FinClear launches new unlisted securities register

Australian fintech company, FinClear, has launched its new digital facility to host unlisted securities called FCX, and announced the appointment of Dean Jagger as Head of FCX.

FCX uses distributed ledger technology (DLT) to house FinClear’s unlisted shares on the digital register, with plans to add capital raising tools later this year and to open as a fully licensed liquidity venue with same-day settlement in 2023.

David Ferrall, the CEO of FinClear, said this venture shows the Australian market is evolving.

“This is a response to massive demand and need in this market,” he said.

“Growing companies find it difficult to raise capital, and equally, institutions and VCs find it difficult to invest in growing companies because of the way unlisted capital has to be structured today.

“FCX solves for all of that, as well as reducing pressure on young companies to list too early.”

Jagger also brings experience with domains and registries to the role and will bring FCX to market, after previously holding positions at Automic Group and Link Market Services.

“Having managed share registries in every capacity over my career I see FCX as a step change in the way companies issue, manage and raise capital in this country,” Jagger said.

“We already have a strong pipeline of companies waiting to bring their registries on to FCX before we launch our capital raising tools later this year. And, of course, I’m most excited for the ultimate goal which we will reach next year when we open our unlisted liquidity venue to participants.”

Chris Barter, the founder of FinClear investor King River Capital, said the development and its liquidity potential for unlisted companies will improve the Australian technology sector overall.

“Australia has so much potential as a tech powerhouse, but the market structure does more to hamper it than help,” he said.

“There is no junior bourse for young companies; the VC/PE ecosystem is very fragmented; and Government and regulatory structures around startups and scale-ups make it very difficult for investors to exit when they want to without the company listing or diluting capital.

“FCX addresses all these issues – it could very well become an essential step on the growth journey of successful Australian companies and will be a global first in executing this on blockchain, making FinClear a Web3 pioneer.”