Problems Investx Solves
Access to new asset class
Problem: Investments into SME’s are difficult to access outside of angel investor networks, venture capital or private equity firms.
Solution: We are opening up a currently inaccessible asset class at discounted costs.
Liquidity for illiquid investments
Problem:There is no open secondary market, making selling SME shares complex and expensive and often impossible until the business is sold
Solution: Our blockchain powered secondary share market will provide liquidity to an illiquid market.
Established, stable businesses
Problem: Crowdfunding platforms only focus on riskier start-ups and early-stage businesses.
Solution: Our focus on stable, growing businesses means greater opportunities for immediate and stable long-term returns.
Cost effective crowdfunding
Problem: Crowdfunding platforms are expensive (7% plus payment processing fees) and have a limited investor base.
Solution: Investx-issued security tokens for every fundraise make transacting deals fast and cost efficient meaning lower fees for businesses and investors.
Extensive product range
Problem: Crowdfunding platforms offer only minority interests and a limited range of deal types.
Solution: Investx will transact a wide range of deals from minority growth capital to full shareholder exists.
Simplified value chain
Problem: Accurately valuing and selling shares in SME’s is complex and expensive, requiring corporate financiers, accountants and lawyers.
Solution: Our successful track record in the SME market, our use of smart contracts and our easy to use platform will attract SME’s and global investors.
The Investx Solution
Powered by INX
Investx Tokens (INX) are a reserve backed cryptocurrency used for investing in SME businesses. Using INX to pay for shares reduces transaction & legal costs while making available attractive investment opportunities currently inaccessible to most investors.
INX offers a complete investment cycle within the blockchain
The Investx platform allows crypto investors and holders to purchase shares in stable businesses, be paid any dividends and sell their shares all without using fiat on- or off-ramps.
Stable Token Value with Upwards Pressure
Value-stable does not mean static - it means less volatile. Every deal transacted on the Investx platform can have a positive effect on the value of INX tokens whilst retaining real-world purchasing power of INX.
Investx is addressing fundamental gaps in the equity fundraising market by creating crowdfunding products that simply don’t exist. Our products will cut across Equity Capital, Lending and Merger & Acquisition Markets taking a slice out of all of them.
Best of both worlds
Types of Businesses: Funding Circle, the debt crowdfunding platform most closely aligns with the type of businesses we will target. They funded an impressive £1.26bn into businesses in 2017 alone.
Types of Product: Like Crowdcube and Seedrs we will target equity raises, however our product range is much wider and aimed at more mature businesses.
Why Contribute to Investx?
INX tokens are Reserve Backed
INX is a reserve backed means of exchange for shares in SME businesses. INX tokens will be used as payment for shares in businesses on the Investx platform. Our unique mechanism for providing liquidity for reserve backing ensures real-world purchasing power keeps up with token value increase.
Currency Design Innovation
A payment token backed by real assets and reduced transaction costs. Stable but appreciating, the INX ecosystem is designed to expand and contract based on supply and demand.
Share in Investx’s Future
At platform launch 10% of the shares of Investx will be listed on it. Any investors will have the option to invest in Investx, and INX holders can use their INX tokens to obtain to early access.
Regulated in the UK and European Union, targeted Globally: Investx has already engaged with leading financial regulatory experts and legal advisors to ensure that our marketing, platform functionality, internal processes, due diligence processes and credit assessments will be 100% compliant with the necessary regulations.
Founding Team Strength
The Investx team has demonstrable experience in targeting, acquiring, growing and selling both UK and European businesses. Our core team and advisors are listed in the Team section below, containing links to LinkedIn profiles. Investx has closely partnered with bespoke software and platform developers Equal Experts to develop the Investx platform, our smart contracts and the infrastructure to deliver them. We have selected global top 10 law firm CMS Cameron McKenna Olswang Nabarro LLP as our advisors on all legal and financial regulatory work.
The INX token facilitates use of the Investx platform, and by using blockchain technology it offers the following advantages over traditional crowdfunding and investor-to-investor share transfers:
- The use of INX tokens allows our dynamic currency supply model to be implemented - minting and burning with controlled authorisations according to deal funding, dividends and company sale payouts. This ensures reserve backing is maintained.
- Powered by the Ethereum blockchain using security tokens for automated legal contract execution, fundraising, share registry, dividend and exit payments.
- A real-time up to date ledger of every company’s shareholders will be maintained without reliance on manual reporting or trust in central software. This provides an autonomous mechanism to pay dividends and exit profits directly to investors.
- The use of INX tokens allows Investx to transact a high volume of deals with speed and costs traditional crowdfunders cannot achieve.
- Having INX tokens already distributed and marketed creates an engaged global investor pool primed to commit to investment opportunities and long term engagement.
- INX smart contracts facilitate the development of a blockchain-powered secondary market for investors to trade shares with one another.