US-20260127640-A1 - FUNDRAISING INCUBATOR FOR CORPORATE CAPITALIZATION

US20260127640A1US 20260127640 A1US20260127640 A1US 20260127640A1US-20260127640-A1

Abstract

A computerized system with hardware and specialized software components for developing, executing and administering sale of securities for raising capital by an incubator financing company.

Inventors

Marc R. Deschenaux

Assignees

Marc R. Deschenaux

Dates

Publication Date: 20260507
Application Date: 20251015

Claims (20)

1 . A distributed networked computer system comprising a distributed ledger for performing at least one operation regarding managing funding for a company seeking capital by an incubator financial entity, the system comprising: a plurality of networked nodes in communication through a network, wherein each networked node comprises a distributed ledger technology (DLT) platform on which one or more smart contracts and one or more private data sharing channels are implemented, wherein a first networked node is associated with the company seeking capital; a second networked node is associated with the incubator financial entity; and one or more third networked nodes associated with one or more subscribers; one or more processors and a computer readable storage medium having instructions embodied therewith, which when operated by the one or more processors, cause the one or more processors to: generate, based on a funding event, a first message related to an initial subscriber offering to fund a business; send the first message to the one or more third networked nodes associated with the one or more subscribers; receive, from the one or more third networked nodes, an expression of interest for one or more investment shares of the company seeking capital from the one or more subscribers; determine a first initial public offering of investment shares based in part on the expression of interest received from the one or more subscribers via the one or more third networked nodes; generate a second message associated with establishing the incubator financial entity to manage the first initial public offering; receive bids to purchase funding tokens for shares of the incubator financial entity via the one or more third networked nodes from the one or more subscribers in response to the second message; record bids for the funding tokens and respective allocated tokens to the distributed ledger; generate, based on the first initial public offering, a third message related to the first initial public offering; send the third message to one or more networked nodes associated with one or more owners of the funding tokens; wherein the message comprises informing the one or more owners that a pro rata share of the raised funds is payable after the initial public offering; generate one or more smart contracts accessible to one or more of the plurality of networked nodes, wherein the smart contract comprises terms comprising a payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the payout triggering event is met, wherein the smart contract generates a payout to the one or more owners automatically when the payout event is triggered, and record execution of the smart contract to the distributed ledger; and execute the smart contract through the terms of the smart contract to generate payout to the one or more owners automatically when the payout triggering event is met.
2 . The distributed networked computer system of claim 1 wherein the payout triggering event is completion of the initial public offering for the company seeking capital.
3 . The distributed networked computer system of claim 1 wherein the payout is a pro rata share of the raised funds of the initial public offering.
4 . The distributed networked computer system of claim 1 wherein the funding event comprises establishment of the incubator financial entity for managing the initial public offering for the company seeking capital.
5 . The distributed networked computer system of claim 1 wherein the funding event comprises establishment of a special purpose acquisition company to identify and acquire the company seeking capital.
6 . The distributed networked computer system of claim 1 wherein the funding event comprises establishment of a special purpose vehicle company to hold assets of the company seeking capital.
7 . The distributed networked computer system of claim 6 wherein the company seeking capital retains an equity position in the special purpose vehicle company.
8 . A method of performing at least one operation regarding managing funding of a company seeking capital by an incubator financial entity, the method comprising: providing a plurality of networked nodes each comprising a DLT platform on which one or more smart contracts and one or more private data sharing channels are implemented; wherein a first networked node is associated with the company seeking capital; a second networked node is associated with the incubator financial entity; and one or more third networked nodes is associated with one or more subscribers; providing one or more processors and a computer readable storage medium having instructions embodied therewith, which when operated by the one or more processors, cause the one or more processors to: generate, based on a funding event, a first message related to an initial subscriber offering to fund the company seeking capital; send the first message to the one or more third networked nodes associated with one or more subscribers; receive, from the one or more third networked nodes, an expression of interest for one or more investment shares of the company seeking capital from the one or more subscribers; determine a first initial public offering of investment shares based in part on the expression of interest received from the one or more subscribers via the one or more third networked nodes; generate a second message associated with establishing the incubator financial entity