Globacap, the automated end-to-end solution for raising and managing private capital, has today finalised its ecosystem with the launch of Globacap Liquidity, offering companies the ability to take back control of their liquidity events.
Since becoming the first company to ever issue digitised shares in 2018, Globacap has now realised its ambition to completely overhaul the processes behind the creation, management and now transferability of private securities. By using the blockchain powered platform, private companies are now able to digitise their shares and access liquidity whilst still staying in control of their share price and investor-pool.
Public markets used to be the only way to facilitate truly efficient secondary liquidity. With Globacap’s fully automated settlement technology, secondary transactions in private securities are now finally as seamless as those in the public markets.
Until now, most private share exchanges have simply acted as meeting places for investors, leaving both parties to reach a bilateral settlement once the introduction is made. Globacap overhauls this by digitising the share asset and enabling a fully automated process that supports both parties through the full settlement.
This product resolves the two key impediments faced by private companies and investors using legacy platforms: direct transactions requiring a lengthy KYC process, and investment funds needing to be held by a third party. With Globacap, investors will face the company rather than each other with KYC being handled automatically and anonymously between the two parties.
Globacap research has found that for over a third (41%) of mid-large companies, one of the biggest motivators to IPO is to realise some liquidity by selling some of their shareholding. However, 88% would still like to keep the business private for as long as possible and hold off on an IPO or private equity buyout.
The new liquidity feature offers private companies the ability to create controlled liquidity events, choosing their share price, event timing and investor pool. This enables true liquidity events that mean companies won’t have to compromise their control in order to be rewarded for all of their hard work.
Myles Milston, CEO at Globacap, said: “At Globacap our mission has always been to overhaul the archaic processes behind the private capital markets. We started by offering private placement and share issuance, then share registry management and finally our Liquidity product enables automated secondary transactions, making transacting in private securities as seamless as public markets.
“As the first company to ever digitise our own shares, we have experienced the benefits of being able to easily access liquidity while remaining in control. By launching the Liquidity feature we have completed the full Globacap end-to-end ecosystem, and enabled other companies to digitise their shares and realise the same benefits.
“Our customers tell us that they value the ability to retain control, but that often means turning down a route to large-scale funding. At the same time, existing liquidity options can leave them with less control over their own organisations and the valuation is in the hands of investors.
“By overhauling the legacy private equity exchange landscape, our product represents a new and improved route to liquidity for private businesses and investors alike. It’s the first step towards our ultimate vision of a tokenized securities landscape.”
Companies using Globacap for liquidity will have a deal page on the platform detailing their share classes and liquidation preferences. Investors can place an order here and companies can benefit from tools to match them with investors, either via algorithms or their own manual selection criteria.
For more information visit: www.globacap.com