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Venture capital (VC) is a form of private capital, a form of financing offered by companies or small and start-up enterprises with a large development potential. VC entities invest in companies in exchange for equity or participation in enterprises that are subject to investment.
The VC pattern has developed over the past years, gaining popularity in many countries around the world. This form of investment has helped many companies to succeed, while generating substantial profits.
The biggest problems of the Venture Capital sector
The VC sector undoubtedly brings a number of benefits, but it is not free of certain disabilities, which have meant that for a long time the VC industry has become stuck in a selective and small group, inaccessible to the majority of ordinary investors. One can point to the three main problem areas of the VC industry.
first there are entry barriers from them. Investing in a VC fund requires a contribution of no less than 1 million USD, the acquisition of which is impossible for most small businesses. Even an individual investment requires a commitment of nearly 100 thous. USD.
The second the area is the complexity of Venture Capital processes. Investing this way requires specialist knowledge about the market, in order to make an accurate assessment and effective management of investment quality.
third The problem area is, on the other hand, frozen capital - a Venture Capital fund takes an average of 10-12 years to return capital to its investors.
VNX will solve Venture Capital problems?
One of the main aspects that can contribute to solving problems related to VC is market liquidity, which can open up new market horizons to current customers, while encouraging others. New solutions can be provided by VMX based in Luxembourg.
VMX is the first trading platform and at the same time a transaction platform for tokenized Venture Capital assets. Its decentralized nature provides investors with much faster time to exchange assets for cash, more cash for operations and easier ways to raise new funds.
VNX has set itself the goal of making the Venture Capital sector more open to investors, in return for which it will have a share in profits. Thanks tokenizacji their investments, which will make them transferable in the liquid secondary market, VC will attract even more investors, and hence will significantly reduce capital blocked for current investors. The blockade of capital will be reduced to only 2-3 years, which is undoubtedly an advantage compared to the previous period.
What's more, the company plans to develop the platform's infrastructure and services in full compliance with EU regulations, and therefore applied for a Luxembourg license CSSF (Commission de Surveillance du Secteur Financier).
In addition, according to representatives of VMX, the use of technology blockchain and tokenization of assets provides many additional benefits compared to traditional capital markets, such as even greater independence from intermediaries, stock deposits, clearing houses, transfer agents or custodian service providers. These solutions ensure a high level of automation, while increasing the level of security and transparency.
Not without significance is the fact that VNX cooperates with the foundation NEM regarding the development of a liquidity program to encourage Venture Capital to invest in startups involved in the NEM ecosystem. Venture Capital they will then be able to participate in the initial offers of digital assets on the VNX platform, achieving optimal liquidity. While NEM cryptocurrency (XEM) will be offered as one of the currencies on VNX. One of VNX's key strategies will be to provide customers with a high level of security, reliability and usability, which will allow them to gain advantage over other platforms.
The solutions proposed by VNX seem to sound convincing, making real improvements to the VC sector. The company is all the more credible that it has been recognized as one of the key financial infrastructures in Luxembourg and is also a member of Luxembourgish House of Financial Technology (LHoFT). VNX has also managed to develop a lasting partnership with key industry institutions, so its activities - current and planned - deserve attention.
