it entails?

ZA: Both partnerships aim to bring much needed liquidity and create a complete environment for the issuance and, at a later stage, secondary trading of the security tokens issued through Neufund’s set of protocols.

 

RS: What is the biggest challenge that Neufund faces with the launch of your first security token and how do you plan to overcome that?

ZA: We have faced most of the challenges at the pre-offering stage. It included making sure our legal architecture is compliant and technical solutions secure. Now, that the tokens are about to be released, which will happen after the signing period, we focus on building the governance system and the UX around it.

 

RS: Neufund did an ICO in 2017 and raised approximately $15M.  What will happen to the utility tokens when Neufund launches the new equity token?

ZA: During our ICBM (Initial Capital Building Mechanism) we have managed to secure an equivalent of €12.5m. It is important to note, that Neufund had no access to those funds. The committed ETH and EUR got locked on a smart contract and investors will be able to invest them into coming offerings placed through Neufund. In exchange for their early commitment investors have been rewarded with NEU tokens, that represent economical co-ownership in the platform. With those, investors can claim their share in the revenue Neufund makes.

 

RS: You’re based out of Berlin which has a great blockchain community.  Has this community helped foster the development of Neufund?

ZA: Yes, absolutely. Neufund is surrounded with an amazing community here in Berlin which offers access and the support from top minds in Blockchain development. Germany is at an interesting intersection between traditional VC, innovative spirit of startups and a regulatory gateway to the EU.

 

RS: Is there anything else you would like to tell the readers about Neufund? 

ZA: Blockchain is one of the greatest opportunities we’ve been presented with in modern history. Decentralization is ultimately about equalizing opportunities, so a young entrepreneur from the third world  receives the same access as a wealthy investor. Building solutions that perpetuate the mistakes of existing markets solely for the purpose of increasing revenues is not enough. We, as a Blockchain community, can and should do better.

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Rebecca has a keen attention to detail and is an investment analyst and entrepreneur. Some early investments include Spotify and Lyft.

Exchanges

Hirander Misra, Chairman of GMEX Group & Chairman of SECDEX – Interview Series

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Hirander Misra, Chairman of GMEX Group & Chairman of SECDEX - Interview Series

Hirander Misra is the Chairman and CEO of GMEX Group (GMEX), offering innovative solutions for the creation & operation of electronic exchanges and post trade infrastructure in securities, FX, derivatives, commodities, crypto & digital assets.

He is also Chairman of SECDEX, the Seychelles based Securities, Commodities and Derivatives Exchange, which is a full ecosystem for digital and traditional assets enabled by blockchain technology.

Can you start by sharing what GMEX Group is?

GMEX Group (“GMEX”) is a global provider of innovative multi-asset exchange trading and post trade business solutions and technology ecosystems. As a market infrastructure vendor, we focus on technology and interconnectivity. Our solutions address the end to end regulatory and contract environment needs for issuance, trading, clearing and settlement of securities across exchanges, across all asset classes including traditional, alternative and digital assets, digital currencies as well as hybrid digital securitisation of traditional assets including derivatives.

GMEX’s focus is on digitally transforming global financial markets, enabling participants to launch new solutions, expand current operations and scale to meet market demands. We carry this out using two proven engagement mechanisms to enable our clients to use technology to achieve their commercial goals:

  • Market Advancement Programme (MAP), which delivers multi-asset Exchange and Post-trade enablement with an optimal combination of traditional and digital market infrastructure technology and services
  • Partnership-driven Approach, we do not just sell technology, rather we use a combination of FinTech, business and investment solutions empowering partnerships and ventures.

 

What sparked your interest initially in launching GMEX?

When we started out in 2012, the existing market infrastructure vendors were very much of the customer-supplier mindset, providing legacy technology at inflated prices without taking into account the real business and operational needs, including any commercial constraints which may exist. This was our opportunity to differentiate ourselves!

