Black Manta Capital Partners introduces into the market the world’s first fully-digital private bond. It is enabled by Globacap through its private placement solution using blockchain technology.
Published on: September 2, 2021
First blockchain-based alternative to private capital markets
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. Globacapoverhauls this by digitising the share asset, enabling a fully automated process that supports all parties through settlement.
This product resolves key impediments faced by private companies and investors using legacy platforms, such as: a lengthy KYC process between parties, agreeing a sale and purchase agreement, and investment funds needing to be held by a third party. With Globacap, these processes, and more, have been automated and standardised. Investors face the company and Globacap rather than each other, with automated KYC and standardised contract terms.
Globacap research has found that for over a third (41%) of mid-large companies, one of the biggest motivators to IPO is to realise 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, maintaining control of 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 bring the archaic processes behind private capital markets into the digital era. We started by offering private placement and securities issuance, then securities registry management, and finally our Liquidity product enables automated secondary transactions, making transacting in private securities as seamless as public markets. This dramatically pushes out the boundary between private and public.
“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, enabling other companies to digitise their shares and debt instruments, and realise the same benefits.
“Our customers tell us that they value the ability to retain control, but that has previously meant 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 with valuation driven by short-term demand. Our Liquidity product instead empowers companies to retain control of their long-term liquidity and valuation.
“Our cutting-edge technology and blockchain-based automation has made the next giant leap in private markets a reality.”
Globacap press team