If you are thinking about what tokenised equity means, here you go.
Tokenized equity: This kind of equity is like any standard share purchased in a listed company, except that those shares are in the form of crypto tokens. Do you ask why?
Nowadays, businesses are finding it convenient to adapt to the digitized crypto-version of equity shares, thanks to the growing adoption of blockchain. Tokenized equity has emerged as a convenient way to raise capital. Here businesses issue share in the form of digital assets such as tokens or cryptocoins.
The above definition is as per Investopedia and you can read more about tokenised equity in the preceding hyperlink.
Now, let’s get back to the story.
TokenMarket, which is a global investment platform, yesterday announced plans to raise up to £10m via a crowdfunding campaign() that is expected to take place within the Financial Conduct Authority’s (FCA) Regulatory Sandbox. It would be done via Security Token Offering (STO). The offering is open to self-certified investors and professional. Also, it would be first of its kind where the shares issued are represented as blockchain based digital tokens.
TokenMarket was founded in 2016 by Ransu Salovaara and Mikko Ohtamaa, with an aim to help facilitate the tools and foundation for blockchain orientated businesses to grow and develop in an emerging market.
Till date, TokenMarket has been able to assist 30 of the most innovative blockchain companies in raising more than £240 million, issuing digital tokens to over 250,000 investors
The company has offices in London, Gibraltar, Helsinki, Malta and Singapore, and is set to expand the EU and Dubai.
TokenMarket STO launches in two stages
Stage 1: A private placement for professional investors.
Stage 2: A tokenised equity crowdfunding campaign for self-certified investors. It is expected to take place in March 2019.
What Ransu Salovaara, TokenMarket CEO and Co-Founder had to say on the subject.
“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.”
TokenMarket has been completely self-funded up until this point and claims to have £9m in revenue in its last financial year.
This is what Mikko Ohtamaa, TokenMarket CTO and Co-Founder had to say on the potential of blockchain technology and the platform.
“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.”