We provide business expertise, the latest technology, connectivity & operational expertise delivered through an aligned partnership driven approach for exchanges, trading venues, clearing houses, depositories, registries and warehouse receipt platforms. In many cases this also allows us to align interests by taking equity in the ventures we are working with, as and where such opportunities make sense.

In 2016 we were able to capitalise on the opportunities that blockchain presented, initially on provenance of commodities and subsequently within capital markets. We were surprised at how most projects just harnessed the technology in the same way that traditional technology was being used and thought, what is the point? That spurred us on to look at ways in which the technology could be leveraged to revolutionise and democratise the way capital markets and marketplaces for other asset classes operated.

 

Can you tell us about GMEX Investments, and what type of investments are made?

The investment focus for GMEX is early stage equity and token strategic investment in market infrastructure and related FinTech companies, which are synergistic with what GMEX does in terms of servicing and product capabilities. In addition, we also venture build our own initiatives.

Given the interesting pre Series-A FinTech opportunities we are coming across, we have also launched Digital Investment Fund PCC (“DIF”) in the Seychelles, which is the is the world’s first fully regulated tokenised hybrid fund. We have an interest in companies, which have genuine intellectual property in the blockchain and artificial Intelligence (“AI”) space within financial services, combined with early client traction.

 

Can you elaborate on the digital exchange trading and post trade technology offered by GMEX Technologies?

GMEX offers the first truly hybrid exchange and post trade ecosystem, Fusion, bridging the gap between traditional and digital assets underpinned by regulatory frameworks. This is quite analogous to interconnected telecommunications networks. We ensure our solutions are aligned with the business objectives of our clients and partners.  GMEX Fusion is a hybrid centralised & blockchain distributed ledger technology suite and middleware, which is deployed and trusted by multiple international regulated financial institutions around the globe. The suite includes:

  • ForumPortal, a tokenisation, registration and issuance platform;
  • Forum Trader, a secondary trading front-end and order management system;
  • ForumMatch, a high-performance exchange trading platform with integral matching engine;
  • ForumDetect, a market surveillance system;
  • ForumIndex, an index calculation and dissemination system;
  • ForumCustody, a digital custody platform for clearing and settlement;
  • ForumWallet, a wallet management platform, which can also interface with third party wallets;
  • ForumCCP, a clearing platform facilitating credit checking, position keep and margining;
  • ForumCSD, a central securities depository and registry platform facilitating settlement;
  • ForumPay, a simple and secure platform for making international payments, money transfer, withdrawals and deposits across multiple financial instruments.

 

Why are cryptocurrency exchanges attracted to using GMEX?

Cryptocurrency and digital assets exchanges are attracted to using GMEX because they appreciate we have genuine proven solutions and a practical understanding of digital assets as opposed to the hype and vapourware that some are touting out in the market.

They like the fact that the technology stack is designed for the needs and quirks of cryptocurrency and digital asset markets, which can include 24 hour trading, 18 decimal places due to fractional ownership, high volume requirements and the need to offer tokenisation and digital custody services beyond just exchange solutions.

Importantly, as markets in this space become increasingly regulated, GMEX is able to support our clients with our regulatory and business expertise in operating markets across the globe, which is highly valued.

 

How scalable is GMEX technology?

Cryptocurrency and other types of digital asset exchanges are facing a very serious challenge with the increasing volumes of orders they need to cope with. Investors and speculators expect their orders to be executed within a few milliseconds especially in hectic market conditions i.e. when volumes are at their highest peak. Any slowness in order execution will cause loss of confidence and order flows to switch to other venues. Exchanges must ensure their technology can stay ahead of the fierce competition. Recent volatile cryptocurrency market conditions were a performance wake-up call for cryptocurrency exchanges.

