Germany’s security regulator the Federal Financial Supervisory Authority (BaFin) has approved the prospectus of StartMark in order to allow them pursue a security token offering (STO). The approval was received on July 15. Founded in Düsseldorf in 2018, the StartMark offers investors the opportunity to invest in early-stage firms beginning at just €100 using tokens.
This is going to be the 2nd STO which will receive a green light from BaFin as Bitbond few days back became the first company to issue blockchain-based securities with the explicit approval of BaFin.
StartMark Security Token Offering
StartMark in easy words can be understood as large VC fund which distributes investor money on a variety of promising startups in different industries. With the purchase of a token via the platform the investor will acquire a share in the digital bond. The STO has a maturity term of 15 years but the company indicates that a listing on an exchange is quite possible as well as private sales. The firm predicts a 10% to 20% annual return. The token will expectedly provide both profit participation and an increase in the value of the token is also expected. Upon maturity of the underlying bond after 15 years, StartMark predicts a tripling of the token value.
Before the start of regular sale, the firm will start a Familiy & Friends discount promotion from 1st August to 30th September 2019. Anyone who signs up for the StartMark newsletter and invests at least 700 Euros can take part. There is no limit to investors, but a maximum of 1 million tokens can be purchased at this stage.
At a Glance: A new trading platform for security tokens “1X” has launched with backing from Singapore Exchange (SGX), the country’s public stock market, and technical support from ethereum startup ConsenSys. The overall idea is to bring liquidity to an otherwise historically illiquid assets.