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article imageMaking investments with advanced blockchain technology: Interview Special

By Tim Sandle     Dec 1, 2017 in Business
Using advanced blockchain technology, the company Funderbeam undertakes investments that are tokenized. Each digital token represents its owner's rights in an investment syndicate. To find out more we spoke with Mads Emil Dalsgaard, CMO at Funderbeam.
The service that Funderbeam provides has been described as a “stock exchange” for startups, and its one that is based on blockchain technology. The Funderbeam platform is part research tool and part investment platform, which provides a way for startups to raise funding and for investors to invest in potentially high growth companies.
The platform is also secure and transparent, enabling work across borders. This is achieved through the blockchain technology that the Estonian company has set up. To explore how this works, Digital Journal spoke with Chief Marketing Officer Mads Emil Dalsgaard.
Digital Journal: Thanks for the interview. What are the advantages of blockchain technology?
Mads Emil Dalsgaard: Blockchain eliminates the need for trust, which leads to a massive decrease in cost, and allows many more people to participate in - mainly financial - transactions.
DJ: What are the specific advantages for your business?
Dalsgaard: We started out using it to test the technology, learn, and see how it can future-proof our business. Using blockchain, we can increase trust in the system, and in the future, we may potentially integrate with other platforms, markets and chains. This is a bit into the future though. Meanwhile, there's also limitations to using the technology. It's well-known, that there are crypto-assets worth millions and millions that are simply lost, due to the distributed nature of these assets.
DJ: What services does Funderbeam provide?
Dalsgaard: We offer three things. First, high quality research tools. Here when making your investment decisions, we provide you with free, high quality tools for researching, benchmarking and analysing industries and companies.
Second, it is a fast, cheap and diversified investment platform. Our investment process is fast, cost-efficient and allows you to diversify your portfolio. Instead of putting all your eggs in one basket, we let you spread your risk.
Thirs is the opportunity to exit when you want. Our one-of-a-kind secondary market lets you invest In startups with the flexibility of a stock market. If you might need liquidity in the future, you’ll be able to exit given that a buyer is available.
DJ: How long did the platform take to develop?
Dalsgaard: It's an ongoing process, and it's never finished. So far, we've been working on it for four years.
DJ: What has been the response from investors?
Dalsgaard: It has been overwhelming. There's a clear demand for liquidity, and there's hasn't been anywhere for investors to get it. Of course, there's always some adoption time, and we need to convince the world that we are trustworthy, and not just a temporary player.
DJ: What are the typical trading and investment opportunities offered?
Dalsgaard: We are mostly offering equity inestments in relatively early stage companies, but we have been moving toward later stage and SME's, and can also offer to issue bonds. In terms of industries, we are quite agnostic as we frequently ask our investor-base what they are interested in, there's a very broad spand from advertising to healthcare, sustainability and AI.
DJ: What has the take up of the service been like? Does it appeal to a particular demographic?
Dalsgaard: We have verified investors in more than 100 countries who are ready to invest, and we have seen that a significant amount of the funds raised is coming from all different demographics: new-comers who invest 500-2000 euroes are contributing along with venture capitalists, most notably one venture capitalist just invested one million euros through the platform.
DJ: What other projects are you working on?
Dalsgaard: We are laser-focsued on building the best possible platform for investing and trading growth companies. Of course, this involves a lot of sub-projects, and right now, one of the main priorities has been to create really good tools for investor relation and portfolio management.
This is something that our users, both investors and founders, are telling us is important to them, so of course we have to focus on this right away. We are always making or product decisions based on what the users tell us, either directly in surveys and chat, or by looking at data on how they use the platform.
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