“ICO In A Box” – Meet Securitize, A Coin-Creation Service Launched By A Venture Capital Firmbr>
A venture capital firm with an initial coin offering? That’s what SPiCE, a VC devoted to initial coin offering (ICO) infrastructure, plans to do with Securitize, a new secuirty token-creation platform. The new company already has $500 million in ICOs lined up as customers when it launches.
Securitize is a turnkey, customizable service that automates compliance with Regulation A, D, CF in the US and other regulations globally. The platform claims it enables the tokenization of assets to make tokens tradable and increase their liquidity, as well as to achieve greater scalability of the offering and the opportunity for more investors to invest in them within regulations.
“It’s inevitable that security tokens will transform equity, just as bitcoin has transformed currency, because they afford the owner a direct, liquid economic interest and the expedited delivery of proceeds,” said Carlos Domingo, co-founder and managing partner of SPiCE VC and co-founder and chairman of Securitize. “Every type of ownership can be tokenized, which is a massive multi-trillion dollar addressable market.”
The Securitize platform services include custom branded website, with a dashboard that serves as the hub for each investor, with a blog and an “about us” section that has background on all the key players. Securitize tracks website metrics (traffic, mailing list success rate, number of investors and their status, total funds raised, etc.) to ensure that everyone is fully informed.
It also handles management of the back end, enabling a company’s team (or Securitize on their behalf) to manage the ICO process and country-specific legal documents, as well as to manage incoming investors and walk them through the entire process. This includes KYC/AML approvals; creation of third-party crypto wallets; investor accreditation; ICO documentation; a decentralized liquidity option based on the Bancor Network (ensures increased liquidity from day one); a hub for email notifications and mailings to share news and manage investor activity after the token sale; token issuance and access to smart contracts and legal IP on how to treat security tokens by jurisdiction; access to a document management system and much more.
Carlos Domingo talked with Block Tribune about the venture.
BLOCK TRIBUNE: Why did a VC company create an ICO platform?
CARLOS DOMINGO: We initially built this for ourselves, SPiCE VC. We are a tokenized VC that provides liquidity to LPs. Once we started the project we could not find anyone who could actually do that for us. Since we are tech entrepreneurs, we went ahead and built our own platform. We had so many people who wanted to use our platform, that we decided to build it out as a separate business.
BLOCK TRIBUNE: What does someone need to get started?
CARLOS DOMINGO: We sign a term sheet with an agreement for the project and then we move into execution, set up a personalized platform for them, understand their regulatory constraints so we can code this into the platform, and then we can go live with their ICO.
BLOCK TRIBUNE: Turnaround time?
CARLOS DOMINGO: If they have the necessary material, we can do it in one month.
BLOCK TRIBUNE: What happens after they get the token?
CARLOS DOMINGO: They either hold onto it to get all the economic interest in the project or they eventually sell it to the secondary market.
BLOCK TRIBUNE: Who is your target customer?
CARLOS DOMINGO: Ideally credible startups or established customers that can issue a security token and do a successful token sale.
BLOCK TRIBUNE: This is security tokens only, not utility tokens?
CARLOS DOMINGO: We do not do utility tokens, just security tokens. We will set up a decentralized exchange for each token using Bancor and help them list on the emerging secondary market for security tokens.
BLOCK TRIBUNE: Should everyone have a token?
CARLOS DOMINGO: No, they should not, unless they issue a security token, which is something anyone can do because it represents an economic interest on the business. Utility tokens have very limited applicability.
BLOCK TRIBUNE: What’s the response to this concept so far?
CARLOS DOMINGO: Overwhelming! We cannot cope with the amount of requests we have. We launched with a number of clients including 22X Fund (500 Startups), CryptoOracle, Kairos.com and Lottery.com to name a few, with more than $500 million in ICOs on the platform day one.
BLOCK TRIBUNE: What are your ICO details?