Updated: Feb 19, 2019
Ever needed to put resources into new innovation ventures, technologies, imaginative product offerings and new brand expansions from industry pioneers? An endeavor called ARCNET, the world's capital market –where everyone can access capital based on the power of their ideas and innovations, unlocking the potential for a worldwide coordinated effort. What is ARCNET? A platform where the world’s leading innovators can invest in the power of an idea, not a physical location. It is a next-generation infrastructure for investment. With ARCNET, one can democratize access to capital, and give capital equal access to global projects. “ARCNET will change innovation financing.”
Arcnet will use innovation in cryptography – like blockchain and distributed ledger – so as to empower people to compete for investor investments – in light of the benefits of each imaginative thought. Imagination is universal so why isn’t capital? Xinova, a Seattle-based invention network, and Arc, a New York-based fund management firm are teaming up to re-imagine capital markets with their new joint venture Arcnet. Arcnet enables investors to find innovation projects globally, no matter where they live. Arcnet is the world’s first open-investment network that utilizes blockchain and distributed ledgers to automate processes related to early-stage innovation projects such as authentication, compliance, and accounting. Xinova is the world’s first and only innovation market network. Moreover, it already has a global market network of more than 12,000 innovators. Whereas, Arc provides asset managers with capital markets experience. Arcnet brings the role of a bank, exchange, and broker into one decentralized platform. One of the first listed projects on Arcnet is a venture that invests in fleets of zero-emission buses throughout Latin America. Arcnet unites various partners who need to pool resources for the bus project and dealing with the financing in one place with distributed ledgers and blockchain tech. Think our advanced financial systems are restricting the world's advancement! “It is inevitable that the old financial networks, predicated on physical exchanges, will be replaced by an online platform where ideas can openly compete for capital,” said Bryan Wisk, Co-Founder of Arcnet and CIO of Arc. Arcnet’s Objective: In today’s scenario, financial systems have plenty of rules, fees and systems which can restrain the ability of capital to flow freely. One of the prime requirement is the narrow range of assets in which assets can be made. In fact, the majority of these principles seek to create a trusted environment which facilitates the global exchange of capital. But the reality is these rules tend to produce complexity. From this context, the two main aspects of Arcnet are: ● to help companies to seek capital for early-stage innovation projects ● cross-border trading of alternative assets
When an investment opportunity lists on Arcnet, it becomes available to all investors who can then invest in a project or asset. Moreover, investing will be without the traditional challenges faced by those who issue conventional corporate securities – such as stock or bonds.
It will be ‘regulation-compliant’ which will provide advantages for all involved. It enhances the speed of capital delivery for innovation projects and ideas. It opens the door to additional sources of capital. Geographic location, for both investors and beneficiaries of capital, won't make any difference. Arcnet will simplify the existing capital exchange markets by encoding operations, regulation and distribution onto one network platform that automates manual processes such as authentication, compliance and accounting through a distributed ledger, thereby reducing fees and increasing speed. For instance, 60% of investment fees tend to cover overheads rather than apply to the asset management itself. The main aim of building Arcnet is trust. By creating a neutral meeting ground with encoded compliance, participants in a project (e.g. operators, manufacturers, investors, etc.) will communicate directly and transparently with assets and records held in cryptographically-secured databases visible to all participants. The scope of Arcnet: The introductory Arcnet framework launches with a pipeline of more than 100 past concept development projects (they will list for investment over time). Innovation project investments range from $50,000 to $100 million per project. For Example: ● a kitchen orchestration software startup ● food quality and safety technology and products ● a smart transdermal drug delivery system for minimally regulated substances. One of the first listed projects on Arcnet is a venture that invests in fleets of zero-emission buses throughout Latin America. In the initial stages, Arcnet is pursuing small pilots which replace diesel buses with electric buses in Cali and Bogota, Colombia; Lima, Peru; and Såo Paulo, Brazil. In the future, this can expand to embrace larger fleets of both buses and trucks.
Arcnet Platform: Arcnet will utilize a blockchain distributed ledger. This will empower multilateral consortia to meet up – with blends of: ● stakeholders ● technology suppliers ● manufacturers ● investors ● others. Their common reason for existing is a long-term, shared-cost model which demonstrates: ● delivers capital to projects. ● accelerates solution delivery. ● shares in the up-side of each project.
The expectation is that, by utilizing a distributed ledger for accessibility and visibility, every consortium can: ● obtain a market advantage which capitalizes on each distinct opportunity as quickly as possible. ● deploy those solutions for financial reward. ● bypass others who are trying to solve similar problems either on their own or via traditional capital raising methods.
But as well as large multinationals, competitive stakeholders, Arcnet may also help smaller innovators, such as those in Xinova’s extensive network, commercialise IP and technology which might otherwise not be utilised.
As Brad Roberts, Co-Founder of Arcnet and Head of Network Platform at Xinova highlighted: “There are so many smart people out in the world that don’t have access to capital”. Arcnet changes that.