to manage the first initial public offering; receive bids to purchase funding tokens for shares of the incubator financial entity via the one or more third networked nodes from the one or more subscribers in response to the second message; record bids for the funding tokens and respective allocated tokens to the distributed ledger; generate, based on the first initial public offering, a third message related to the first initial public offering; send the third message to one or more networked nodes associated with one or more owners of the funding tokens; wherein the message comprises informing the one or more owners that a pro rata share of the raised funds is payable after the initial public offering; generate one or more smart contracts accessible to one or more of the plurality of networked nodes, wherein the smart contract comprises terms comprising a payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the payout triggering event is met, wherein the smart contract generates a payout to the one or more owners automatically when the payout event is triggered, and record execution of the smart contract to the distributed ledger; and execute the smart contract through the terms of the smart contract to generate payout to the one or more owners automatically when the payout triggering event is met.
9 . The method of claim 8 wherein the payout triggering event is completion of the initial public offering for the company seeking capital.
10 . The method of claim 8 wherein the payout is a pro rata share of the raised funds of the initial public offering.
11 . The method of claim 8 wherein the funding event comprises establishment of the incubator financial entity for managing the initial public offering for the company seeking capital.
12 . The method of claim 8 wherein the funding event comprises establishment of a special purpose acquisition company to identify and acquire a company seeking capital.
13 . The method of claim 8 wherein the funding event comprises establishment of a special purpose vehicle company to hold assets of the company seeking capital.
14 . The method of claim 13 wherein the company seeking capital retains an equity position in the special purpose vehicle company.
15 . A non-transitory computer readable storage medium having program instructions embodied therewith; wherein the program instructions cause a distributed networked computer system for managing funding of a company seeking capital by an incubator financial entity, the distributed network computer system comprising a distributed ledger, a plurality of networked nodes in communication through a network, wherein each networked node comprises a distributed ledger technology (DLT) platform on which one or more smart contracts and one or more private data sharing channels are implemented, and one or more processors configured to execute the program instructions to: receive notification of a funding event; generate, based on the funding event, a message related to an initial subscriber offering to fund the company seeking capital; send the message to one or more networked nodes associated with one or more subscribers of the DLT platform; receive, from the one or more networked nodes, expression of interest for one or more shares of the company seeking capital from the one or more subscribers; determine, by a central processor, an offering of investment shares based in part on expression of interest received from the one or more subscribers via the one or more networked nodes; generate a message associated with establishing the incubator financial entity to manage an initial public offering to fund the company seeking capital; receive bids to purchase funding tokens for shares of the incubator company via the one or more networked nodes from the one or more subscribers in response to the message; record bids for the funding tokens and respective allocated tokens determined by a central processor to the distributed ledger, wherein the distributed ledger is accessible by the one or more networked nodes; receive from the second processor a first initial public offering for the company; generate, based on the first initial public offering event, a message related to the first initial public offering; send the message to one or more networked nodes associated with one or more owners of the funding tokens; wherein the message comprises informing the one or more owners that a pro rata share of the raised funds is payable after the initial public offering; generate a smart contract accessible to the one or more networked nodes, wherein the smart contract comprises a payout triggering event; and a plurality of predetermined electronic actions for generating a smart contract output when the payout triggering event is met, wherein the smart contract generates a payout to the one or more owners automatically when the payout event is triggered, and record execution of the smart contract to the distributed ledger.
16 . The non-transitory computer readable storage medium of claim 15 wherein the payout triggering event is completion of the initial public offering for the company seeking capital.
17 . The non-transitory computer readable storage medium of claim 15 wherein the payout is a pro rata share of the proceeds of the initial public offering.
18 . The non-transitory computer readable storage medium of claim 15 wherein the funding event comprises establishment of an incubator financial entity for managing an initial public offering for the company seeking capital.
19 . The non-transitory computer readable storage medium of claim 15 wherein the funding event comprises establishment of a special purpose acquisition company to identify and acquire the company seeking capital.
20 . The non-transitory computer readable storage medium of claim 15 wherein the funding event comprises establishment of a special purpose vehicle company comprising the company seeking capital.

