309Write - Security Measures Smart Ventures Capitalist Are Employing for Their Business

Security Measures Smart Ventures Capitalist Are Employing for Their Business


In 2020, there are various different approaches or methods that venture capitalist firms, capital investors, or businesses can adopt to raise funds to launch a new service, product range, business start-up/venture or enterprise. Since the inception of automation and blockchain industries, the standard practices that involve business funding transactions for financial investments have become irregular and erratic despite the increasing availability of new resources and innovative tools to fund new business ventures/startups, enterprises, or projects. Traditional investments made through Initial Public Offerings (IPOs) have become less and less relevant owing to their high-risk factor as well as no security of funding or transaction data and information. Innovative and smart platforms to fund projects like Crowdfunding have offered greater flexibility to companies to secure funding as well as for investors to comprehensively study the future prospects and sustainability of the project before making investments, but despite that, a lot of business startup projects or ventures fall short of or lack sufficient amount of business finances or funding. 


What Makes Digitally Encrypting Business Data So Crucial Today?


In the last decade, cryptocurrency-enabled funding has been one of the major talking points in regard to this issue. The introduction of daisy-chaining of blocks of encrypted financial transaction information into 'blockchains' opened yet another avenue for capital investors or venture capitalists as well as companies looking to launch a business project or startup. This new alternative is a quite popular today especially within startups and acts a blockchain-encrypted version of IPOs called Initial Coin Offerings (ICOs) and allows interested capitalists or investors to purchase an ICO in return for which they receive a cryptocurrency token that represents the funding or finances transferred for that ICO, exact details and certifies or validates every last detail of ownership data for the investment project, the transaction along with a timestamp for a cohesive database and also allows software integration to monitor or regulate project funding status or live project finance and expenditures reports. In recent years though, there has been large-scale criticism from various governments, legal policy, and regulatory authorities as well as many startup project stakeholders and investors in regards to the ICOs not conforming to security laws and regulations across various countries as well as offering no realistic collateral between investors. 

As a dynamic innovative solution that ensures cryptocurrency tokens are backed by assets which are compliant to governance and enforcement of legal regulation, a new alternative to ICOs called Security Token Offerings (STOs) have been introduced to give investors token offerings which designed as investments, unlike ICO tokens that are utilities or tools that provide access to decentralized applications (DApps) and native platforms, and therefore often evade various policy and regulatory framework within various local and national jurisdiction across nations. 


A Whole New Paradigm for Security & Encryption of Business Project Investment Data


In recent times, small-scale investment methods such as cloud funding and social lending have become quite prevalent, but more people are exploring new ventures and businesses and there is an increase in the scope for a financially broad range of people/capital holders to participate in investments. There is a distinct need to help the system into a practical realization. 

Standard Capital Co., Ltd. has been a pioneer in implementing blockchain technology to encrypt and secure transactions from 3rd party individuals or vice versa within Japan, since the company's inception. Currently, the company is working on development of security token exchanges to resolve the issues with traditional or other more recent methods of raising investment funds for a new venture, as well as a proprietary norm or practical standards for security token offerings in Japan. Standard Capital is currently also involved in issuing STOs for real estate projects, ventures, and real estate-specific startups or businesses as well, delivering security token exchanges and relevant infrastructure for projects and ventures both overseas as well as in Japan.


Recent History, Current Developments & Future Prospects of STOs


In June 2019, Standard Capital Co., Ltd. commenced a business alliance with a company from Philippines, Rare Earth Asia Technologies, where both companies began a joint venture to operate the security token exchange. Standard Capital has also deployed the first STO funded project in the Philippines in November 2019 after agreements with the CEZA at the Cagayan Special Economic Zone Agency.


◆Previous Milestones at Standard Capital Pvt. Ltd.◆

  • December 2018: Start of development of Security Token standard in Japan

  • January 2019: Started building STO platform

  • March 2019: Partnership with IDCM to develop Security Token standard (JP20)

  • April 2019: Unified Security Token standard to JP standard recommended by GIASTEC

  • April 2019: Proposed the plan of ALLEX (= ALL EXCHANGE)

  • May 2019: Joint development of JP standard (JP20) with Early Works

  • June 2019: Announced plans to establish a joint venture with Rare Earth Asia Technologies to operate security token exchange

  • July 2019: J-FTA real estate distribution system started testing

  • September 2019: Established joint venture ALLEX with Rare Earth Asia Technologies 

Globally the company has received valid authority as an officially recognized Security Token Exchange, which in anticipation of soaring global demands can deliver sufficient STOs to an expansive rate of business ventures and startups as of 2019. The company is poised to deliver the most secure encryption, management, recording, regulation and organization of investment and funding assets or project assets by staying compliant to the original standards and functioning parameters of blockchain security. The company aims to enable complete security and transparency in investment or funding data encryption to investor parties across a plethora of businesses across the globe. Although the blockchain standard JP20 has been deployed in Japan, Standard Capital continuously perseveres to help instill it as the global standard for blockchain encryption and STOs for business projects.

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