TokenMarket, a UK-based investment platform, is scheduled to kick off its security token offering (STO) this Monday (July 8), according to their website, closing on July 22nd.
As previously reported, TokenMarket is seeking up to £2 million in equity in the company. TokenMarket reports that, so far, it is has helped to raise approximately £240 million for early-stage firms.
The TokenMarket STO is being undertaken under the watchful eye of the UK Financial Conduct Authority as part of their Fintech Sandbox program.
“Since our inception in 2016, we have seen exponential growth within disruptive startup fundraising models, particularly blockchain powered crowdfunding. With over $14 billion being raised via blockchain based funding during 2017/18, we witnessed everyday investors increasingly participating directly in early-stage financing rounds.”
Of course, much of the money raised during the 2017-2018 time frame was under the largely unregulated initial coin offering phase. TokenMarket’s offer is different because it is pursuing a security offering which is compliant under UK law.
TokenMarket claims a community of 170,000 registered investors. The company intends on leveraging this reach to facilitate primary issuance of securities as well as secondary trading. Even if you do not use their issuance service, you may still trade your token on the TokenMarket platform.
While TokenMarket is queueing up their self-crowdfunding round, their home page indicates other security offerings will soon follow.
As it stands now, the following companies are accepting indications of interest from investors:
- Cryotech Nordic – a cryotherapy firm
- Almond STO – an app based firm that aids individuals in reducing their carbon footprint
- Dovu STO – a token wallet and marketplace
TokenMarket is incorporated in Gibraltar – a jurisdiction that has pursued regulated digital asset offerings and trading. The company has applied for a DLT license in Gibraltar and currently operates under the transitional provisions.
Ransu Salovaara, TokenMarket CEO, recently explained that following the STO the company will leave the Sandbox as a fully regulated investment platform.
It will be interesting to see how much TokenMarket can raise in its allotted time frame (which could, of course, change). In the UK, you may crowdfund as much as you like but at £8 million you must file a prospectus – a significant speed bump.
If you are a non-accredited US investor and interested in the offer – sorry, you cannot participate.
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