Our technology stack is modular and component based and is designed to flexibly support multiple assets and numerous private and public blockchains. It also has the ability to easily interconnect many nodes, whether they are running our technology or are third party platforms. Our low-latency and high-throughput exchange solutions combined with high availability ensure successful operation in critical market infrastructure environments. Superior performance is also achieved by way of a low hardware footprint. We also include appropriate open source components to remove third party licence fees. The technology stack scales through use of virtualisation and cloud services, as an alternative to local deployment, where there is a need for a turnkey Software-as-a-Service (“SaaS”) model to be offered as an option.

 

You are also Chairman of the SECDEX, the Seychelles based Securities, Commodities and Derivatives Exchange. Could you tell us about the SECDEX and why it matters?

The SECDEX Group business consists of a regulated:

  • Exchange;
  • Central counterparty clearing house (CCP);
  • Central securities depository with registry;
  • Digital marketplace; and
  • Digital custodian.

SECDEX is unique as it is the first fully-regulated, multi-asset, hybrid market infrastructure ecosystem combining the benefits of a digital exchange with those of a traditional exchange to deliver seamless trading, clearing and settlement. It is based on the strengths of GMEX Group as a founding shareholder combined with the professional services of Digital Partners Network (DPN) as a co-founding shareholder. DPN services include specialist legal, finance, compliance, corporate structuring, finance, strategic consulting, technology-enabled digital transformation and potential investment through a digital fund.

This is game changing, as until now there have been too many intermediaries for these different services, and they have not been offered cost-effectively under a single umbrella. This means that in addition to the listing of traditional securities and derivatives, Security Token Offerings (STOs) can be undertaken in a regulated, trusted environment with issuance, full professional services support for the tokenisation process covering legal and valuations in addition to capital raising, with listing and secondary trading on the SECDEX Exchange.

 

It was also recently announced that the SECDEX group has welcomed a new addition to their ranks – SECDEX Digital Custodian (SDC). Could you tell us about this digital custodian solution?

SECDEX Digital Custodian Limited (SDC) is a regulated digital custodian offering cold storage and custodial services for cryptocurrencies, security tokens and other digital assets. SDC caters to retail, high net worth (HNW) and institutional users including exchanges, marketplaces, brokers, banks, payment service providers and traditional custodians.

SDC services include:

  • Safeguarding of digital assets
  • Transaction recording and reporting for its users
  • Automated transfers, balance confirmations and account related requests
  • Escrow services
  • A multi-signature authorisation protocol to ensure that no single party is able to initiate and complete a transaction within its custody. Furthermore, under its technological platform operated by the venue, each key is held with segregated accounts.

SDC, in a short space of time, has already attracted USD 544,718,948 of assets which it has tokenised with immutability and transparency on the Ethereum blockchain.

 

One of your other projects is promoting Blockchain solutions to drive financial inclusion across Africa. Could you share some of your views regarding this?

There are an estimated 700 million unbanked farmers in sub-Saharan Africa and every country has its own structures and complexities. At the heart of the problem is the lack of price transparency for farmers for their produce. Better prices would mean improved income, allowing them to better afford seeds, pesticides, fertilisers and even opening up credit.

FinComEco, the financial and commodities ecosystem, links agriculture to the latest financial technology down to the individual smallholder farmer level and beyond from origination to destination. This is achieved via a model which is adaptable to local requirements with an underlying ecosystem of technology, finance, exchanges, logistics, sourcing and supply chain infrastructure. Its aims are to:

  • Facilitate financial inclusion with social impact for smallholder farmers;
  • Bank the unbanked through facilitation of finance;
  • Facilitate cheaper inputs and access to warehouses; and
  • Provide commercial farmers better access to markets.

 

Is there anything else that you would like to share regarding either GMEX or SECDEX?

GMEX has collected feedback about digital asset deployments from securities exchanges who are

  • Conscious of the importance to offer digital assets for trading
  • Concerned by new technology investments
  • Uneasy with the Blockchain/DLT technology due to a few scandals and scams
  • Reluctant because of unknown legal and administrative implications

GMEX, DPN and SECDEX have responded by combining their strengths in a single value proposition with a multitude of technology, regulatory and services options to enhance the knowledge and associated business opportunities available to traditional securities exchanges.

