Spotlight on Dacxi Chain — UK Crowdfunding Association
An interview with: Ian Lowe, CEO and Executive Director at Dacxi Chain, a platform focussed on innovation and connectivity.
Tell us more about Dacxi Chain?
Dacxi Chain is transforming equity crowdfunding by connecting crowdfunding platforms from different jurisdictions around the world into a single network.
Dacxi Chain technology is a purpose designed API framework that connects licensed platforms to each other from anywhere in the world. The enablement of this scale benefits all stakeholders; companies have access to more capital making equity crowdfunding fundamentally more attractive, investors gain access to international deals via a trusted local platform, and platform providers can offer these same benefits to issuers and investors alike. Dacxi Chain will further expand its capabilities over coming months with blockchain enablement, providing issuers the option to leverage blockchain to also enhance transparency, trust, scalability and future liquidity.
By leveraging the network effect, Dacxi Chain aims to democratise investments and foster a collaborative, global crowdfunding landscape.
Why did Dacxi Chain decide to join the UKCFA?
Joining the UK Crowdfunding Association (UKCFA) was a bit of a ‘no-brainer’ for Dacxi Chain. Becoming part of a reputable organisation that advocates for the growth and integrity of the crowdfunding industry in the UK aligns perfectly with our vision. We now have access to a network of industry leaders, regulatory guidance, and best practices to ensure we fully understand the opportunities and challenges faced by our partners. Being associated with the UKFCA also signifies a commitment to high standards and trustworthiness, which in turn enhances credibility and fosters confidence of the platforms that we could work with within the industry — not just in the UK — but worldwide.
Tell us your current take on the industry, what works well and what present or future issues might affect the industry?
Equity crowdfunding is today an early-stage but established industry, valued at circa USD$2b per annum, and is in modest growth in most jurisdictions around the world.
At circa $2b, it represents less than 1% of all investment in early stage ventures. With the undeniable potential of connecting thousands of growth companies with millions of investors around the world, equity crowdfunding should be a USD$200b+ industry.
The constraints preventing equity crowdfunding from realising its true potential are largely understood, however the innovation required to overcome them has to date been lacking.
Constraints
- Lack of scale (deals to invest in, investors to invest)
- Regulatory constraints, particularly cross jurisdictional complexities which largely guarantees equity crowdfunding will remain an almost exclusively local proposition in each market of operation
- Lack of liquidity for investors
Solutions
- Purpose built infrastructure that allows equity crowdfunding platforms around the world to connect and share deals with each other in a regulations compliant way. This is a game changer as it creates a global marketplace of deals and a global crowd of investors, both with genuine scale
- Blockchain enablement will start to provide material benefits including:
- automation of critical operations tasks and compliance requirements including KYC/AML, independent immutable record of investment, custody, share register management etc.
- tokenisation of equity issued to investors and access to secondary markets where they are freely traded (liquidity)
- instant, low cost transfer of investment funds from/to any country and currency
If you would like to learn more about Daxci Chain or speak with Ian directly, please visit: https://www.ukcfa.org.uk/company/dacxi-chain/
