What is The Elephant Platform?
The Elephant Platform is a tokenized platform in the private secondary market.
It is a bridge between the secondary market investment world and the Blockchain space that allows investors to diversify their portfolio by getting access to tokens linked to and backed by real assets, such as shares of pre-IPO companies (Target Companies) and acts as a gateway for crypto holders to invest in real-world primary assets. At the same time, The Elephant Platform enables private share owners and investors to unlock the value of these assets by creating and selling their equity tokens. The Platform enhances liquidity and transparency of assets, as well as minimizes transaction costs.
The Platform is already active, though not in the tokenized model, offering shares of popular tech companies such as Didi, DJI, Gett, Palantir Technologies, IronSource, OFO and others, which were listed on the Platform by their shareholders. The mentioned companies are late-stage and at the pre-IPO stage and meet the qualification criteria of the Platform. Performing a secondary transaction for purchase of shares is subject to reaching an agreed price and subject to further procedures that govern shares of a private company, such as right of first refusal, corporate approvals etc.
The Elephant Platform seeks to create a scenario that benefits all participants via the secondary transactions it facilitates; investors gain access to previously inaccessible shares of Target Companies while shareholders in these Target Companies gain access to liquidity prior to an exit or an IPO, especially “small” investors and “small” shareholders who lack the resources and/or ability of putting together a secondary market transaction on their own.
Such liquidity is seen favorably by the Target Companies, as these transactions validate the benefits to the employees from such options/shares and can be used during negotiation of employee compensation and in retention of human resources.
In addition, such transactions replace long awaiting shareholders with fresh investors that are coming in at a pre-IPO investment price and are looking to make a profit at the IPO/Exit of the Target Company.
Through our innovative working model, we also condense the sale process, from a number of transactions between “small” shareholders and a number of “small” investors into one process. Accordingly, the Target Company’s management and shareholders need to deal with only one transfer process. This significantly cuts down the time, efforts and costs of the purchase process. All this happens without compromising the confidentially of the Target Company’s internal information.
The Platform does a lot more than bringing the players in the secondary market together. It also manages the process of share transfers (including the right of first refusal and approval of the board of directors, if needed), assists with documentation, administration and the payment processing. In addition, the Platform provides backup and support throughout the entire process of the transaction.
Now that we have established our Platform as an arena for transacting the sale of shares of late-stage and pre-IPO shares, we are transforming it into a tokenized platform that is connected to the blockchain technology.
Once we connect our innovative work models with the blockchain technology (initially through Ethereum) and using our legal and technical infrastructures, we can issue a new type of token we call the Dedicated Token. We achieve this by formally linking traditional contracts with Ethereum smart contracts through mutual reference and code correspondence. Once these tokens are created, anyone who is an accredited investor can invest in shares of leading late-stage and pre-IPO companies (and other investment opportunities that will be available on our Platform) and verify their holdings through smart contracts on the public ledger.
The result is a secondary market for real world, technologically enhanced equivalents to shares – equity tokens – that aim to be as liquid as cryptocurrencies.
We join the best of two worlds: by joining the platform and bringing their fiat currency on-chain, traditional investors gain access to and join the crypto/blockchain space. At the same time, The Elephant Platform also functions as a powerful mechanism for onboarding shares of off-chain companies currently held by private shareholders to the crypto economy and enabling the qualifying members of the cryptocurrency community to invest in equity-backed tokens.
Why “The Elephant”?
We chose to name our Platform “The Elephant” because the elephant is characterized as an intelligent animal. Given the absence of established trading markets for these interests, the transfer of interests in private equity can be more complex, time consuming and labor-intensive.
By its nature, the private equity asset class is illiquid, intended to be a long-term investment for buy-and-hold investors.
Accordingly, investing in the secondary market requires intelligent investment decision making and prudent process.
In addition, as the Elephant may not be the king of the animal world, it is surely a member of the royal family. Likewise, the secondary market, may not compete with the public market but it surely has become a major and vital member (and increasing in importance) of the corporate ecosystem.
The Elephant platform has received rave reviews, Red Herring, a leading online technology daily, named the platform among the top 100 innovative companies in Europe that offer direct, efficient and convenient processes that link shareholders and investors. The online magazine’s open admiration highlighted the tools that The Elephant platform provides as being able to help investors in the murky investment environment while providing a delicate balance between the privacy of shareholders and their information, and transparency. “This”, the daily tech magazine added, “allows for prudent decision-making when investing.”
In an article published in Globes, Moshit Yaffe, CEO and co-founder of Zirra claimed that “Such a platform is important in a world in which investment decisions in private companies are still too dependent on rumors or skewed information, rather than on objective, data-driven, thoroughly informative analyses. The platform will also allow for accredited investors to invest in better companies which align better with their portfolio, with the help of up-to-date data, insights, and expert opinions.”
We have chosen to concentrate our efforts on the “small” shareholder, “small” investors and “small” transactions. We chose to do so because we see the social benefit that this strategy can bring with it.
With our Platform, we intend to offer our solution, not only to shareholders, but also to option holders, allowing them to exercise their options and liquidate them quickly and efficiently. While there is an argument over the exact percentage of options that are not exercised by employees, there is no question that many employees who have worked very hard for these options, never exercise them and they expire.
Our strategy supports the democratization of the private equity market, by enabling the small players, mostly employees, to enjoy the financial benefits of their shares, the shares they have worked so hard to get, if and when they choose to do so. With The Elephant Platform, they no longer need to wait for management to decide if, when and under what terms they are willing to or interested in performing a buy-back of shares, to publically list the company or having an exit.
As the Platform expands and using our Token Model, the process should become simpler and quicker, creating increasing value for these shareholders.
Now we are connecting our Dedicated Vehicle Investment Model with the Blockchain technology and offering our Token Model.
Under the Token Model, our platform will consist of the PEC, which is the Platform token and the Dedicated Tokens that will reflect the equity rights of each investor in the SPV holding the shares of the Target Companies.
In order to expand our tokenized Platform into a global leading secondary platform, to allow many more investment opportunities, whether these are shares of additional companies (tech and non-tech) or others, and in order to attract many more investors and grow our investor community, we are conducting an IEO (Initial Exchange Offering). The participants in the IEO will receive PECs (the Private Equity Coin).
The PEC is a security token, and as such will be available only to accredited or qualified investors who hold the PEC Wallet.