Nivaura is a blockchain startup that intends to cut out all the complexities of the traditional capital market. If its goal is achieved, there will be no need for intermediaries who are currently gaining massively from the capital market. Whether it is the web depositors who hold on to stock certificates or it is the investment banks that hold on to cash, Nivaura intends to overtake them all. Nivaura’s blockchain technology will allow investors to contact each other directly.
Nivaura Gets $20 Million In Seed Funding Round Led By The London Stock Exchange
For the past three years, Nivaura has been making notable appearances in the press. The company, after persistent efforts, has finally gotten the attention of some of the largest players in the financial industry. Nivaura announced that it has gotten a $20 million seed funding round. The sixth-largest stock exchange in the world, the London Stock Exchange, took the lead in the funding round. The institution has proven that it believes in Nivaura’s vision to reinvent the capital market. This would change the way companies and investors connect. The seed funding round which closed on Tuesday was announced yesterday.
Bitcoin (BTC) Price Today – BTC / USD
The blockchain-based platform is also going to reduce the time required for settling loans, bonds, and equities by up to 60%. This would benefit not just the companies but the investors as well. The CEO of the company Avtar Sehra said:
“In the traditional world, you have this complex and paid chain of custody that can be eliminated using a blockchain,” says Sehra, who previously worked as an astrophysicist and applies his experience conducting scientific experiments to simplifying capital markets. “But also the cost of custody potentially goes down for the investors as well.”
Apart from the London Stock Exchange, other major players like Santander bank, Digital Currency Group, and others joined the funding round. This money would go a long way in promoting the vision of the company which currently has about 30 employees across England. The CEO said that he is making plans to expand to the United States and Asia soon. The company will hire new employees and deploy Nivaura Connect, a platform that will help scale the technology. Some of the funds will also go into research and development. Two new members will be added to the company’s board of directors one of them is a former executive at HSBC, Spencer Lake while the other is the CEO of London Stock Exchange, Nikhil Rathi.
Nivaura generates funds by charging for white label services. This allows exchanges and investment banks to issue financial instruments using the platform. Even if the company is a startup, it has already been able to generate over $1 million in revenue between April and now. This is commendable since many startups that were founded the same time with Nivaura haven’t started generating profit. With this support from major players, the company will be able to achieve and even surpass its goals.
Do you think the technology by Nivaura can effectively eliminate intermediaries in the capital market or is the startup being over ambitious? Share your thoughts in the comment section.