Global investment platform TokenMarket is planning to raise £10m via a Security Token Offering (STO), according to a press statement issued by the company. TokenMarket has offices in Malta.
TokenMarket says the STO, which is open to professional and self-certified investors, marks the first of its kind where the shares issued are represented as blockchain based digital tokens. The crowdfunding campaign is expected to take place within the Financial Conduct Authority’s (FCA) Regulatory Sandbox.
Over the last two years, TokenMarket has assisted innovative blockchain companies in raising more than £240m.
“There is a huge unmet demand for growth finance, particularly amongst tech startups. Europe has markedly failed to match the prowess of the US in nurturing technology champions that drive innovation, economic growth and job creation,” says Ransu Salovaara, TokenMarket CEO and Co-Founder. “At the same time, everyday investors are often shut off from exciting investment opportunities. We firmly believe that STOs will help to solve this dilemma by democratising access to finance while providing the same investor protections as traditional securities,” he adds.
TokenMarket garnered £9m revenue in the past financial year. Up to this point, the company says it has been self-funded in its entirety. TokenMarket plans to use the additional funding to fully capitalise on the expected £77bn a year market of startup and growth company financing.
“Over the past 12 months, our team has been working on tokenised securities. We have designed and built an open-source platform that focuses on market transparency and security. We believe we have constructed a fully compliant yet non-custodial, blockchain-based platform that helps early-stage companies raise funding while potentially giving investors earlier liquidity,” says Mikko Ohtamaa, TokenMarket CTO and Co-Founder.
The TokenMarket platform is planning to expand with the inclusion of its security token exchanges in the European Union and Dubai.
The TokenMarket STO launches in two stages; a private placement for professional investors which is now open, and a tokenised equity crowdfunding campaign for self-certified investors which is expected to take place in March 2019.
TokenMarket is a global investment platform with offices in London, Gibraltar, Helsinki, Malta and Singapore.
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