Crowd for Angels, a London-based crowdfunding platform, recently listed the first STO backed by sports sponsorship assets. The security token issuer, Sports Investor Coin, claims that most of the funds raised via the sale of its tokens will be used to purchase sports sponsorship assets, thus creating token value for investors and providing sports organizations with liquidity borrowed against future sales of their brand assets.
Sports sponsorship assets are used to promote other businesses and their brands. Examples of these assets include the decal space on a race car, the naming rights to a stadium, and team partnership agreements (e.g. ‘official sports drink’).
Sports Investor Coin tokens will be sold through existing sports sponsorship asset networks at first, and through token exchanges later. A percentage of profits will be returned to token holders as dividends issued via smart contracts.
A regulated platform for selling equity, debt, and tokens
Crowd for Angels funded its own launch via a March 2018 ICO to become the UK’s first regulated crowdfunding platform for both private and public companies selling equity, debt, and crypto tokens. Crowd for Angels is authorized and regulated by the UK’s Financial Conduct Authority (FCA). Companies looking to raise capital can create, build, and manage what is termed a “pitch” on the CrowdForAngels.com website.
Investments are made and capital is raised by way of the sale of equity shares, debt bonds, and crypto tokens.
Most share sales on Crowd for Angels offer generous tax deduction benefits provided by the government to help high-risk, early-stage companies raise equity finance. Crowd for Angels does the paperwork to ensure investors can claim the full amount of tax deductions allowed by law.
Founders selling bonds on Crowd for Angels maintain full ownership of their company. A simple obligation to repay the money borrowed is created according to agreed terms, after which the relationship with the lenders ends. Lenders enjoy high interest rates, while founders benefit from easy to forecast expensing on loan payments that do not fluctuate.
Bonds sold on Crowd for Angels are “high-yield” debt securities issued by companies with no credit rating. Though the convertible loan notes are secured against company assets, this does not guarantee repayment of interest or principal. Bonds listed for sale on Crowd for Angels also carry an illiquidity premium because there is no right to early cash-in as there is no secondary market on which to sell them.
Token sale pitches
Crowd for Angels enables founders and investors to participate in an ICO on a UK-regulated crowdfunding platform. Startups can try to jumpstart and scale their project while paying fees only if their ICO is successful.
How to invest
Individuals and institutions must first register and be authorized as investors on Crowd for Angels. They can then browse pitches, click the pitch summary box to see the minimum and maximum funding targets, the funds raised to date, the pitch’s remaining days, company financials, and team bios.
With equity pitches, the investor can view share price, the number of shares offered, and tax relief eligibility. With debt pitches, investors can view the interest rate, conversion date (repayment schedule), and term.
Once an investor chooses a product, they click “Invest in this pitch” and link a bank account. This procedure acts as only a commitment until the pitch reaches its minimum target.
Investors use their Crowd for Angels dashboard to follow company updates, ask questions of the company and fellow investors on the pitch’s discussion board, and gain private access to the company once fundraising is complete. Investors can monitor their investment performance through the “My Portfolio” tab on their dashboard, including conversion, dividends, and interest payments notices.
How to list
Creating a pitch on Crowd for Angels is a fully online process with no upfront fees. The company creating the pitch fills out an application form with company details, the desired raise amount or range, and details on how the funds will be used. Crowd for Angels reviews the application and replies within two business days.
An approved company the writes the pitch, embeds a video, adds team bios, and uploads investors documents. Once a pitch reaches its target raise, Crowd for Angels creates the subscription agreement and then collects and delivers the funds.
Crowd for Angels has so far raised several million euros for pitch companies with a combination of equity and debt offerings. It now aims to leverage its regulated status to offer tokenized shares and bonds as a UK-sanctioned STO platform.
REMCO Software to see Security Tokens Listed on LATOKEN
REMCO Software is in the midst of completing a ‘security token offering’. As you may know, this refers to a crowdfunding campaign tailored towards accredited investors. During the offering, investors are able to purchase digital securities in the form of a token, typically representative of equity shares within the issuing company – an efficient merger of traditional and future finance.
Recently, REMCO announced good news, as they have secured an agreement that, once issued, will see their tokens listed for trading on the LATOKEN platform. By providing a flexible listing platform, LATOKEN will enable investors to easily trade between REMCO tokens and FIAT currencies. The ability to do so is expected to result in new-found levels of liquidity, not normally witness when dealing with such assets.
In their press release, representatives from both REMCO and LATOKEN spoke on the agreement, and what it means for the industry.
“We are especially pleased to welcome REMCO token in the pool of our future projects. Their business model is both practical and very innovative. It brings a great deal of added value to the industry.”
“LATOKEN’s innovative approach appealed to us…There are many crucial steps to getting this business off the ground, and we appreciate reaching this milestone with LATOKEN.”
