The security token wave is growing, will you capitalize or sit on the sidelines?
Gooood Morning Rainmakers,
Introductions are boring, let's cut to the chase and…
Get liquid 🌊
Whiskey just went global 🥃
On a distant island far, far away, there is a whiskey distillery looking for whiskey enthusiasts to invest in their company via a security token offering.
This island isn't just any island though…
It's home to a population of just 50K and some of the most jaw-dropping landscapes!🤯
If you haven't figured it out yet, the island I'm referring to is the Faroe Islands 🇫🇴 and it's located in between Iceland, the UK, and Norway.
The company conducting this STO is called Faer Isles Distillery:
The STO was initially offered locally on March 15th and raised $718K in only 2 weeks from over 500 shareholders!
After their initial success, they have since opened it up to the world and have taken investment from over 25 different countries.
STO deal terms:
Payment forms accepted: BTC, ETH, EUR, USD
Minimum purchase: 50 shares, which is ˜$16
Fundraise timeline: 03/15-07/31/2021
This right here clearly displays the true beauty that security tokens and blockchain technology bring to the table.
The technology enables privately-owned firms to seamlessly raise capital from a global investor base.
Without the onset of the internet and blockchain technology, none of this would even be remotely possible.
The thing is, the Faroe Islands didn't even have access to the internet until 1996.
It may be a distant, remote island, but they are slowly becoming more and more westernized - they even have a Burger King 😂
In essence, as long as you have an internet connection, you could be living under a rock anywhere in the world and hypothetically invest in anything.
“You can have a guy in Uganda who’s able to invest in a rare car that’s kept in a vault in Stuttgart, tokenized by a company in Liechtenstein and it all fits within this recognized regulatory environment.”
INX Making Money Moves 💰
But, before we break down how they fundraised this impressive number, who the heck is INX and why do they want my money?
INX is a fully registered digital asset marketplace for trading cryptocurrencies, security tokens, and other blockchain-based assets and is domiciled in Gibraltar with an office in Israel. 🇬🇮 🇮🇱
They were able to receive approval from the SEC as a foreign firm to conduct the first-ever security token IPO!
Traditionally, most security token fundraises in the U.S. are restricted to a limited number of investors due to the private securities exemption rulings, but since this was an IPO, everyone was invited to the party!
Interestingly enough, this was also the first-ever IPO to accept cryptocurrency as payment.
Per a report, 54% of investors paid in cryptocurrency, while the other 46% paid via traditional USD bank wires.
Let this be a valuable insight to any other issuers raising money to authorize cryptocurrency as a payment option.
At the end of the day, the goal is to meet your fundraising objectives, so why wouldn't you allow cryptocurrencies as an option?
Now that you know INX a little better, let's see how they raised this mula!
Okay, Jerry, settle down, it's just a newsletter, I'M GETTING TO IT!
INX Fundraising Buckets:
💰IPO: Raised $85M from 7.2K investors
💰Valdy acquired INX: $32.2M
💰Private Sale: $7.5M
The majority of their fundraise came from US investors via their IPO, but they raised about $40M from two other avenues.
The other two areas were via a private raise and being bought out by a Canadian company.
Prior to the launch of their IPO last year, they raised $7.5 million from their private network, and then in the midst of the IPO, a company by the name of Valdy announced the acquisition of INX.
I know this may sound odd.
“How can Valdy come in during the midst of INX's IPO and buy them out.”
It's because the INX IPO isn't actually offering equity like traditional IPOs do.
They are offering investors pro-rata distributions of 40% of the company’s operational revenue, which most likely means revenue incurred via their marketplace.
Now that INX has raised a boatload of money, the real fun begins.
Let's get more security tokens trading!
What else is making it rain ☔️
Fun fact of the week 🤯
My nickname is Sauce because I like sauce on everything… I mean everything…
My favorite sauce has to be split between sweet & sour and teriyaki most days
Had great teriyaki Saturday night for dinner 🤤
What's your favorite sauce? Reply to the email and let me know!
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Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗♀️
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Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.