Exempt Market Update 2019
The exempt market in Canada is going through some major developments that will fundamentally change how the private market will be seen by investors.
Digital Securities provide companies, who are raising capital, the opportunity to offer their investors another potential exit that until now was only seen as a pipe dream.
It’s no longer a dream, it’s in fact reality. Digital Securities are a direct representation of the securities a company offers to investors, but instead of a piece of paper, it’s put on a technology that is immutable.
Companies around the world are raising capital offering investors Digital Securities, which would allow them to have secondary market trading.
ATS (Alternative Trading Systems) have been around for decades around the globe, in most cases unused due to inefficiencies and high costs.
With over 16 ATS now launching in the USA and more coming in Europe and ASIA we will see more ATS secondary markets for private shares than public stock exchanges in the next 24. The reason is very simple. There is more private companies than public listed.
450 Million private companies vs 85,000 public listed companies worldwide.
$2.4 trillion raised by U.S private companies vs. $2.1 trillion by public companies, a gap that has been widening for 6 years. With the decline in the number of public companies and the rise of private financing will drive a need for efficient secondary market trading of private shares. A blockchain enabled and global compliant digital security is critical to the success of secondary markets for private shares.
On 29 May 2019, OMEGA has filed an application with the regulators to launch a Digital Securities ATS. This announcement shows you how the market is evolving to provide further liquidity in the private capital markets. This will not be the first ATS in Canada.
KoreConX is leading the market by providing the tools for Exempt Market Dealers to put their business online, in a secure and compliant manner, to be connected in the private capital markets ecosystem.
The KoreConX all-in-one platform, powered by IBM’s Hyperledger Fabric, is the key infrastructure that, until now, was missing from the private capital markets. Our globally compliant digital securities protocol is the key to creating efficient securities management throughout their lifecycle.
KoreConX Revolutionizing Private Capital Markets
Jofre is one of the top 10 global thought leaders in Equity Crowdfunding, a Top 10 Fintech & Blockchain Influencer and a Top 50 InsureTech Influencer. Prior to co-founding KoreConX, Jofre founded SaaS-based, multilingual translation portal, BabelFish Corp. where he led a team of more than 135 individuals to provide multilingual solutions to 7,600 contractors around the world. He was awarded the Vision 2012 Businessman of the Year by the Toronto Hispanic Chamber of Commerce and is a globally sought after speaker on the topics including equity crowdfunding, blockchain, FinTech, compliance, shareholder management, alternative finance and RegTech.