REMCO is a young company looking to revolutionize the remittance industry. They intend to do so, by utilizing traits inherent to blockchain technology that will allow for greater transparency and efficiency in finance. They were founded in 2018, and are based out of Laurel, Maryland.
Company operations are currently spearheaded by CEO, Peter Ojo. Under his watch, the company hopes to successfully complete a security token offering, which will facilitate their envisioned future.
LATOKEN refers to ‘Liquid Assets Platform’. Founded in 2017, CEO, Valentin Preobrazhenskiy, has guided the platform into becoming a promising player within the industry. As their name implies, the platform aims to bring liquidity to a variety of assets. Through their FIAT gateways, they have now begun to attract the attention of companies, such as REMCO.
In Other News
While this is the first time that each of these companies have graced our headlines, there is no shortage of news in the industry. Here is a brief look at a few articles detailing recent partnerships, and industry developments.
Magic BlockchainQA to Collaborate with Securitize
It was recently announced by Magic Blockchain QA, that they have established a working relationship with industry leader, Securitize.
The nature of this relationship will see each company refer clients to the other. They are essentially building bridges, which will provide clients with a greater variety of integrates services.
In addition to client referrals, this relationship will see Magic BlockchainQA offer their quality and analysis services for the DS-Protocol. This protocol was custom built by Securitize to fit the needs of the digital securities industry. Through its implementation, clients are able to sell, create, issue, and manage digital securities backed by a variety of assets.
This development is reminiscent of one that occurred just recently. At that time, we reported on a similar relationship between DESICO and Securitize. As stated, these types of relationships are key to ensuring steady growth in the relationship. At this stage in the game, what is good for one player is good for all players.
Anuraj Soni, President of Magic Blockchain QA, took the time to address this development.
“The Securitize platform has gained significant prominence in last few years and this partnership allows Magic to train its consultants on this platform enabling Securitize clients easy access to a pool of Magic consultants who can help with the seamless adoption of this platform.”
Magic BlockchainQA touts themselves as the world’s first quality and analysis services dedicated to blockchain applications. Check out the following video to learn more about why this is an important and needed service.
This young company was founded in 2018, and is based out of New York City. Company operations are overseen by President Anuraj Soni. He boasts years of experience in leadership roles at companies like Bank of America, GENPACT, and other.
To date, Magic BlockchainQA has established partnerships with not only Securitize, but MythX as well.
Since commencing operations in 2017, Securitize has developed a tech-stack that allows for them to offers clients end-to-end tokenization services. These services range from token creation, to issuance, and lifetime management post distribution.
In Other News
To learn more about the companies discussed here today, make sure to check out a few of the articles below. While this is the first time we have detailed Magic Blockchain, Securitize is a regular on our newsfeed.
Blockchain Identity Firm WISeCoin Announces STO
The Swiss-based cybersecurity firm, WISeCoin announced plans to host an STO in Q2 2019. The announcement has captured the attention of analysts and follows the receival of a “no-Action Letter” from the Swiss Financial Supervisory Authority (FINMA). The move marks another step forward for the Swiss security token market.
WISeCoin is a subsidiary of WISeKey. WISeKey created the WISeCoin platform to furhte3r pursue their blockchain identity strategy. Speaking on the decision to host an STO, WISeKey CEO, Carlos Moreira, discussed how his platform utilizes a wide-range of “blockchain enabled microchips” to provide clients with a customizable identification system. He also touched on the importance of increasing your digital identification procedures to adapt to the “evolving device landscape.”
WISeCoin developers seek to revolutionize the world of digital identification via the integration of IoT, blockchain, and AI. The concept is anything but simple. WISeCoin integrates a host of proprietary technology to merge seamlessly merge these sectors. Here’s how the system functions.
Blockchain of Identity
Blockchain identification systems are nothing new to the sector. The ability to verify, authenticate, and securely manage digital identities via the blockchain continues to drive more firms into this business model. What makes WISeCoin different is their approach to the problem.
WISeCoin developers decided to leverage the immutable nature of blockchain technology by pairing it with the Internet of Things (IoT). The IoT is the network of billions of smart devices currently entering the market. These items are able to monitor and communicate with each other.
To put the scope of this network into perspective, there were 15.4 billion smart devices connected in 2015 according to IHS reports. Intel plans to expand that network to 200 billion devices by 2020. Of these smart devices, wearable units are the fastest growing. IDC forecasts predict a 31 percent increase in this sector by 2020.
As you could imagine, leveraging these devices is an extremely powerful way to monitor, verify, and authenticate people, or items. In order to accomplish this monumental task, WISeCoin developers employ “Root of Trust” RoT and PKI protocols. RoT protocols provide secure authentication across both digital and physical environments.
WISeKey International Holding Ltd.
The world of AI, IoT, and blockchain are destined to play important roles in the future. WISeKey combines the best attributes of these advanced sciences. The firm is sure to see continued success in the coming months as their STO approaches.
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