Blockchain-based investment platform TokenMarket is planning to raise up to £10m via a security token offering (STO), where for the first time shares will be issued as blockchain-based digital tokens.
Image: TokenMarket to raise £10m through STO. Photo: Courtesy of Markus Spiske/Unsplash.
TokenMarket stated that the offer will be open to professional and self-certified investors. The crowdfunding campaign is anticipated to take place within the Financial Conduct Authority’s (FCA) Regulatory Sandbox.
TokenMarket CEO and co-founder Ransu Salovaara said: “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.
“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 whilst providing the same investor protections as traditional securities.
“As a platform we work with many exciting businesses, and we are delighted to launch our own STO, demonstrating our commitment to this revolutionary financing model.”
In the last two years, TokenMarket has assisted blockchain companies and helps in raising more than £240m. The company earned £9m revenue in the last financial year and has completely been self-funded until now.
It plans to use the additional funding to fully capitalise on the expected £77bn a year market of startup and growth company financing.
TokenMarket STO will be launched in two stages. One is a private placement for professional investors which is now open and a tokenized equity crowdfunding campaign for self-certified investors which could take place next month.
TokenMarket co-founder and chief technical officer Mikko Ohtamaa said: “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.”
The TokenMarket platform is presently offering fundraising and token issuance and is set to expand by including its own security token exchanges in the EU and Dubai. This approach is expected to offer professionals access to primary and secondary markets.