Foxtrader is a startup that intends to securitize small businesses by allowing them to launch security tokens which will be tradable on the Foxtrader platform.
Allowing any business that is not on the stock market to issue shares to their community and IPO.
The Problem we intend to solve:
- Although there are 32.5 million businesses in America, there are only 12,000 public companies on the American Stock Exchanges.
- Yes, many small businesses do fail, which makes them a speculative asset, however, if we target the top 10% of businesses and allow them to go public, we should have 3.25 Million Businesses public in America.
- This unlocks trillions of dollars in value for both business owners and investors.
- The stock market hasn’t been disrupted in decades, this needs to change!
In order to achieve this vision, we have created a simple 4 step plan.
PART ONE: Build a platform that has two types of users
- Investors – People looking to invest in businesses that have not yet IPO’d.
- Investees – People looking to IPO their businesses.
PART TWO: Allow Investees to IPO in a few simple steps:
- Perform Identity Verification
- Connect their bank account to our platform via secure API
- Our Algorithm will judge a fair value of their business based on several factors
- Investee’s will IPO notifying their community to invest
- Once Investee’s go public, Foxtrader will automatically create a fractionalized investment token for the Investee under their desired $ticker symbol.
PART THREE: Allow Investors to Buy/Sell & Trade $tickers pegged to Investee’s small businesses.
- As the value of the Investee’s business grows, the value of each token will grow.
PART FOUR: Ensure Safety:
- As our platform grows with investors & investees, we plan to create an environment based on honesty & integrity. We plan to take all the initiatives to prevent fraud and illegal schemes from occurring on our platform. Down in the FAQs is where we consider some questions we want to answer for ourselves.
Questions we need to answer:
- How will we get the first investors onto the platform?
- How will we get the first investees onto the platform?
- How will we ensure investors and investees are trustworthy?
- What attributes will an investor’s profile have?
- What attributes will an investee’s profile have?
- Which sources of incomes will people be able to IPO?
- Which identity verification will be able to satisfy a user’s trustworthiness?
- Will this identification verification API work internationally?
- How will user connect the bank account?
- Which factors will be taken into the calculation of the valuation of the business?
- How will often bank account verify the valuation of the business
- How will Investee inform their community to invest?
- How long will it take for the token to be created? (Instant? 1 Business Day? 2 Business Days?).
- Which chain will the tokens be on?
- Will the token give dividends back?
- What settings of the token will the user specify? Price? # of tokens?
- How secure will these tokens be?
- Which attributes will the $token page have? What will it look like?
- How fast will buy/sell orders execute?
- Is this legal in most states or countries? What legality issues will come up.
- Will we target micro businesses & startups first?
- Will we target larger (top 10%) of American businesses first?
- Will we target businesses that are old or new?
Questions Related to SEC:
- Do Foxtrader need to register with the SEC as a Self Regulated Organization (SRO)?
- Do Foxtrader need to submit applications for each IPO to the SEC?
- What is the process of registering for a Self Regulated Organization?
- Does Foxtrader need to register as an exchange under Article 6?
- Where to submit SEC forms? How long does processing take?