Funded Security Token Offerings: an Overview
It is no doubt now that Security Token Offerings steadily replace Initial Coin Offerings as a form of fundraising. STOs offer a wider range of options both for founders and investors, alongside with a higher level of security for both sides. But all this is mere theory, and what about practice? We’ve made an overview of 6 funded STOs for you. It would be helpful to take a look at them and draw lessons, if you consider running your own STO, or to invest in (but make sure to do your own due diligence and don’t take any information you get from here or elsewhere as investment advice).
Some of these projects have raised over $ 100 M, others – just a little over $ 3 M. However, not all projects are equal when it comes to plans, scale and requirements for launching a product. So we recommend you not to judge a company by the bare numbers of the raised funds. It is more useful to keep in mind the whole concept of the project and see if the funding is enough to cover the specific needs this project has.
Concept: Neufund is basically a platform for asset tokenization. The project provides an end-to-end solution for token issuance. It has an open-source set of protocols for enhanced ownership, which allows creating legally-binding security tokens for a representation of real-life assets on the ETH blockchain. By utilizing Neufund the companies will be able to conduct regulated token offerings.
Token sale ended: December 16, 2018
Total funds raised: $ 3,85 M
Concept: Elio is creating a new type of a low-cost, ultra-high mileage personal vehicle. It gets up to 84 MPG and has a targeted base price of just $7,450. Elio is supposed to be an answer to the problems of spiking gas prices, air pollution, expensive cars, and traffic congestion. Moreover, the company claims to create an extra 1,500 jobs.
Token sale ended: October 15, 2018
Total funds raised: $ 16,92 M
Concept: Aspen Digital, Inc. is a corporation from Maryland that owns the St. Regis Aspen Resort in Aspen, Colorado. The resort has 3 buildings and 179 guestrooms, 25 residential club apartments and 3 food & beverage outlets. Other amenities include approximately 29,000 square feet of meeting space, an outdoor swimming pool with a seasonal bar, a fitness center, and a 15,200-square-foot Spa. The resort also features a number of leased retail spaces. St. Regis Aspen Resort is an iconic trophy property. The STO investors got an indirect fragmented equity ownership stake in the resort.
Token sale ended: October 01, 2018
Total funds raised: $ 18 M
Concept: tZERO aims at integrating cryptographically secure distributed ledgers with existing market processes. This will help to reduce settlement time and costs, as well as increase transparency and efficiency. tZERO's Security Token Front-End solution makes legitimate security token trading easy and more efficient from both a cost and operational perspective. The solution is integrated with tZERO's risk management software, order management system, matching engine, and other technologies. tZERO’s mission is to help existing market participants improve their workflow, alongside with allowing new customers to participate.
Token sale ended: August 09, 2018
Total funds raised: $ 134 M
Nexo is the world’s first Instant crypto overdrafts. Nexo is powered by Credissimo – a leading fintech group that has been successfully operating across Europe for over 10 years. The Nexo slogan is ‘Let your crypto work for you’. A Nexo Wallet is an insured wallet that lets users borrow instantly in 45+ fiat currencies and earn daily interest on their idle assets.
Token sale ended: April 01, 2018
Total funds raised: $ 52,5 M
Blockchain Capital is a San Francisco based venture capital fund investing in technology companies that leverage blockchain for their work and foster innovations in the blockchain economy. Blockchain Capital was founded in 2013. The company’s passion is to provide entrepreneurs with the tools to succeed, which includes funds, expertise, partnerships, talents, and strategy.
Blockchain Capital has already funded 75+ companies and projects as a multi-stage investor buying both equity and tokens. The company has issued security tokens and created the BCAP, a tokenized VC fund.
Token sale ended: April 10, 2017
Total funds raised: $ 10 M
These are only 6 projects out of many – the 6 most noticeable and successful ones. We at Priority Token believe that many more projects will emerge in the next years, embracing Security Token Offerings as a legitimate and efficient form of modern fundraising.
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