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Chainium

At Chainium they have a simple mission: to disrupt the global equity market. They stand for any business that wants to raise capital to grow. They stand for any investor who wants to buy shares in businesses they believe in. That’s why they built Chainium. To connect businesses directly to investors, using blockchain. To make buying and selling shares easy. Their platform is already available as a prototype on website. It provides solutions to the problem of raising capital for large enterprises and smaller businesses alike. They offer business owners access to the sophisticated tools and techniques of the listed markets for a fraction of the price. For investors they provide direct access to a huge range of equity offers previously only open to institutional investors, for zero fees. Raising capital through equity in the traditional way is a complicated and costly process. Running an IPO takes months of planning, multiple engagements with advisors, negotiations with banks and law firms to gain regulatory approval, and pitches to attract institutional investors. The process takes a minimum of twelve months, attracts hefty fees, and the end result is uncertain. Their back-to-basics approach to raising capital reduces bureaucracy, whilst their use of blockchain technology removes duplication and eliminates errors. They allow investors and businesses to exchange digital share certificates for fiat or crypto-currency in a transparent, tamper proof and immutable distributed ledger. No intermediary or other reconciliation steps are involved in transactions, cutting through hundreds of legacy systems and solutions from the old world.

The Opportunity

The old-world problems that Chainium solves are:

– Barriers to Capital Raising: Access to capital is traditionally controlled by a small number of powerful intermediaries. SMEs in particular are highly dependent on the liquidity and appetite for risk of their main bank. Many businesses simply don’t get access to the capital they need to grow.

– Barriers to Investing: Access to investments is traditionally controlled by a small number of powerful intermediaries. Retail investors in particular are often excluded from corporate actions and investment opportunities.

– High Costs: Intermediaries charge both investors and business owners excessive fees. Lack of competition, even from new players like equity crowdfunding platforms, keeps fees high.

– Lack of Transparency: Company valuations, especially in private equity and crowdfunding transactions, are highly subjective. The lack of a transparent, liquid market puts sellers and buyers at risk.

– Loss of Control: SMEs raising capital privately often have no choice but to give up far more of their equity than they want to, as venture capitalists and angel investors only invest significant amounts in a small number of companies. Listed companies will usually have a minimum free float set by the regulators.

– Time Wasting: Complex, duplicate legacy bureaucracy makes applications for capital time consuming. Legacy providers such as banks have no reason to provide good customer service, as customers usually have nowhere else to go.

Solution

Chainium is the platform to buy and sell shares – business owners can sell equity in their businesses to raise capital and investors can buy and sell shares from businesses. You can see their prototype on website. Like all good ideas, at its core their platform is really simple. Chainium allows business owners to sell equity in their business in return for capital from investors. They can offer this service free of charge to both business owners and investors because they keep their processes simple and use blockchain technology.

Company Structure

Their company, Chainium AG, is based in Liechtenstein, an ideal location, given the strategic advantages of the country (highly supportive in terms of regulation needs, access to Swiss and EUmarkets) and in close proximity to all modern European markets. They already have hubs in UK and Germany, are in discussions with Hong Kong, and will soon open more hubs in North America and Asia.

 

 

If you want more information, visit the WEBSITE and read the WHITEPAPER.

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