Finova Financial Announces The JOBS Crypto Offering (JCO)
(7 months ago)
West Palm Beach, Fla., United States : Finova Financial, a digital financial services provider transforming the future of global banking, announced the creation of a fundraising process known as a JOBS Crypto Offering (JCO) which, when completed, will give investors the opportunity to invest in equity ownership of previously privately-held companies using cryptocurrency.
The JCO is a hybrid of initial coin offering investments (ICOs), which allow companies to raise capital more readily through cryptocurrency investments and an initial public offering of stock.
In a JCO, "tokens" representing ownership of shares of capital stock would be tracked on a distributed ledger or blockchain (Tokens) and would be sold pursuant to a registration statement filed under the Securities Act or a transaction which is exempt from registration under the Securities Act pursuant to Rule 251 under the Securities Act (i.e. Regulation A+).
The JCO is the brainchild of serial fintech entrepreneur, Gregory Keough, who is the current CEO of Finova Financial and former CEO of Mobile Financial Services, a MasterCard and Telefonica Joint Venture for mobile financial services globally.
"I liked the idea of the ICOs when they were first introduced as they looked like an exciting way for startups to raise funds from small investors, but I had concerns about regulatory compliance practices, especially for tokens that are clearly securities," noted Finova CEO, Gregory Keough. "I designed the JCO as a process to open the doors of opportunity for the small investor, allowing them to participate using cryptocurrency in security offerings in compliance with SEC regulations. I envision the Tokens sold in JCOs being listed on an Alternative Trading System, creating a liquid security and providing companies with an alternative to a traditional initial public offering."
"We think the JCO has the potential to have a massive impact on the way startups raise funds, while creating some much-needed regulatory clarity in the crypto-investing space," said Sheel Mohnot, Partner, 500 Startups.