The Future of Finance and Blockchain Technologies used for SMEs Financing


Despite playing a major role in the economy, small and medium sized enterprises (SMEs) still suffer from a deep funding shortfall. Traditional finance does not offer appropriate answer to small and mid-cap market. Access to finance appears to be the largest challenge for SMEs.

The combination of non-reliable public information and complex share transferability mechanisms doesn’t attract investors because of the illiquid nature of investments. Investors are looking for safe corporate values ​​and sufficient liquidity to swap shares. For SMEs, time to market is often a major milestone. Financing deadlines must follow the rhythm of strategic companies’ decisions.

SMEs had so far only few financing tools at their disposal until the emergence of token based fundraising mechanism, most well known as Initial Token Offering. This new method is an important step for the global finance ecosystem towards the decentralization of finance.

In 2018, almost 21 billions of dollars have been raised to finance up to 900 projects. Although this fundraising method still remains marginal compared to other traditional methods but represents an important development potential because of its own innovative characteristics. Indeed, token based fundraising mechanism offers a way to attract, during any life cycle company stages, every kind of investors at global scale 24/7/365 (institutional, corporate and retail) by offering an easily transferable asset capability. Besides, it allows to dissociate financing and control of the company and ability to make known a company before its success. We are deeply convinced that it’s a financing game changer.

However, current access to this new powerful fundraising way remains very scattered, costly and opaque between service providers (token design providers and crypto asset exchange platforms) and key stakeholders (entrepreneurs, investors and traders). Those obstacles prevent mass adoption of this new fundraising method directly offered to SMEs.

Our primary goal is to bring a turnkey solution by providing more trust and transparency in this field allowing entrepreneurs to fund their entrepreneurial dream through a set of token based fundraising campaign (ICO*, STO* or BRO*). We will modernize raising capital by facilitating its access and upgrading a traditionally illiquid and costly process.

What is TOZEX?


TOZEX is a financing platform which integrates a “Tokenpad” allowing to set up a token based crowdfunding campaign dedicated to finance SMEs project with an embedded trading market place. What current actors can offer in 2 to 4 months, TOZEX can offer it in few days without any specific skills at cost effective.

The primary goal of TOZEX is to improve access to SMEs financing by using Blockchain Technology and gather in the same trustable ecosystem entrepreneurs and investors.

“We build too many walls and not enough bridges.” Isaac Newton

TOZEX is a unique gateway between the primary and the secondary market. It removes all the existing barriers of managing the token life cycle relative to the fundraising campaign (issuing, financing, and trading) within one unique automated and fully regulated platform.

Our open source smart contract library allows entrepreneurs to select the most adapted token based fundraising mechanism to their project and needs (ICO*, STO* or BRO*). In addition, for the more experienced users, they will be able to choose their own Blockchain network between Ethereum, Ethereum Classic, RSK or Credits to deploy their newly issued cryptoasset.

Once, the fundraising stage is successfully completed, tokens are going to be traded on the secondary market. In this purpose, the project will be first submitted to our internal Committee of Control and then to the community through a voting phase.

TOZEX platform is the perfect place to exchange them on the secondary market through an auditable decentralized order book avoiding market manipulation and ensuring the liquidity demand.

Who are TOZEX users?

TOZEX has been designed for all key stakeholders of such specific fundraising mechanisms. They will have the opportunity to exchange value at different stages of the token life cycle within a trustworthy ecosystem. Indeed, TOZEX will provide a unique gateway to create a sustainable primary and secondary market for:

1. Entrepreneurs who are looking for investments. They could launch a token based fundraising campaign (ICO, STO or BRO) without the need to know a single line of code and suffer from extensive costs. They will be able to manage all token life cycle phases (issuing, financing and trading) in the same platform by using friendly and customer centered tools. Entrepreneurs will also benefit from a huge marketing and communication exposure through our community network effect.

2. Investors who want to invest in SMEs at an early stage without suffering from illiquidity of their investments. They will have an opportunity to compare profitability and risks of projects in order to select the best potential valuable projects. Investment decisions will be made on reliable information and conditions and investments will be transparent and definitive.

3. Traders who are looking for a new model of cryptoasset exchange platform which offers the possibility to trade valuable assets with transparency, security and competitive fees. Orders will be based on auditable & real time trading volume (decentralized order book) and on historical track record information related to the cryptoasset.

Finance built upon Blockchain infrastructure will open up new possibilities for financial innovation specially for financing SMEs. For the first time in history, SMEs have at their disposal programmable capital raising mechanisms which bring wider access, transparency and liquidity. Entrepreneurs can recapture sovereignty over their finance. It will be without doubt the preferred capital raising avenue for SMEs within next years.

The token is at the Blockchain what the email is to Internet, a tool to represent and transfer value. Tokens will be at the heart of the future economy and TOZEX will be the gate to this promising future.

Let’s Decentralize and Democratize Finance!

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Check our previous article:

Viable Alternative To ICOs — Introduction of The “Believers Reward Offering”(BRO)

read original article here