For too long, the creative potential of entrepreneurs and engineers working together to solve the critical problems facing our families, communities and planet has been stifled and stymied by lack of capital. Talent and drive are spread throughout the world, yet capital is amassed in a few metropolitan areas, pooled in large funds and available only through select channels.
At the same time, the rewards from the creative efforts of talented teams and individuals are disproportionately collected by wealthy investors who have access to select funds, deals and their gatekeepers.
We’re committed to changing all that. Social Capital is a new dynamic that will bring together investors, entrepreneurs and their teams in meaningful projects to protect the planet, improve society and create wealth for every participant.
Until the advent of the blockchain, crypto assets and security tokens, it was a long journey between the source of capital, investors, and the use of capital, the individuals and organizations putting money to work building a better world. During that journey from the capital markets to fund debt or equity instruments, money would be lost to brokers, waste and inefficiency.
The current system of the capital markets is oriented around transactions. Brokers, bankers, portals and promoters get paid when deals are closed. Issuers collect capital when deals are closed, and investors achieve liquidity when deals are closed.
For centuries, the Capital Markets have dictated the terms of the debt and equity instruments available to individuals and companies. This inefficient, expensive system creates onerous, sometimes predatory terms that saddle borrowers with high-interest debt and puts company founders and their teams at the bottom of a stack of liquidation preferences, anti-dilution provisions and pro-rata rights granted to equity investors.
The reality of finance, for both individuals and organizations, is that capital is an ongoing need. Those who provide capital, the investors, should have ongoing access to the recipients of their investments. They should know about the challenges, the victories and every aspect of performance. This should be reflected in both metrics and narrative that together tell the story of the investment.
Social Capital is a new form of financing that will make more capital available to individuals and organizations, on better terms, while improving returns to investors.
Benefits of Social Capital to investors include:
Benefits of Social Capital to issuers include:
Security tokens have inverted the capital formation process for companies. Instead of raising funds gradually on milestones over the course of years and ultimately achieving liquidity in the public equity markets, companies can be fully capitalized and liquid before being operational.
Indeco will help security token issuers report on their progress and perform against their promises. We plan to help investors determine the right value for security tokens, and make the decision whether to buy, hold or trade.
We’ll also help both issuers and investors comply with the SEC regulations designed for their protection, so that some day security tokens can be an important part of every investment portfolio.
The primary exemptions from registration of securities under the JOBS act follow:
Under the SEC’s Regulation Crowdfunding rules everyone to participate in our token pre-sale, regardless of income level or net worth. Issuers can raise up to $1,070.00 each year.
The Reg D exemption allows accredited investors to participate in our token pre-sales with no limits on the amount of funds an Issuer can raise.
By issuing security tokens to the general public in a ICO under Reg A+, subject to qualification by the SEC, issuers can raise up to $50 million a year.
We plan to partner with JOBS Act Title III and Title IV portals, lawyers, accountants and other service providers to a complete, long-term solution for both issuers of, and investors in, security tokens.
Featured video: Indeco CEO David Levine is interviewed by Peter Armstrong on the popular CBC show "On the Money" about the regulation of cryptocurrencies shortly after the SEC froze the assets of a Quebec company that had raised $15 million in a non-compliant ICO.
Visit our YouTube channel for more.
Because our materials describe a security token or pre-sales security being offered under several SEC exemptions, you will be directed to the document repository appropriate for the status of your accreditation and verification.
Quantum etymologist, perpetual entrepreneur, post-punk :: post-carbon.
Founder, Smart City Works; Former Assistant Secretary for Policy, Department of Homeland Security; Senior Advisor, DOE.
Investor, Advisor to Bioverse & New Fashion Pork; Former President, Miller Brewing Company.
Currently Board Director of Opus One Solutions and EnergySec; Advisor to several energy companies. Previous Chairman, Midcontinent ISO; CEO of Columbia Energy; Utilicorp United; GM of Novell, and VP of AT&T.
Retired Partner and Chair WilmerHale Financial Institutions Group, Former CIA General Counsel, Chief Counsel-Congressional Affairs for the FBI.
Advisor to the Chief Creative Officer, Magic Leap; Venture Partner, AID Partners; Former Chief Strategy Officer, THQ; Executive Consultant, HBO; Business Development Executive, Activision.
Structured finance guru specializing in energy generation and storage. Swell, Tesla, NRG Energy and Citigroup.
Former Mid-Atlantic Regional Administrator for the U.S. Small Business Administration. Presidential Appointee from 2012-2017. Managed $8 billion in small business loans.