Reimagining going public with Continuous Securities Offerings (CSO)

Reimagining going public with Continuous Securities Offerings (CSO)

Hi, it’s Joris from Fairmint. This post follows the keynote I gave on November 7th, 2019 to introduce Fairmint and Continuous Securities Offerings (CSO).
You can find my talk on Youtube.

Introducing Fairmint, the Continuous Securities Offerings platform.

At Fairmint, we consider the organization as a contract between the founders, the investors (the shareholders), and the stakeholders (employees, users, customers, contractors, society as a whole, etc…).
We strongly believe that in 2019 the capitalization table” (ie cap table) doesn’t reflect the entire organization and we’ve been focusing on the emergence of a “fair table”, where all the organization’s parties mentioned above, can sit.

Momentum.

Capitalism as we know it has been heavily discussed, challenged. Its supporters as well as its main detractors have been very vocal about capitalism, even more lately.

Keynote: Introducing the Continuous Securities Offerings

“Capitalism as we know it is dead” said Marc Benioff, CEO of Salesforce while on tour for his last book “Trailblazer”.
Leo Strine, former chief Justice, Delaware Supreme Court, called for “a fair and sustainable capitalism” and “a fair gainsharing between stakeholders”.
Michael Seibel, charismatic CEO at YCombinator talks about “this new view that is starting to take hold. A view where employees, customers, and society are seen as company stakeholders as well”.
And even, capitalists such as Ray Dalio think the “world has gone mad and the system is broken


Capitalism is considered as the shareholder-centric model par excellence — but it’s a model where opportunities were traditionally reserved for insiders.

Our generation aspires to a more sustainable model and still believes strongly in capitalism. In a recent post by Nicolas Colin, the current version of capitalism, post 2008 crisis, sees tech CEOs who shaped the last economical decade deciding to focus more on the consumers, the users, the employees more generally as their stakeholders. They decided, indeed, to deliver an exceptional user experience to them rather than only delivering to shareholders more value and dividends to shareholders.

Clearly as a strong believer in capitalism as a whole system, I strongly believe that we should give it a chance to transform into as it can mute to a stakeholder-centric model that perfectly adapts to this new deal of a fair table. I don’t believe in a model that relies on employee ownership (you can read an interesting post from Steve Blank in Harvard Business Review, here) nor on crowdfunding platforms where most people don’t know about shares, SAFEs, convertible notes, donations, …

Instead, I strongly believe in a model that relies on access, access to the fair table, access to this new table that goes beyond cap table, where all stakeholders can finally participate — equitably.

Capitalization table + fair table.

The shareholder-centric model as we know it, relies on one tool, equity.

Equity defines the entire ownership and distributes the governance rights of any company. To invent a stakeholder-centric model and to offer capitalism a new chance to adapt, we decided to craft a new tool. This tool exists to create more sustainable balance than the cap table. It’s a tool that would allow the entire organization to be more fair.

We’ve interviewed hundreds of founders, stakeholders, investors mostly in America and in Europe.

Their expectations are crystal clear:

  • Founders want FINANCING,
  • Stakeholders want ACCESS,
  • Investors want LIQUIDITY.

After months of research in the maths field, the software field, the legal and regulation field, let me introduce a completely novel way for private companies to get financing — let me introduce the “Continuous Securities Offerings”

What is a Continuous Securities Offerings (CSO)?

A Continuous Securities Offering (CSO) is :

  • A novel way to get financing for founders,
  • an equitable, early or not, participation for stakeholders,
  • and it’s continuous, meaning you can join and leave the table easily. Investors get their liquidity request.

We build the mechanism they want!

Reimagining going public.

Reimagining going public is what we’ve been working on with Thibauld Favre for months, years now. We found once again a great echo of why it’s so important a few days ago while reading @Nicolas Colin’s latest post.

The momentum is so clear that he suggests renaming his book from “HEDGE: A greater safety net for the Entrepreneurial Age” to “HEDGE: Reinventing capitalism in the Entrepreneurial Age”.

We’re definitely working on the fine-tuning Nicolas discusses, on reinventing capitalism, on reimagining going public.

And it is possible TODAY, because tech makes it possible.

DeFi.

To be more precise, Decentralized Finance makes it possible. Like cloud computing revolutionized IT delivering end users with amazing new experiences, DeFi will revolutionize financing.

The internet turned everyone into publishers, and crypto will turn everyone into investors.
Balaji S. Srinivasan, tweet Oct. 26th, 2019

DeFi is a chance for our generation to counteract inequalities by decentralizing access to wealth. The path will be long, for sure. Such a big challenge will take time! At Fairmint, we’ve started the work! And we did it by building on top of the DeFi stack.

We’ve been building the platform for Continuous Securities Offerings.
We’ve been building Fairmint.

Fairmint.

Fairmint is the platform that enables private companies to run a continuous securities offering (CSO).

To facilitate use and easily engage with communities, users, customers, partners, stakeholders, we wanted the product to be as simple as a push of a button on your organization’s website, an “invest now” button, powered by Fairmint.

We’ve been working hard to build the pillars CSOs can rely on. We’ve designed and built:

Fairmint is the CSO platform for private companies. Visit our website Fairmint.co

If you want more details about Fairmint, about the Continuous Securities Offerings, join our telegram channel,

If you are a founder interested in running a CSO, visit Fairmint.co/Founders


About me.

I am Joris Delanoue, an entrepreneur and angel investor. I have been building from scratch and scaling my companies mostly in Europe, now in the US. I am on a mission to design a model of what an organization could be in #2050. Fairmint Inc., a company I co-founded with Thibauld Favre, is a first step of this long journey.

Twitter: @joris_DLN

Readings.

A new corporate contract for the digital age, Nicolas Colin (2016),
HEDGE: A greater safety net for the Entrepreneurial Age”, Nicolas Colin (2018)
Continuous Organization, Thibauld Favre (2018)
A fair and sustainable capitalism, Leo Strine (2019)
How to Make Startup Stock Options a Better Deal for Employees, Steve Blank (2019)
Trailblazer, Marc Benioff (2019)
What is capitalism, why it works so well, and how we can make it better, Nicolas Colin (2019)
The world has gone mad and the system is broken, Ray Dalio (2019)