Half of all small businesses fail in the first four years, according to the Bureau of Labor Statistics. For technology startups, that number can range from 70 to 90 percent, depending on the source.

This creates a market where many companies are interested in selling technology that could have real value, but finding a buyer involves using a business-networked law firm that will take a hefty “finders” fee just to get started, with no promise of a sale. One company — Lexit OÜ — is trying to change that model, and in doing so might disrupt the current mergers and acquisitions world as it stands today.

“You just failed, but you have this great technology you created,” said Amir Kaltak (pictured), founder and chief executive officer at Lexit. “We give you access to the world of mergers and acquisitions, which is currently a big boy’s club.”

Kaltak stopped by the set of theCUBE, SiliconANGLE Media’s mobile livestreaming studio, and spoke with host John Furrier (@furrier) at the Polycon18 event in The Bahamas. They discussed the development process for Lexit’s model, how firms would find buyers, and the planned commission structure.

A fully automated solution

It’s taken Lexit two years of development to come up with a viable automated model. The process is to let a company open an account, list the technology asset, pass strict “know-your-customer” vetting, and then receive a value from a professional M&A network. After that, buyers make bids and a blockchain-driven sale hopefully ensues.

“From the listing down to the final due diligence and drafting of agreements, everything is in it,” Kaltak said. “It’s a full solution.”

Lexit will receive a commission of between two to eight percent on each sale, according to Kaltak. However, the commission will be paid only in Lexit’s own token (LXT), which is currently in private pre-sale. In keeping with the community-based approach, Lexit will also offer a partnership program with a generous split on commissions.

“This partner program is feeding deals directly onto Lexit, and we give them 50 percent of our commission,” Kaltak said. “I believe in sharing.”

The company plans to officially launch in June.

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of Polycon18.

Photo: SiliconANGLE