A Global Infrastructure and Ecosystem
KoreConX is thrilled to announce the launch of its highly anticipated Infrastructure of TRUST for the global private capital markets.
The private capital markets serve over 450 million private companies worldwide today. The service providers supporting these private companies are using ad hoc and internal systems. Private markets are opaque, making it difficult to validate information or find service providers. These issues make it inefficient and costly for companies to raise capital and for investors to find good investment opportunities. The underlying cause is simple: millions of independent and fragmented providers have no connected infrastructure and, more importantly, no trust in the integrity of the information they come across.
The public capital markets have an infrastructure that provides standards and efficiencies with which all participants in the public markets can integrate. Now, the Infrastructure of Trust allows participants of the private capital markets to enjoy the same benefits without excluding anyone.
“My personal journey in democratization of capital is going 10+ years strong. The major realization I’ve had three years go was that to really make a lasting change in the private capital markets, you don’t disrupt, you empower. Once you empower the ecosystem, you can finally say we are now in an age of transformation,” said Oscar Jofre, co-founder and CEO at KoreConX.
KoreConX provides this transforming Infrastructure of Trust for the global private capital markets. This is a complete and connected ecosystem of regulated entities on the KoreChain, a permissioned blockchain built on Hyperledger Fabric. Participants on the KoreChain are required to be regulated entities and authorized to validate securities transactions.
“The way to really improve private capital markets is to connect together the existing regulated entities that service this market, no matter their size or location, and streamline and standardize processes in much the same way that broker dealers have connected into stock exchanges, ATSs, clearing organizations and other entities. We need regulated professionals to work together in a system to create a broader ecosystem that they trust, in order to simplify execution, compliance, and distribution while reducing direct and indirect costs,” said David Weild, “Father” of the Jobs Act, former Vice Chairman of NASDAQ and founder of Weild & Co.
The Infrastructure of Trust comes with an all-in-one platform of key applications for managing the complete lifecycle of various securities such as shares, options, warrants, bonds, debentures, promissory notes, and other complex instruments. The application layer capabilities have been proven, as they have been fully functional for over four years and trusted by over 85,000 private companies.
Kevin Saunders, partner, Non Correlated Capital, said, “This Infrastructure of Trust is exactly the solution our industry needs. This is going to transform how I can help my clients access capital worldwide and work with other broker-dealers, law firms, secondary markets, and investors. This is a Game Changer for my business.”
This makes it easy for participants to become members of this infrastructure, allowing them to focus on what they do best rather than on the technology or worrying about trust.
“In designing the Infrastructure of Trust, we kept the needs of the private capital markets, focusing on the safety, security, and compliance of the participants. We chose not to get distracted with inadequate, untrustworthy, and unscalable public blockchains. This launch and the continuing evolution of the Infrastructure of Trust is an expression of our belief that our permissioned blockchain best serves the needs of the private capital market ecosystem,” said Dr. Kiran Garimella, Chief Scientist, Technology Officer, KoreConX.
The Infrastructure of Trust empowers all participants such as private companies, investors, broker dealers, secondary market operators, lawyers, investor relations firms, transfer agents, share registry, regulators, and many others to conduct securities transactions in fluid and frictionless way.
“Having spent over a dozen years helping small businesses in North America, Europe, Middle East, and Asia, I am excited to be a part of this change. The fragmentation of the private markets always made my job as an investment banker very difficult and frustrating. An infrastructure to connect all the parties to enable the sharing of information, speed up transactions and ultimately reduce inefficiencies is long overdue,” said Jason Futko, co-founder and CFO at KoreConX.
The launch of the Infrastructure of TRUST has been a major evolutionary milestone for KoreConX, with the support of over 350 KorePartners worldwide (and growing rapidly), all of whom are regulated entities and have wide experience in the private capital markets.