Cloud Solutions, a Norwegian Insurtech company, recently raised equity capital on Invesdor’s crowdfunding platform. The offer was over-subscribed and the success is being attributed, in part, to the integration of Signicat technology.
Finland-based Invesdor explains that due to equity crowdfunding regulation that mandated know your customer (KYC) rules, accepting investors across multiple countries became a challenge. There became a need for physical verification such as passport proof etc. Invesdor overcame this challenge by incorporating technology from Signicat, another Norwegian company that is said to be the first and largest identity assurance provider in the world. Invesdor’s partnership with Signicat meant that Norwegian, Swedish, Danish and Finnish investors could participate in the funding round using eIDs such as BankID, NemID, banking credentials and mobile certificates issued by each country. This cross-border verification was key to Cloud Solution’s crowdfunding success.
“We want to offer businesses and investors a user-friendly and secure service for organizing cross-border funding rounds easily, and authenticating investors and entrepreneurs is a big part of that,” said Lasse Mäkelä, CEO at Invesdor. “However, authentication services are not our core business, so we wanted an experienced partner who could offer authentication services that investors in our target markets are familiar with. Signicat worked well for Cloud Solutions’ equity offering, as it has for dozens of other funding rounds on our platform.”
Axel Sjøstedt, CEO at Cloud Solutions. said the results speak for themselves. His SAAS Insurtech company was able to attract an investor group that aligned well with their company. And these investors came from multiple countries.
Antti Harsunen, Signicat Country Manager for Finland, said that having a large amount of people providing a relatively smaller amount of money is here to stay.
“As the market matures companies are looking to open up access to investors from around the world to secure the best valuation and the best investors to meet their ambitions. Historically this has been largely prohibited by KYC regulation, until now,”
Harsunen explained that by allowing investors to use existing eIDs crowdfunding platforms can easily become global boosting access for issuers and opportunity for investors.
“The success of Cloud Solutions with Invesdor is a testament to its potential.”
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