STOKR recently joined the Silicon Luxembourg Business Club. Get to know the company through our interview of Tobias Seidl, Co-founder and Product Strategy Leader.
(Featured Image: STOKR co-founders Tobias Seidl and Arnab Naskar / Image Credit © STOKR)
Tell us about your startup.
STOKR is a peer to peer interface which allows small and medium size companies to seek and obtain funding from professional and retail investors via Ethereum based smart contracts.
Traditionally, it’s difficult for smaller ventures to obtain funding from banks without collateral, and capital markets are usually too expensive to enter. On the other hand, retail investors don’t have access to innovative smaller ventures as they can mainly invest via existing capital markets in funds or stocks of larger companies. With SMEs making up 99% of all ventures in Europe, we bring retail investors and SMEs together through our interface to solve these two problems.
How did you come up with the idea?
The initial idea was to create an interface where retail investors can look up existing investment products according to themes which are more tangible. In early 2017 at a blockchain conference in Munich I have met my co-founder Arnab Naskar and our other talented co-founders with various backgrounds who brought the idea of implementing blockchain technology. Since then we are working on the idea to create an interface where we connect retail investors and smaller ventures using the advantages of smart contracts and work with the existing capital market rules.
“We create an alternative capital market where investors can invest in ventures they truly believe in”
What are your products/services?
We are a technology company which provides the ventures with Ethereum based smart contracts, the use of our beautiful interface where they can feature their businesses, raise funding via the issuance of their own profit participating tokens and connect with a community of industry experts and passionate investors. Token purchases can be only made by Investors who have undergone a digital KYC/AML procedure. The public Ethereum addresses of verified Investors will be entered in a so-called whitelist contract.
Investors have the possibility to search and to learn about the ventures, the related verticals and the risks coming with investments in those ventures. The Investors will not only learn about risks but also how to manage them with risk management tools, as for example diversification and valuation tools. In addition, ventures and investors can build communities where they can exchange knowledge about different verticals.
What is your business model?
We provide the technology set-up to the ventures including smart contracts and the use of our interface as well helping them with the legal set-up together with our legal partners. After the venture has received successful funding, they pay a success fee depending on the amounts raised.
Who are your clients?
Our clients are innovative small and medium companies based in any European member state which can be active in various fields of business. Currently, we’re looking into property tech, mobility and fashion, as well as authentic products.
What are the next steps in your development?
We are about to launch the STOKR interface within the coming months with the first ventures featured. Stay tuned.