DigiShares has added three high-level advisors to its advisory board. These advisors will help develop DigiShares’ strategy towards the future of the tokenized securities industry. DigiShares provides a white-label platform for issuance and post-issuance management of tokenized securities. As such, an STO (Security Token Offering) can be managed with the DigiShares platform.
The three new advisors are:
Andrew Romans: CEO and General Partner of 7BC.VC, a venture capital and hedge fund firm exclusively focused on investing in and supporting blockchain, fintech and AI companies. Andrew is also cofounder and general partner of Rubicon Venture Capital, a very active Silicon Valley and New York City venture capital fund. Andrew advises large corporations and governments on venture capital, cryptocurrency and blockchain policies. Andrew is the author of two books about venture capital and one about blockchain and ICOs.
Andrew will advise DigiShares on the tokenization of VC funds and VC portfolio companies.
Alex Mashinsky: Alex is the CEO and founder of Celsius Network, a blockchain-based borrowing and lending firm. He is a founder of seven startups, raising over $1 billion and exiting over $3 billion. He has been a featured speaker at over 120 conferences and TV interviews, and the author of over 32 patents relating to exchanges, VOIP, messaging and communication. Alex is considered to be one the pioneers of VOIP, with foundational patents dating back to 1994.
Alex will advise on the standardization and regulation of tokenized real estate such that it may be used as collateral for loans.
Hazem Danny Al Nakib: Hazem is a financial and regulatory expert, a partner af 7BC, and Managing Partner at Sentinel Capital Group where he works with corporates, governments and startups leveraging digital emerging technologies. Hazem sits on multiple advisory boards of companies leveraging blockchain.
Hazem will advise on regulation and institutional tokenization projects in Europe.
All three advisors will use their network to actively help DigiShares gain market progress.
DigiShares is among the first in Europe to provide a software platform that can be used for investment funds, real estate funds, and later stage startups to raise funding by issuing shares as tokens on the blockchain and offering them for sale. These tokens represent securities and are fully regulated under the issuer’s jurisdiction. Tokens can represent equity, bonds or other types of customized securities with revenue-sharing rights, voting rights, etc. DigiShares helps design the tokens and smart contracts to correctly represent these securities and the platform then manages the entire process related to the registration and verification of investors, distribution and signing of subscriptions forms and shareholder agreements, continuously updated shareholder registers, as well as the distribution of dividends, voting, etc.
DigiShares partners with international exchanges for the listing and trading of security tokens as well as investor networks to help ensure that issuers can sell their tokens and provide investors with future liquidity. DigiShares also partners with legal advisors across many jurisdictions to provide assistance with setting up SPVs, drafting private placement memorandums, prospectus documents, etc.
Compared to traditional forms of capital raises such as private placements, public offerings, and IPOs, an STO is less expensive and more “liquid” since it is easier to reach global investors. The biggest benefit by far is the fact that security tokens are tradeable and will soon be traded on special exchanges in Europe. This means that angel investors putting money in startups will no longer be stuck for 5-8 years but may immediately trade their shares with others. In a similar manner, investors into real estate projects and investment funds may achieve liquidity much sooner than before. For this reason, investors are expected to prefer STOs over traditional forms of capital raise which will in return make it easier for companies to raise capital with an STO – and potentially allow for increased valuations.
The platform is provided under the DigiShares brand, but also increasingly as a white-label solution for companies that want to operate their own issuance platform. This could be STO consultants, legal and financial advisors, equity crowdfunding platforms, etc.
Claus Skaaning, CEO of DigiShares: “The addition of these three advisors to our advisory board is a significant step forward for DigiShares. We expect that it will give us new opportunities for us and a better ability to devise our forward-looking strategy.”
Andrew Romans, CEO and General Partner of 7BC: “I look forward to advise DigiShares on blockchain and VC matters. I view DigiShares as one of the potential future leaders in tokenization of securities and see several synergies with my other activities within blockchain. Claus is also the City Managing Director for the 7BC roadshow event in Copenhagen where blockchain, fintech and AI startups pitch and meet local investors.”
The STO market is viewed as the “new ICO” and foreseen to become a very large market in the future, for instance by the World Economic Forum which has predicted that securities amounting to 10% of the GDP will be tokenized by 2025 ($12-14 trillion).