Baroness Michelle Mone and Doug Barrowman launched EQUI, a new investment platform built on the ethereum blockchain. The platform runs on the EQUItoken and aims to reshape venture capital by letting o
Baroness Michelle Mone and Doug Barrowman launched EQUI, a new investment platform built on the ethereum blockchain. The platform runs on the EQUItoken and aims to reshape venture capital by letting ordinary investors fund technology companies and ventures in real-world assets.
Mone and Barrowman say EQUI breaks open a sector controlled by institutions and wealthy individuals. Barrowman, who has spent 30 years identifying winning investments, told MiningPool the platform would "disrupt the conventional venture capital industry, letting everyday investors and the crypto community to get involved in this space."
The pair chose their focus after Mone completed an independent government review in 2016 examining how to encourage startups in disadvantaged communities across the U.K. She visited technology hubs and asked founders what held them back. Two obstacles emerged above all others: access to capital and mentorship.
"The number one barrier was funding and the second barrier was mentors," Mone explained to MiningPool. She was drawn to Barrowman's proposal for two reasons. EQUI would surround each business with an experienced team, including Mone and Barrowman themselves offering guidance and financial backing. More than that, it would open investment to people shut out of venture capital deals.
"The other aspect is that people like my mum and dad, ordinary people who never ever get a chance to invest in projects like this because it's normally the institutions or the venture capitalists, now they are able to get involved as well."
The platform will showcase hand-picked companies pursuing technological advances and early-stage ventures with significant market potential. According to EQUI's white paper, "Over time, a meaningful allocation of the investment portfolio will be deployed into ventures that have scalable ideas through utilising blockchain technology."
Investors in EQUItoken projects receive 70 percent of the capital gains from their stakes. They can diversify across multiple projects or select specific ones, or hold tokens without investing. Investors who hold tokens for at least three months receive five percent additional tokens through EQUI's EQUIcredits loyalty program.
Investors can trade tokens, though Barrowman emphasizes that EQUItoken differs from other ICOs through what he calls real utility value tied to the underlying investments. Most token launches rest on hype alone, he argues.
"With EQUI it marries real-world assets with digital space, so people can actually look at the value of their token and correlate the value of why the currency prices rise, off the back of the fact that we have got a good investment showcase transparently on the platform," Barrowman said. "That to me is a good thing because a lot of ICOs have just been launched. I think it's good that there is a shakedown and I think it's good that in due course there will be regulation of this sector and it's all part of the industry growing up."
The duo have launched a second major venture together. In September, they launched what they say was the first bitcoin-priced property development in Dubai, a £250 million project that Mone describes as a runaway success.
"We have already sold one tower out in conventional sales and bitcoin sales and we were the first to do it," she said. "It was Doug's idea and it works," adding with a laugh that more projects await. "He keeps saying this'll be the last one, but I know it's never going to be the last one."
The ICO arrives amid turbulent conditions in crypto markets. Bitcoin traded below $7,000 this week, marking its lowest price in two and a half months. Barrowman remains unfazed by the volatility.
"I still think bitcoin will hit at least $60,000 by this time next year. I can see it hitting $100,000 at some point in 2019 and I can see it hitting $500,000 a coin in three to five years," he said. "It's here to stay; it is the gold standard and I don't think you've heard the end of bitcoin by any stretch of the imagination."
The EQUI pre-sale runs March 1-8 with a $100,000 minimum and includes 25 percent bonus tokens. The main ICO opens March 8-31 with a $100 minimum investment. EQUI will issue 250 million tokens total: 65 percent through the pre-sale and ICO; 12 percent to founders; 15 percent to the team over two years in quarterly distributions; six percent to advisors over two years; and two percent for bounty rewards. If tokens remain unsold, 50 percent go to ICO participants on a pro-rata basis and 50 percent to EQUI for future investments.
