FundedX will allow legacy shareholders to monetize their returns.
Crowd-sourcing platform FundedHere launched FundedX as a secondary broker platform to enable trading for high-growth startups and privately-held companies in Southeast Asia, an announcement revealed.
To enhance the transaction process, the platform eyes to integrate smart contracts powered by blockchain technology into the process to allow a safer and more cost-efficient trade.
FundedX will allow legacy shareholders including ex-employees and early investors to monetize their returns. Employees with stock options seeking partial liquidity can also submit verification of ownership to participate in the exchange.
Those who are interested to invest can submit buy requests which will be processed through FundedX’s algorithm to match transactions. Upon pairing, shareholders and investors whose shares are under transaction will need to approve the sale and deal terms.
The new platform eyes to have end-to-end process completed within two weeks.
“FundedX is a game changer that will help to bring much-needed liquidity to the private market,” FundedHere co-founder and executive director Daniel Lin commented.
The new platform aims to remove the need for individual parties to connect directly with intermediaries, company secretaries and share registrars through an end-to-end process. This includes connecting companies to a global investor base, to assessing shareholders and interested buyers, to taking on administrative burdens, and providing the transaction framework.
FundedHere has secured a regulatory approval from the Monetary Authority of Singapore (MAS) in 2016 as the first crowdfunding player in Singapore to be awarded a Capital Markets Service License, allowing the company to deal with securities.
The firm noted that it has already received interest from Southeast Asian investors, firms, and shareholders who want to participate and transact in the platform within three months.
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