Imagine a global marketplace where you could pitch, meet compliance standards and sign up new investors within hours, rather than prepping all kinds of paperwork and holding meetings, playing email ping-pong or holding repeat conference calls stretching across weeks or months. Yes, someone else just imagined that dazzlingly simple, yet profoundly modern iteration of the decades old AIM stock exchange.
Here’s the press release, get on your starting blocks insurtech entrepreneurs:
The founders of Appital are building a new financial technology platform to unlock liquidity in global capital markets, enable complex trades to be completed in hours rather than weeks and provide all participants with real-time transparency as deals progress.
Appital’s platform will open-up deal flow beyond the traditional, established financial players to unlock liquidity held by millions’ of potential investors and provide an easy-to-use, efficient system that also manages all regulatory requirements.
Buying and selling in the equity and debt capital market is currently a slow and expensive business.The seller normally engages an investment bank or broker, who can only reach a limited audience of potential buyers. All deal communication is by phone and email. Deals can take weeks and fees can run to several million dollars.
Appital – how it works
The seller lists their equity on Appital. Appital alerts potential buyers, whilst adhering to regulatory frameworks and user preferences. Appital takes care of compliance, Know Your Customer (KYC) and all other regulatory processes.
The transaction is then completed automatically on the platform. The entire time to transaction is hours rather than weeks and completed without an expensive broker or investment banker.
Appital – founders and backers
Appital was co-founded mid-2018 by CEO Mark Badyra, and CTO Pete Correia. Badyra worked in capital markets at Bank of America Merrill Lynch and at UBS, whilst Correia was head of technology at Fathom, creating solutions for clients such as Commerzbank, AlixPartners, Access Fintech, Aimia Inc and the GSMA.
Appital has initial primary investment and expertise from Greg Bennett, formerly of Cazenove and former head of capital markets at Fidelity International, who heads Appital’s board of advisors (see full list below).
Mark Badyra, CEO, Appital, says: “Our first product will allow corporate and institutional firms within the debt and equity capital markets to exchange illiquid equity without the need for an investment bank or broker.
“We will automate deal distribution based on investor profiles and interests, the size of their other investments, and so on. This will ensure that the most relevant investors will be notified about the deal immediately, helping accelerate the deal flow, engage the right investors, and sealing a more lucrative deal for sellers. And because it’s all automatic, it will dramatically reduce deal fees, making them more attractive to buyers.”
“Appital customers will benefit from cost savings, greater market access and reach, transparency and the likelihood of increased deal flow and better transaction pricing.”
Appital will generate revenue by taking a commission on each transaction.
Following the completion of its £400,000 equity crowdfunding campaign on Crowdcube, Appital will complete its platform-build; gain FCA approval and launch on the new OpenFin Startup Ecosystem at the end of 2019. OpenFin provides a centralised financial platform which allows for the interconnection of financial applications.
Pete Correia, CTO, Appital, says: “Using the Appital platform, deals will be distributed automatically to a wider audience. Our analysis tools will help them to better understand the risks and rewards, while new automated distribution and approval methods will slash transaction costs, making investment more transparent and more affordable for ordinary people as well as professionals.
“Launching on Openfin, with its 200,000 plus subscribers, also means we can scale the business rapidly across Europe in a matter of months.”
The Appital platform is also designed to be scalable to other asset classes in the investment banking space, including corporate or government bonds.
Appital advisory board
Members of Appital’s advisory board are Greg Bennett, former head of capital markets, Fidelity International; Andy Mead, former head of global applications, Aberdeen Asset Management; Martin Fest, former M&A Director, Barclays; Ian Sutherland, director, Kellian Consulting; Simon Monson, former equity sales, Mizuho and Stephane Carty, former head of trading, Wells Fargo.