With the funding, the Luxembourg-based fintech will scale up its investment services on EU-compliant security token offerings.
Photo: Co-founded by Tobias Siedl and Arnab Naskar, the startup has more than €100 million worth of tokenized assets / Credits © The LHoFT
STOKR, a funding platform in digital assets, which connects startups and SMEs with investors, has signed off a €3.9 million pre-series A funding with investors including Borderless Capital, Utopia Genesis Foundation and G1 Ventures.
The funding will help the startup respond to a growing demand in digital investment: “Our client base is exploding. Each day, we are getting 200 new users who are looking for startups and SMEs to invest in,” STOKR’s Arnab Naskar co-founder and business strategy (lead) explains. “Last week we recorded 2,000+ new investors.”
Many of them are based in France and are looking to invest in companies and projects in the gaming industry.
The €3.9 million funding will support the scale-up strategy of the fintech and its plans to meet the growing demand in digital securities (tokens) for the financing of innovative projects.
“We are looking for good quality projects and our 2021 target is to support companies which raise €100 million+ fund,” Naskar adds.
The move follows a previous seed round launched in 2018, in which STOKR received a strategic investment from iFinex Inc the company that operates Bitfinex, a cryptocurrency exchange platform.
“Today, STOKR has more than €100 million worth of tokenized assets.”
Founded in 2017 with the aim to open up the capital markets to startups and SMEs, STOKR issues digital securities (security tokens), which startup, SMEs and innovative projects can utilize as equity or debt instruments in order to raise investments and finance their activities.
The 12-person company is headquartered in The LHoFT and operates from its Berlin office.
Its tokenization solutions include a suite of technical deployment, investment structuring, and compliance support dedicated to the issuance of EU-compliant security token offerings.
Over €100 million tokenized assets
The platform uses blockchain technology. Ventures own the securities directly, while decreasing their risks and reducing their costs of issuance and transfers. While investors keep the hand on their tokens, while eliminating all depository risks and costs.
Today, the startup has more than €100 million worth of tokenized assets.
Projects such as “Infinite Fleet”, an epic MMO strategy video game, or Italian luxury car manufacturer Mazzanti raised funds on STOKR’s digital platform.
In December 2020, STOKR partnered with Utopia Genesis Foundation, a marketplace for fractional tokenized ownership of music copyrights, dedicated to investors looking to invest in music rights.
In March 2020, BAFin, the German Federal Financial Supervisory Authority, approved the first cross-border security token offering for a European SME, issued via STOKR’s platform, allowing ParkinGO, a venture specialized in the mobility and airport parking sector, to raise capital from institutional investors (via a private offering) as well as retail investors (via a public offering).