Konzortia Capital Aiming to Change the Way in Which Capital is Raised by 2021
Throughout the last year, there was a bigger need for businesses and customers to connect without direct physical contact. This has led to the emergence of many new FinTech products and services, as well as a very important degree of growth in the FinTech industry in general. There are thus many reasons to believe that 2021 will be a year in which a lot of the advancements in the field of financial technologies are going to reach their full potential, opening us to the possibility of radically changing the dynamics of the entire financial systema and markets.
Perhaps the most impactful technology will be the one that allows us to introduce new and more efficient ways for businesses to access capital. The endeavor of raising funds can sometimes be extremely complicated for a new business, no matter how perfect or groundbreaking their business model might be. There can be countless barriers and obstacles that the average business owner has to face, from legal, to logistical and even economical, before they can find a like-minded investor with enough financial muscle to make a significant investment on a private placement.
With the creation of new asset classes for businesses to issue their private equities as liquid assets with similar traits to those of stocks, the process of raising capital can become much more streamlined for companies of all sizes. This is what we want to achieve with Konzortia Capital, through three groundbreaking platforms that will work with each other to create a fully-fledged technological financial ecosystem in which entrepreneurs and investors from all around the world can easily connect, without barriers.
Most companies today rase capital from accredited investors through their first funding stages. Then, they have to make a few legal steps to get into an initial public offering or IPO, to list their equities in a stock exchange. This sounds somewhat simple on paper, but it is not just a time consuming but also a highly costly process, that creates barriers so steep for starting companies that the often chose to remain private rather than going into public markets. This reduces the exit options for investors and effectively increases the risk of investing in a private placement, while at the same time closes the access for smaller investors to the best early-stage investment opportunities.
It is possible to automatize the most complex processes of private equity investments, such as payment processing, verifications, contract creation and so on, and that’s exactly what Konzortia Capital intends to do, making them more secure and efficient. This will be done through a threefold business model that employs, on one hand a fully-fledged online banking platform called SBank, which offers ability for users to make instant global transfers. On the other hand, through a fully global private equity platform called InvestHub, which connects entrepreneurs and potential investors all around the world, regardless of their location or jurisdiction. Finally, through Capitalista, companies and investors will have access to a secondarily market based on DLT, that eliminates the necessity for intermediaries, as well as complex IPO processes.
2021 will be the year of FinTech innovation, and from there, a revolution of the financial markets will entail. We’re creating a more inclusive, efficient, competitive and interconnected financial world, and are just a few steps from bringing it to the palm of your hand. This is the world of Konzortia Capital, where the financial markets that everyone takes for granted are being redefined from their foundations.