Investx, a blockchain-based SME funding platform, has opened its Initial Coin Offering (ICO) pre-sale. The ICO will follow ‘ethical ICO’ principles, in order to reduce risk for potential investors and maximise long-term token value.
SMEs are considered the powerhouse of economies, but due to difficulties in obtaining new capital, the growth of these established businesses is often constrained. Most SMEs don’t want to take on significant amounts of unsecured debt, and equity alternatives such as a public share listing is expensive and onerous.
For potential investors, outside of venture capital and private equity funds, it’s difficult to make an equity investment in companies that are not publicly listed, and if investment is made through funds, that money is usually locked up for years.
Investx’s INX token will fuel the solution to this problem, a blockchain-powered platform to allow established SMEs to raise funds based on selling equity in their businesses. A secondary market will provide liquidity in a traditionally illiquid market, thus opening up an entirely new asset class for investment.
Peter Edgar, Investx CEO and co-founder, says: “Investx as a business has been supporting SMEs to raise capital for many years. Our ethical ICO is the next step in opening up this opportunity to the whole investment community. The INX token will form the basis of the Investx platform, helping to fix the broken SME funding system thanks to a pioneering application of blockchain technology.”
Richard Chambers, a former Royal Bank of Scotland director and Investx COO, adds: “Our ICO will allow us to provide equity investment for smaller businesses to ensure they can grow and thrive. Investx fills a clear gap in the market for established SMEs to obtain the funding they need.”
