A 2Tokens and partners’ use case; NGC offers a new method of investing in high-tech ventures building for sustainability
Next Generation Capital (NGC) has selected the Dusk Network blockchain for their tokenization efforts and Security Token infrastructure. This partnership connects Dusk with a group of diverse financial actors, all looking to innovate the financial market. Secondly, it drives network adoption as the NGC’s use case is scalable and could lead to recurring usage of the Dusk Network blockchain for use cases in this sector. By embarking on another 2Tokens use-case initiative (TWO), we strengthen the position of Dusk Network technology as the go-to infrastructure for tokenization in the Eurozone.
What is NGC?
NGC is creating a new way of funding via a so-called Vertical®. Investing in a Vertical® means investing in a theme-based basket of ventures, offered as a bundled investment proposition on the primary market. Present-day, it can be cumbersome to connect ventures and capital as the investing landscape is fragmented and due diligence can be a costly process. The advantage of such a Vertical® lies in the fact that an optimal, aligned process is created to help ventures start, grow and scale. At the same time, the thematic deployments allow institutional investors to invest in smaller companies via bundles like NGC, significantly reducing the cost of due diligence.
- A Venture Vertical® typically consists of 30 ventures;
- The total value of capital that needs to be raised for the Venture Vertical® is EUR 22-25M;
- An investor can only invest in the Vertical® of ventures in the primary market;
- Every venture is listed individually on the secondary market (separate ISIN).
NGC & 2Tokens
Next Generation Capital is one of three 2Tokens Use Cases, and powered by NxChange, one of three Dutch alternative stock exchanges. All investment propositions part of NGC use standardised documentation, standardised issuing practices and comply with a standardised framework of investor requirements. The tokens are categorised according to the International Token Standardization Association (ITSA).
Vertical® funding on Dusk Network
Vertical® funding uses the Dusk Network blockchain technology to benefit from the most innovative technical infrastructure. “The Security Tokens of the Verticals® follow the economics of a publicly listed Security. A key technological feature of such a token is the ability to govern permissions and various whitelists, and that’s exactly why we opted for the Dusk Network infrastructure”, thus Marleen Evertsz, chief executive officer of Nxchange.
Upon the successful raise of a NGC Vertical®, Dusk Network technology will be used for:
- Automate fundraising and asset distribution via smart contracts;
- Asset governance via permission-management and whitelists;
- Vesting / milestone financing;
- Lifecycle applications to manage voting and corporate actions (e.g. dividend payments)
- Compliance with existing (financial) frameworks (MIFID II, SRD2, GDPR), most notably tradability on a regulated securities Exchange.
In other words, every asset that is fundraised and added to a theme-based basket of ventures, will initiate the deployment of a smart contract on Dusk Network to manage the securities and milestone funding. In addition, various services such as voting and dividends are to be handled on-chain. Finally, we’ll be exploring the add-on of virtual agents that allow for the creation of basket-tracker tokens within predefined restrictions which would in turn increase liquidity for the underlying ventures.
NGC partners and ecosystem
NGC previously partnered with 2Tokens, Yes!Delft, HighTechXl, Rabobank, ABN Amro, EuroClear, The Share Council, CMS tax/law, Ledger Leopard, Rotterdam School of Management (RSM), NxChange and now Dusk Network.
About Next Generation Capital
Next Generation Capital is the result of a flourishing partnership between various innovative and progressive parties that jointly offer the solution for the social challenges that our generation is trying to tackle, in a smart, sustainable and tokenized way.
Nxchange is a regulated Dutch stock exchange (Regulated Market and MTF), that is headquartered along the Herengracht in Amsterdam. Founded in 2015, it is one of three stock exchanges operating in the Netherlands. According to CEO Marleen Evertsz, Nxchange is a next generation stock exchange that focuses on developing innovative finance solutions.
About Dusk Network
Dusk Network is a privacy blockchain for financial applications. You can use Dusk Network to create zero-knowledge smart contracts that control digital assets and securities.