With a growing number of jurisdictions recognising security token equivalence to traditional securities, it is now evident that exchange operators should embrace the transition to digital or, more appropriately, a hybrid integrated approach. Traditional exchanges, whether incumbent or challenger, are now acting under similar regulatory frameworks and are on the same level playing field with regard to digital assets. Early movers are taking advantage of this new territory. However, given the pace of change and anticipated exponential growth of the digital economy, firms should see this as a catalyst to re-engineer their objectives, processes, and strategies rather than just replace like for like. It is vital to act now to leverage this opportunity and to be part of the paradigm shift into this new era of digital exchanges and post trade, which ultimately can benefit investors, SMEs and the wider capital markets.

Thank you for the great interview answers. Readers who wish to learn more should visit:

GMEX Group (GMEX), offering innovative solutions for the creation & operation of electronic exchanges and post trade infrastructure in securities, FX, derivatives, commodities, crypto & digital tokenised assets.

SECDEX, the Seychelles based Securities, Commodities and Derivatives Exchange, which is a full ecosystem for digital and traditional assets enabled by blockchain technology.

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Crowdfunding

Andrew Adcock, CEO of Crowd for Angels – Interview Series

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Andrew Adcock, CEO of Crowd for Angels - Interview Series

Andrew is the Chief Executive Officer at Crowd for Angels an equity crowdfunding platform. He often attends and speaks at events on Crowdfunding, Alternative Finance and Investment. Previously, he worked at NinetyTen, a web application developer and provider of Private Social Networks, whose clients included Nokia, Channel 4 and Shop Direct

You were one of the original Co-Founders of Crowd for Angels. Can you discuss the inspiration behind launching this business?

I was indeed one of the Founding team at Crowd for Angels, but the inspiration for launching the company comes from our Director Tony de Nazareth, who combined his decades of financial knowledge with the ‘social media’ approach. This was to get the community involved when funding and supporting a business, thereby creating brand advocates that not only financially supported the aspirations of a company but also became a voice and customer of the company.

How much do you involve yourself in the pitch decks and packaging the deals that are found on Crowd for Angels?

I am involved in most companies that seek to list on Crowd for Angels. I take a genuine fascination in the lives of start-ups and companies looking to expand. Each has its own story and passion, which I am enthused by. Having raised funds for my own company and invested in many others, I hope to provide insight for the company.

What type of due diligence is performed on the companies that are listed?

A lot! Crowd for Angels breaks due diligence down into 3 key areas, firstly, we conduct factual checks such as KYC, AML, PEP, Credit Checks on the directors, reviewing accounts produced by the company and verifying facts stated on their pitch. Secondly, we conduct market checks, for instance, is the product available and as described, is there an addressable market, is the valuation reasonable, what legal challenges the company might face and is it ethical. The final check is one of sanity, which is not only tested by Crowd for Angels, but also by our Angels, who will ask the company their own questions.

What are some of the main reasons behind companies being turned down for listing on the platform?

There can be a number of reasons but a few we find most common are as follows:

  • The valuation is simply too high in comparison to the companies position
  • The company does not provide documentation (business plan, management accounts, incorporation documents)
  • The product is too early-stage or not yet developed
  • The directors have no ‘Skin in the Game’

What are the biggest benefits of equity crowdfunding?

I personally believe the biggest benefit is the ability to create brand advocates, people who support your business financially and become active customers, drawing in others to check out your brand, whether that is through word of mouth or social media.

Could you give us a success story of a company that raised funds on the Crowd for Angels platform?

