First Crowdfunded Capital Raise to Use Securitize’s Web3 Technology
Security Token Market, a media studio and data analytics company building financial infrastructure to support the growth and development of the security token industry, and Securitize, the leading platform tokenizing digital asset securities, today announced the launch of the first-ever Web3 crowdfunded capital raise.
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The capital raise is being conducted pursuant to the Securities and Exchange Commission’s Regulation Crowdfunding (CF) exemption, made possible by the JOBS Act. That 10 year old law set the legal foundation for businesses to fundraise from their communities and individual investors, bypassing traditional banks and intermediaries. Blockchain technology is now enabling crowdfunding to reach the potential the JOBS Act made possible, enabling individual investment in private businesses at scale, with over $1.1 billion raised under Regulation CF and $2 billion raised under Regulation A+ during 2021 alone.
As the internet evolves from a centralized Web2 to a decentralized Web3, blockchain networks, smart contracts and digital wallets are making accessing the private markets even easier and more democratic by enabling people to become investors right from their phone.
Security Token Market is a leading, global source for data and news on tokenized assets, tracking 200 tokenized securities from 11 different live marketplaces worldwide, offering hundreds of tokenized primary market investment opportunities and securities available for secondary market trading. STM is a source of record for the size and state of the digital asset security industry.
Security Token Market supplies investors with state-of-the-art research tools for trading digital asset securities, including research, analysis and news. In addition to its tech platform, Security Token Market’s media presence is growing considerably, utilizing a micro influencer distribution strategy to broadcast high quality industry content to all demographics of varying levels of industry expertise, including six Youtube shows produced completely in-house.
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The beginning of STM’s capital raise follows a “test the waters” period in which 1,226 potential individual investors indicated their interest in investing a total of more than $5 million, which was 5X STM’s initial goal.
“Security tokens allow capital formation to be facilitated in public and private markets more efficiently than ever. We are excited to show the world how to execute this process in a compliant and scalable way,” said Kyle Sonlin, CEO of Security Token Market.
Founded in 2017, Securitize is an all-in-one solution for private companies to easily onboard and manage shareholders, tokenize assets, raise capital and enable liquidity, all powered by blockchain technology. Securitize is the largest digital transfer agency in the world and largest marketplace for investing in and trading tokenized shares.
“This is the first-ever Web3 capital raise. That means people will be able to invest directly from their digital wallet and in a single blockchain transaction, submit funds, create a blockchain signature for their purchase agreement, store a hash copy on the blockchain, and receive their tokenized shares instantly directly in their wallet. No waiting periods, physical signatures, intermediaries or wrong cap tables anymore,” said Securitize CEO Carlos Domingo. “Crowdfunding is now a proven way for businesses to raise serious capital by turning their fans and customers into investors. By reducing the friction of investing, Web3 crowdfunding will make it even easier for people to support and invest in projects and businesses they believe in.”
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