Security Token Market Begins $5 Million Web3 Crowdfunded Capital Raise

First Crowdfunded Capital Raise to Use Securitize’s Web3 Technology

Jul 6, 2022

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.

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.

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.”

Participating in STM’s Web3 crowdfund is easy. Investors simply complete Securitize’s identity verification process to gain access to the fundraise. They sign the offering subscription agreement through their digital wallet and, immediately after they transfer their investment funds in the form of USDC stablecoin, their tokenized shares will be issued on the Avalanche blockchain protocol.

About Security Token Market

Security Token Market (“STM”, stm.co), is the largest repository of security token trading data and news, tracking over 500 primary offerings with a live-trading data feed for over 200 live trading equities, fractional real estate properties and debt.

Security Token Market is also a leading media company in the industry, with multiple professionally produced shows developed in-house amassing millions of social media impressions and tens of thousands of views, they are driving mainstream adoption for blockchain technologies in capital markets.

They additionally sell alternative asset data through a complex database to allow for funds and institutions to compare the arbitrage pricing between 24/7 trading tokenized stocks in comparison to the public market variants, while also providing context on the greater market of tokenized investment products.

About Securitize

Securitize is a digital asset securities firm with a mission to provide shareholders access to invest in and trade alternative investments, and for companies to raise capital, manage shareholders, and offer shareholders potential liquidity. Securitize has pioneered a fully digital, all-in-one platform for issuing, managing and trading digital asset securities, consistent with the existing U.S. regulatory framework, with a community of over 1.2 million investors and 3,000 businesses connected. Securitize is comprised of Securitize, Inc. and its subsidiaries Securitize LLC and Pacific Stock Transfer (both SEC-registered transfer agents), Securitize Capital, LLC, Securitize Markets, LLC (an SEC-registered broker-dealer, member of FINRA and SIPC, and operator of the company’s alternative trading system). Learn more at http://www.securitize.io.

Media Contacts

Security Token Market: Megan Nyvold, megan@stomarket.com

Securitize: Evan Wagner, evan.wagner@securitize.io

Disclosures

Private market investments are speculative and considered risky, including potential loss of your investment, and may not be appropriate for every shareholder. Private investments are generally an illiquid asset class; shareholders cannot sell their funds when they want to without potentially facing high losses. Any discussion of liquidity is purely speculative. Past performance is not indicative of future results.

Crowdfunded securities are generally offered by early stage companies and investors should be prepared to lose some or all of their investment. Investors should read all of the risks and disclosures prior to making any investment decisions. Securitize Markets is an SEC-registered broker-dealer, FINRA member and operator of Securitize Markets ATS, and an SEC-regulated Alternative Trading System.

Check the background of Securitize Markets on Finra BrokerCheck.

Securities are offered through Securitize Markets, LLC, (“Securitize Markets”) a registered broker-dealer and member FINRA/SIPC. Neither Securitize Markets, nor any of its affiliates provide any investment advice or make any investment recommendations to any persons, ever, and no communication through herein or in any other medium should be construed as such. Securities offered on the Securitize Markets ATS have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Assets listed herein, such as digital assets or tokens using blockchain, are speculative, involve a high degree of risk, are generally illiquid, may have no value, have limited regulatory certainty, are subject to potential market manipulation risks and may expose investors to loss of principal. Investments in private placements, start-up investments in particular, are also speculative and involve a high degree of risk. Investors must be able to afford the loss of their entire investment. Eligibility to buy and sell securities on the Securitize Markets ATS is determined by Securitize Markets in its sole discretion. Offers to sell, or the solicitations of offers to buy any security can only be made through official offering documents that contain important information about risks, fees and expenses associated with the applicable securities available for trading on the Securitize Markets ATS. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed herein, and are encouraged to consult with a financial advisor, attorney, accountant, tax advisors, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Past performance is not indicative of future results. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided herein or through any references/links herein. Any financial projections or returns shown herein are provided by the issuer of the relevant security and Securitize Markets has not verified the accuracy. Further, there can be no assurance that any valuations provided by issuers are accurate or in agreement with market or industry valuations. Securitize Markets and its affiliates make no representations or warranties as to the accuracy of such information. Securitize Markets may collect certain information about you that helps us comply with various securities regulations and rules and the USA PATRIOT Act, a Federal law that requires all securities firms to obtain, verify, and record information that identifies each applicant. The information also helps us more fully understand your investment profile and identify what types of investments or strategies may be suitable for you. The term “Investors” used on this website, typically refers to accredited investors where applicable. Please note: if we cannot verify the information you provide, we may be required to restrict or deny your account. Trading during Extended Hours Trading Sessions carries unique risks, such as greater price volatility, lower liquidity, wider bid/ask spreads, and less market visibility, and may not be appropriate for all investors. There is no guarantee that a diversified portfolio will enhance overall returns, outperform a non-diversified portfolio, or prevent against loss. By accessing this site and any pages thereof, you agree to be bound by our Terms of Service and Privacy Policy.