Description

CROSS REFERENCE TO RELATED APPLICATION This application is a continuation of U.S. application Ser. No. 17/938,420, filed Oct. 6, 2022, which claims the benefit of U.S. Provisional Application Ser. No. 63/254,017 filed Oct. 8, 2021, the contents of which are incorporated herein in their entirety. FIELD OF THE DISCLOSURE Systems and methods are disclosed which generally relate to raising capital. BACKGROUND It is often difficult to raise the budget of a large business transaction for growing a company through a financing business transaction such as an initial public offering (IPO), a merger, an acquisition or a securities private placement. In addition to significant cost, it monopolizes a significant portion of the company's resources and the management's attention. That is why it is not uncommon that during the capitalization (e.g. IPO) process, the performance of the company is heavily impacted. Hence, there may be an additional need for funding, if only to offset the poor sales performance due to the effort of the capitalization or IPO process. The risk linked to a transaction financing investment is directly linked to the probability of the transaction being successful. Therefore, as a rule of thumb, we can say that the transaction financing investment risk is directly linked to the quality of the agreements binding the parties to the transaction and to these parties'willingness to execute the transaction properly. Financing business expansion transactions are guided by considerations of two different entities, investors and entrepreneurs. The investor's viewpoint is how to invest for a short period of time and make a significant profit. The entrepreneur's or the company's point of view is how to finance a large transaction and get rid of the investors immediately afterwards. More often than not, when acquiring or merging, it is possible to use the cash of the target company to pay off investors. Thus, transaction financing answers both these needs allowing the investor to make a quick profit in case of successful transaction. However, depletion of cash or adding debt load to the new company to finance the acquisition can hinder growth of the business after the financial transaction. In IPOs, there is no cash to pay off investors, so the investors cannot exit quickly. On the other hand, it is appropriate to differentiate, in the total cost of an IPO or other capitalization, the costs that must be borne by the future company issuing shares before trading the IPO process, called “Upfront” or “Pre-Cash” (fees of lawyers, etc.), from those which will be supported at the end of the IPO by the raised funds, “Post-Cash” (commissions of Brokers or Investment Banks, etc.). Financing could be structured as loans or bond issues. However, under many jurisdictions, loans are limited to a certain interest rate percentage, called the usury rate, generally less or far less than 25%. For example in Switzerland, the federal law limits this usury rate at 15% and makes any interest rate set above that limit unlawful and thus, not payable. Bond issues may be limited by market rates and bond ratings assigned by market assessment firms that assign risk valuations to the issue based on perceived success of the transaction to be funded. Further, loans and bonds are typically structured to provide payments to investors at defined payment schedules. Often, investors want a higher return on their investment, because any transaction financing investment represents a significant degree of risk at least from a market perception standpoint. They may also wish to recover their investment faster than loans or bonds. Therefore, it is desirable to develop new systems and methods for raising capital. SUMMARY A first aspect provides a distributed networked computer system for managing funding for a company seeking capital, the distributed network computer system comprising a distributed ledger; a non-transitory computer readable storage medium having program instructions embodied therewith; and one or more processors configured to execute the program instructions to cause the computing system to receive, from a first processor, a funding event; generate, based on the funding event, a message related to an initial subscriber offering to fund the business; send the message to one or more networked nodes associated with one or more subscribers of the platform; receive, from the one or more networked nodes, expression of interest for one or more shares of the company seeking capital from the one or more subscribers; determine, by a central processor, an offering of investment shares based in part on expression of interest received from the one or more subscribers via the one or more networked nodes; generate a message associated with establishing an incubator company to manage an initial public offering to fund the company seeking capital; receive bids to purchase funding tokens for shares of the incubator company via the one or more networked