CF Markets - A World First in Crowdfunding
CF Markets - A World First in Crowdfunding
This week I was excited to speak to Paul Teo, CTO of Crowd Funding Markets Ltd ("CF Markets"). CF Markets is the world’s first blockchain-powered Secondary Market for crowdfunded equities, offering equity (and soon debt) investments in global startups.
Thanks for joining me today. First, up - the pitch! What is CF Markets and why does it exist?
As you’ll know, access to private markets has increased dramatically in recent years with shares being offered on a range of platforms with a low minimum investment. Despite this, the secondary market for startup shares is still underdeveloped. Existing options are essentially bulletin boards with limited open hours, long settlement times, and high fees. Furthermore, current platforms are limited by jurisdiction with investors only able to access startups from certain regions or certain countries.
The existing market means startup investment sees delayed exits and limited capital availability for retail investors. Furthermore, would-be startup investors are put off private equity opportunities due to illiquidity. Typically, crowdfunded companies don’t provide clear exit routes for their investors. This leaves capital locked up for undefined periods of time.
CF Markets represents a significant elevation in the global secondary market offering for private equity. It does so by offering three core benefits above existing platforms:
Liquidity for early backers
Unrestricted opportunities
Secured by the blockchain
“CF Markets represents a significant elevation in the global secondary market offering”
Amazing - thank you. Can you walk me through those benefits a bit more - how do they change the way retail investors buy and hold start up shares?
Sure - firstly; liquidity for early backers. On CF Markets, existing investors looking to exit their investment can interact with interested prospective buyers who may have missed out on initial fundraising rounds. They have access to global investors (something no other platform is yet to offer) and can negotiate quickly and constantly on the platform.
Next; unrestricted opportunities. Unlike existing secondary market platforms, CF Markets does not impose any restrictions on trading hours. Our market is open 24/7 with global investors able to trade and settle constantly. This not only increases the time available to trade but also the number of jurisdictions, and therefore investors, that are able to trade during normal business hours.
Finally; secured by blockchain. By using the blockchain to initiate and log transactions, CF Markets is the world’s first blockchain-powered Secondary Market for crowdfunded equities. As well as increased security and full transparency this, significantly, means instant settlement. Prices are negotiated on the blockchain, for all investors to see, and once accepted the ownership of the shares are immediately transferred from seller to buyer. This removes the need for startup intervention and limits the opportunities for back outs and market changes during negotiation. The foundation of blockchain technology at CF Markets is the big disruptor in this space that is yet to be implemented, until now.
“By using the blockchain to initiate and log transactions, CF Markets is the world’s first blockchain-powered Secondary Market for crowdfunded equities”
That’s a significant change to the current market. So, what stage of development are you at and what do the next few months look like?
Our platform is built and our technology is tried and tested. The next few months therefore focus on increased brand awareness and increasing both startups and investors on our platform. Specifically this means:
Enhancing User Experience: Improving the user experience by creating a user-friendly interface and ensuring a smooth and seamless trading experience.
Increasing Market Access: Expanding market access by increasing the number of geographical locations where the platform is available.
Adding New Features: Adding new features such as advanced analytics, real-time market data, and trading tools to provide users with more powerful trading capabilities.
Building Community: Building a strong community of traders and investors by providing educational resources, forums for discussion, and social trading features.
Improving Security: Ensuring that the platform is secure by implementing the latest security protocols and providing users with tools to protect their assets.
Our aim is to soft-launch in the UK with high-net worth individuals in June 2023 before increasing global access incrementally over Q3 and Q4. Our next most significant milestone comes in 2024 when we plan to introduce peer-to-peer lending.
Exciting! I know you’re raising investment at the moment - how can people get in touch should they be interested?
Yes, that’s right. We’re close to closing our S/EIS funding round but still have availability for angel cheques. If you’d like to invest in CF Markets feel free to get in touch at info@cf-markets.com