- February 23, 2021
- Posted by: EBAN Team
- Category: News
Bambucorn is a regulated equity crowdfunding marketplace for investments in private securities enabling early-stage ventures raise equity financing by issuing tokenized securities through the platform.
The reason for Bambucon’s creation originates from the problems the founders identified in their capacity as angel investors. Having interviewed over 150 entrepreneurs globally, the founders figured that the approach used by entrepreneurs to raise pre-seed funding tends to be random, subjecting them to significant uncertainty due to the time it takes to raise funds. The problem gets exacerbated when entrepreneurs have to deal with other operational challenges in getting their businesses off the ground.
On the other hand, investors do not generally have access to quality deals in private equity as historically this asset class has been the privilege of only professional investors, institutional investors and venture capitalists. Whilst, in the recent past, with significant crowdfunding activity, the problem is being solved partially, investors still do not have a well-defined methodology to evaluate private equity opportunities to aid in their decision making.
This deters most investors from actively getting involved in the early-stage investment space, which does not particularly help ambitious entrepreneurs with highly innovative ideas. Furthermore, the thought of a long holding period further acts as an impediment to investors’ decision making. Bambucorn addresses some of the above problems by providing, inter alia, the following key features in the platform:
- Ability to tokenize securities using a blockchain infrastructure, that will set a strong basis for the tokens to be tradeable seamlessly in the secondary markets, potentially addressing the problem of a long investment holding period
- Ability for investors to access experts within the platform and seek professional views from them prior to making an informed decision on their investments
Alternative finance (crowdfunding, P2P / marketplace lending or related capital raising activities) is gaining momentum on a global scale with over $89 billion (ex-China) in volume (Source: Cambridge Centre for Alternative Finance: April 2020). Bambucorn’s vision is to be a catalyst to encourage effective cross pollination (i.e., allowing investors to access private equity deals in other geographies with legal structures that they are comfortable with, and vice versa). Whilst Bambucorn has been founded with a global perspective in mind, it is currently regulated in the Middle East, having obtained an Innovation Testing Licence from the Dubai Financial Services Authority as well as an authorization from the Central Bank of Bahrain for participation in the Fintech Regulatory Sandbox to operate a securities tokenization platform.
Pre-register on the Bambucorn website to join a strong community of investors, issuers, and experts!