PODCAST | The economics of raising capital through the blockchain

Raising capital through tokenisation, underpinned by blockchain technology, is the focus of this edition of Business Day Spotlight. 

Host Mudiwa Gavaza is joined by Connie Bloem, co-founder and executive head at Mesh.Trade.

Listen to the conversation:

Mesh is a financial markets platform for cross-asset issuance, trade, investment and management of digital and financial assets. The platform make use of blockchain — the technology underpinning asset classes such as cryptocurrencies — to deliver services to clients.

The company recently helped raise R100m for Die MOS, a network of Afrikaans-medium schools, through a tokenised bond, offering a 0-year prime + 2% floating rate. The raise was completed in “just a few weeks” according to Bloem, who explains that such processes tend to take much longer. In addition, 17% of notes from the capital raise are owned by retail investors. The minimum amount to invest had R5,000. 

Bloem says her company is helping to changes how business can access funding for their operations. She says Mesh.trade now a viable alternative way to raise funds versus traditional private equity, venture capital and listing.

The company is also working to reduce the complexity usually associated with such funding processes. Many companies are excluded from raising money in traditional capital markets because of a complex web of exclusionary costs and compliance obligations, Bloem explains. 

The discussion highlights raising capital through tokenisation; Mesh.Trade’s business model; how tokens are being applied to real-world assets and fund raising; global trends; and the outlook for the sector. 

• Business Day Spotlight is a MultimediaLIVE Production. 

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