One of my favourites is a company called CNPPS. A young entrepreneur, who was studying engineering at university at the time had created a permeable pavement solution that used recycled aggregate. Now that might not sound as fascinating as an app, but our world is covered in roads and pavements. His solution, used 100% recycled aggregate and was carbon negative, furthermore, it allowed water to pass through. Working with the entrepreneur we were able to raise £100,000 for a phase of testing that has now led on to a commercial contract and further funding for the company.

What made it interesting was the ethical approach the company had took to change an old industry, the tenacity the entrepreneur showed never giving up and that a business can truly be grown from the ground up, out of university none-the-less. So far in a 2 year period, the company’s valuation has increased 4 fold, delivering a solid return for the Angels involved.

Crowd for Angels is one of the few crowdfunding platforms that accept bitcoin. How many investors use bitcoin, and where do most of these investors originate from?

Yes, we have been accepting cryptocurrency as a form of payment for investment since early 2016. At that time, we integrated this payment option to allow foreign investors to invest in UK companies without the costs and time associated with international bank transfers. Initially, we saw a number of Australians, Chinese and mainly Asian investors utilise this form of payment. However, as bitcoin and other cryptocurrencies gained in popularity, we did see growth in European investors utilising cryptocurrency. Partly this is due to the gains they might have experienced and I believe the convenience cryptos offered. Now, we have over 14,000 members registered with a cryptocurrency wallet on our platform, with many of them in Europe.

A few years ago, the ANGEL token was released. What are the use cases for this token?

The ANGEL token was released to drive down the user acquisition cost of investors whilst rewarding stakeholders for interacting with our platform. It is hoped that when users interact and share content in the network, say an investment they had just made in a fledgeling company, that they would be rewarded with ANGEL. Crowd for Angels has then committed to buy back and burn ANGEL linked to the revenue generated from our pitches, thus creating a virtuous circle. We hope in the future, our Angels will also be able to use the ANGEL token as a method of payment towards an investment.

How do you see digital assets and digital securities eventually merging with crowdfunding?

Crowdfunding utilises technology to allow the masses to invest small amounts into pitches, but the shares are usually held with a nominee and should you wish to sell them or give them to someone else, it is difficult. Therefore, the integration of digitalised assets should be a no brainer, because it potentially gives the control of the asset back to the investor and follows a set of rules, that can’t be broken. In a utopian world, you would allow investors to purchase, hold and trade any assets that they wish. With the blockchain, you benefit from an immutable ledger that would record these transactions, giving you efficiency and transparency. I believe we are only a stones throw away from some big changes.

Is there anything else that you would like to share about Crowd for Angels?

We are always open to ideas, a conversation can go a long way.

Thank you for the interview. Readers who wish to learn more may visit our Crowd for Angels business listing or the Crowd for Angels website.

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Interviews

Jim Dowd, Founder & Managing Director of North Capital – Interview Series

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Jim Dowd, Founder & Managing Director of North Capital - Interview Series

James Dowd is Founder and CEO of North Capital Private Securities (NCPS), a registered broker-dealer focused on origination, placement, and clearing of exempt securities; North Capital Investment Technology (NCIT), which provides technology for the exempt securities market; and North Capital Inc., a registered investment advisor. NCPS is the designated broker-dealer for many securities funding platforms in the early stage equity, real estate, private funds, and securities token markets.

North Capital recently completed the membership approval process with FINRA and achieved acceptance of Form ATS Initial Operations Report by the SEC. For those who are unfamiliar with this form, what makes it so important for North Capital and its clients?

Great question.  Our customers and many other issuers, investors and intermediaries who are involved in private securities markets want to see more transparency and liquidity in private markets.  Investing in  private deals has traditionally involved a minimum 7 to 10 year capital commitment, since there is typically no interim liquidity and no definitive exit plan.  I have one private investment that has been outstanding for 19 years, another that has been alive for 14 years, not to mention the many investments that did not work out.  Once someone makes a private investment, if they have second thoughts or change their opinion, it’s too late.  Almost every investor who allocates to private deals knows or should know this, and most would like to have liquidity and real price discovery for the private securities in their portfolios.  We hope our ATS will help to realize this vision, at least for the issuers, investors and intermediaries who share it.

