Harbor Platform 2.0 – Simplifying Capital Fundraising Through Tokenization Of Private Equities
This week, Harbor released a new version of their platform, called Harbor 2.0. The update will offer a customer-branded solution that simplifies fundraising, investor management and issuance of private equities.
Harbor Platform 2.0 is driven by blockchain technology. This digital securities platform enables businesses to tokenize their private equities and streamline the fundraising process. Further, it also fosters the interactions between businesses and their customers as well as partners.
Speaking on the new release, Josh Stein, the CEO of Harbor, said that startups are seeking novel methods of raising funds directly from investors without going through intermediaries. Harbor 2.0 does this by allowing business to tokenize their equities and sell them directly to investors. Also, the platform ensures that the equity programs remain liquid throughout.
Although the existing version of Harbor allows the tokenization of private securities, it is only accessible through a managed service by Harbor. Harbor 2.0, on the contrary, will be available directly to startups. Therefore, it can be used to generate compliant tokens, as well as marketing investment opportunities.
Additionally, Harbor 2.0 will enable businesses to increase the efficiency of integrating and verifying new investors, automate fundraising and access new liquidity options thanks to the aforementioned compliance. The standout features of the new platform are the branded investor portal, an issuer dashboard, and a Trusted Parties functionality. This unique feature allows companies to create special conditions for trading for trusted investors. The rules and exemptions for trading securities will be executed by the Harbor compliance protocol.
Arisa Amano, the chief product officer at Harbor, expounded on the Trusted Parties feature. She noted that some companies are different; they want to have close control over their cap table whilst unlocking liquidity to a select group of investors. Arisa added that Harbor 2.0 is the only platform that offers such functionality and tracks the actual identity of buyers and sellers. Thus, businesses can avail a customized trading environment for trusted investors, albeit in compliance with securities trading regulations. The issuer dashboard allows startups to monitor any changes in ownership of the securities in real-time.
Below are some of the potential use case for the Harbor Platform 2.0. They are based on actual conversation with interested clients.
- Sports franchises seeking capital and fan engagement – sports teams can engage fans by distributing private equities to them. Some of the incentives that can be offered under this program include discounted tickets, customized merchandise, and meetings with players.
- Promising startups with insufficient capital – upcoming businesses can tokenize their private equities to assist with fundraising.
- Startups seeking lenient fundraising alternatives – companies that have a strong client base can capitalize on that and attract additional funding from investors, thereby lowering the cost of capital.
The Harbor platform emphasizes security and incorporates KYC/AML for verification purposes. Lastly, there is also an API that allows businesses to easily integrate the Harbor 2.0 platform into their existing software platform.