As of February 6th 2019, Harbor has upgraded its platform to v2.0. Harbor CEO Josh Stein says the new features were a result of interaction with prospective Harbor clients. V2.0 was especially designed to help startups wishing to raise private capital and sports franchises wishing to tokenize ownership.
Harbor Platform 2.0 Explained
Harbor’s latest update— Harbor Platform 2.0— has arrived.
The platform aims to tokenize traditional securities by handling the compliant fundraising, investor management, and liquidity with Distributed Ledger Technology (DLT). The platform enables enterprises to raise private capital in the groundbreaking manner offered through security tokens.
The new update includes an issuer-branded investor portal and a dashboard optimized for issuer-use. It also entails a Trusted Parties feature which can allow issuers to control certain conditions specific to their asset to ensure regulatory compliance.
Harbor’s Trusted Parties admin view where issuers can view their cap table and controls in real time
According to Harbor CEO Josh Stein, the new updates were driven to enhance the ways startups can raise capital:
“Startups want new ways to raise capital directly from investors, not only through intermediaries. They want to open up fundraising to a broader network including customers, partners, and fans who are key to their success, while still being in control of their cap table… Harbor Platform 2.0 is a turnkey solution for tokenizing private company equity that enables startups to open up fundraising directly to a broader group of investors and create innovative equity programs.”
According to the Harbor team, Harbor Platform 2.0 features a few use case examples based on interaction with prospective clients.
The first includes professional sports franchises who sell fractional ownership to would-be minority owners— as previously discussed more in-depth by Stein himself. Under such conditions, unique benefits which are unavailable anywhere else can be added to such ownership, resulting in the asset’s increased value at little cost to the majority owner(s).
The second includes startups with high-growth potential but significant operating capital requirements. Here, those startups can tokenize private equity in a simple and compliant manner, resulting in new funding for business development. At the same time, startups can establish equity deals that incentivize both early customers and key partners.
The third involves startups with a built brand and revenue generation who seek alternative methods of fundraising. Startups with a successful product or service can leverage their success for additional fundraising directly from investors with fewer conditions and associated expenses.
How Harbor has Become a Leader of the Security Token Industry
The token features a centralized compliance protocol to transparently demonstrate its accordance with applicable laws. Harbor focuses on the tokenization of assets which are unambiguously securities. They therefore must comply with all appropriate laws and regulations.
Proving such compliance is the tricky part, which is why Harbor centralizes compliance, yet decentralizes everything else.
Their technology is not the only instance of Harbor to make recent headlines, however.
Meet Tim. Tim is a co-founder of The Tokenist. Originally from Kalamazoo, Michigan, Tim is a mechanical engineer by training and has been investing his whole life. He started his career with GE in engineering and operations management where he held various leadership roles before leaving to pursue an MBA (he is a proud former co-chair of the Milton Friedman Group at Chicago Booth). After business school, Tim spent several years with Baird Capital where he made private equity investments in consumer and industrial companies. He left Baird to found Protective Technologies Capital in 2018, where he continues to make private equity investments in family businesses looking for help with succession planning. Tim lives in Chicago, where he enjoys watching Michigan football and basketball and traveling with his wife Kristen. Like Sia, he also likes telling jokes. However, his wife adamantly insists that he not share his “dad jokes” publicly so he reluctantly sticks to writing about finance and technology.