The continued movement of talent into crypto sees ex-Royal Bank of Scotland director Richard Chambers join crypto-startup Investx. Chambers will join as Chief Operating Officer, bringing over 14 years of corporate banking experience to the role.
Investx is a blockchain-based platform to allow established SMEs to access new sources of equity-secured financing. It will allow businesses to access capital without having to take on significant amounts of unsecured debt. The platform is akin to crowdfunding, tokenising investments to bring liquidity to funds that are usually locked up for years in the traditional markets of Venture Capital and Private Equity.
Chambers has secured hundreds of millions of pounds of funding during his tenure at investment banks supporting private equity backed businesses. At Royal Bank of Scotland’s Corporate Transactions Team, he focussed on raising event-driven debt packages for SME customers, and was able to see first-hand the challenges they face.
Chambers explains: “This is a unique opportunity to build a business with the capability to match up established SMEs seeking funds with investors who want to invest in SMEs – a market that currently is not open. Having come from a traditional banking background, I have witnessed first-hand the large proportion of SMEs which struggle to access funding easily and cost effectively. In many cases, debt is not the most appropriate product as monthly capital repayments and interest charges eat into cash flow.
Through Investx, we will provide equity investment into smaller businesses in a cost effective manner by using blockchain technology, and for the first time, we will build liquidity into the investments by creating a secondary market which means investors are not locked in for years. This has the potential to revolutionise how SMEs access capital, and will align investors and businesses with the success of the business.
Peter Edgar, CEO of Investx concludes:
Investx fills a clear gap in the marketplace for established SMEs which are seeking additional capital but are typically under-supported by traditional lenders. Richard’s vast experience will ensure that demand is high amongst SMEs, and we are proud to have recruited someone of his calibre.