 

The launch of this ATS serves as a natural extension to North Capital’s existing private securities infrastructure, TransactCloud. What is TransactCloud?

TransactCloud is our API-first technology stack that facilitates primary offerings of exempt securities.  We work with issuers and professional intermediaries — broker-dealers, RIAs, and funding platforms — to allow the offering, transaction, document processing, escrow, payments and clearing of exempt securities online.

 

Can you clarify North Digital’s stance on digital assets such as bitcoin, or in digital securities such as security tokens?

To be clear on this point, we ourselves are not investing in digital assets;  we are providing infrastructure to allow trading of digital asset securities through our regulated marketplace, the PPEX ATS.  We will not be trading cryptocurrency or utility tokens.  The SEC regulations related to alternative trading systems are very clear:  ATSs are for the trading of securities only.  We also will be listing and trading non-digital exempt securities.

 

North Capital also offers investment opportunities which are deemed as “frontier alternatives”. Could you share some details on what you would consider frontier alternatives?

“Frontier” in the context of investment management refers to the most emerging of emerging markets.   We coined the term “frontier alternative” to convey the same idea ~ some examples would be investments in art, collectibles, fine wine, litigation pools, digital currency, race horses, athletes, etc.   I fully expect that in ten years, some of these will have become mainstream alternatives.  Private credit is a good example ~ ten years ago, private credit was considered exotic;  today there are registered funds that invest in private credit and it’s considered a mainstream alternative asset class.

 

North Capital has been involved in over 1,000 primary offerings totaling $1.9 billion. What are some of these notable offerings?

It’s difficult to single out specific deals.  We have so many great partners who are doing innovative work.  Groups like Jamestown, Crowdstreet, RealtyMogul, RichUncles, Securitize, SportBLX, Exponential, Roofstock, Mythic Markets, Otis, Commonwealth, SeedInvest.  Quadrant Biosciences has a Reg A+ offering that we’re working on right now ~ our first collaboration with WeFunder.  Metaurus is one of our partners, run by a talented team led by Rick Sandulli and Jamie Greenwald, who I worked with 30 years ago at Bankers Trust.  They have two listed ETF-style products that are patent-protected and could revolutionize the way equity investors take risk.  I know I am leaving somebody out so I’ll apologize in advance.

 

Could you share some of the Broker/Dealer services that are offered by your firm?

We are a full-service broker-dealer for private and other exempt offerings, along with investment companies such as mutual funds and ETFs.  We also are an escrow agent for private offerings including serving as a qualified third party for Reg CF offerings.  Compliance support is integral to all of our activities — we help issuers and platforms to comply with securities laws.  Last year we were approved to broker EB5 deals, but that market is shuttered for now, given the COVID-19 pandemic.

 

What type of custody services are offered?

Today we custody cash, private securities, and mutual fund shares.  It’s still early days for our custody business, and we have deliberately limited our rollout to allow us to test systems and procedures.  But this is a high growth segment of our business.

 

Could you also share some details regarding the advisory services that are offered?

The advisory part of our business is done through a separate, SEC-registered investment advisor.  It’s a technology-enabled financial planning and wealth management business, along with a bespoke, consultative advisory practice for family offices and business owners.

 

The firm also offers technology-based investment solutions to broker-dealers, banks, fund managers, funding platforms, and private issuers. What are some of these solutions?

On the advisory side, the evisor platform is an online financial planning and wealth management platform.  We’re currently working with one bank on a pilot program, and we’re integrating it into our broader advisory and 401k business.  On the exempt offerings / broker-dealer side of our business, TransactCloud is a collection of products and services used by issuers and professional intermediaries for online securities offerings.

Thank you for taking the time to answer our questions. Readers who wish to learn more should visit of North Capital Private Securities.

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