Luxembourg-based STOKR lands €3.9 million to meet surging security token demand

Today STOKR, the EU’s pioneering digital marketplace for alternative assets, has announced the conclusion of its pre-series A funding round with strategic investments from Borderless Capital, Utopia Genesis Foundation, and G1 Ventures. With over €3.9 million raised in total, STOKR plans to scale up its investment platform to meet the surging demand for EU-compliant security token offerings (STOs).

Founded in 2017, STOKR is a European pioneering digital investment marketplace for alternative assets, where smart investors connect with and fund innovative businesses. STOKR is the ‘all-in-one solution’ for young and growing ventures looking to raise capital in the EU. Operating out of Luxembourg, STOKR provides founders with the full suite of technical deployment, investment structuring, and compliance support for the issuance of EU-compliant security token offerings (STOs).

Through carefully selected high-profile offerings, STOKR fosters a risk-reduced environment, liberates investment opportunities from traditional venture capital, and directly connects visionary ventures to a network of professional and retail investors. STOKR allows investors to participate in the future success of a diverse range of ventures through profit- or revenue-sharing rights, without middlemen such as custodians or brokers.

Despite the pandemic, STOKR received massive interest from ventures throughout 2020 as a turn-key solution to efficient fundraising in Europe.

“We bootstrapped STOKR in 2017, when we founders pooled together over €1 million of our own funds,” STOKR’s co-founder Tobias Seidl shared. “It has been great to see the company grow as we have been able to welcome more ventures and investors to our platform, and the support from our own early investors will help scale up our operations even further.” 

The successful pre-series A round follows a seed round In 2018, in which STOKR received a strategic investment from iFinex Inc. doing business as Bitfinex.

The strategic investments will add to STOKR’s suite of tools for ventures looking to raise funds. By integrating with Borderless Capital, STOKR now offers Algorand as an issuance platform for security tokens, in addition to its already available issuance options on Ethereum and the Liquid Network. G1 Ventures, a venture capital firm with a primary focus on blockchain innovation on the European market, brings its valuable network from the blockchain space for STOKR to better service its venture partners.

“The tokenization of securities enables a whole new wave of surrounding financial services such as fractional ownership of securities, integrated dividends payments with stablecoins such as Tether (USDt), lending, and capital markets, to name just a few,” said David Garcia, CEO and Managing Partner of Borderless Capital. “The innovation that STOKR platform has developed, combined with the power of the Algorand blockchain, will allow these new financial instruments to grow at an exponential level; we are very excited and proud to back the plans and vision of the STOKR team.”

STOKR hosts investment opportunities from a diverse range of industries, including sci-fi strategy MMO title Infinite Fleet, Italian luxury car manufacturer Mazzanti, and an upcoming partnership with the Utopia Genesis Foundation to issue tokenized music rights.

In the first quarter of 2021, STOKR will facilitate the tokenization of over €100 million worth of assets.