Today, Cryptix, the fintech Web 3.0 venture builder, announced that it has received regulatory approval to launch of Equito – a fully regulated, all-in-one investor platform designed to unlock new financing channels for European start-ups and SMEs (small to medium sized enterprises). With Equito’s one-stop-shop fundraising solution, companies can raise between 1 and 50 million euros via a cost-effective crowdfunding platform.
Equito offers a more effective model of crowdfunding that enables companies to raise money from an ideal crowd of investors – those who already understand and trust the brand. These include the companies’ own loyal customers, business clubs interested in a particular industry, financial institutions and more, forming a mix of retail and institutional investors.
Luka Gubo, CEO of Equito, said: “It’s a well-known fact that corporate finance across Europe has long neglected smaller businesses and start-ups. From prohibitively high fees to excessive complexity, both prospective investors and smaller businesses have had no feasible way to work together in building a strong SME economy. This is why we built Equito – to bridge this gap by unlocking access to new investment opportunities and sources of capital.”
Financing models like bank loans, venture capital or traditional crowdfunding have historically failed to meet the demands of smaller businesses in Europe compared to the US and Asian markets. Poor access to SME investment opportunities, an excessively complex crowdfunding market, low profitability of crowdfunding models, and limited resources for investment research to date have left businesses and prospective investors at a loss about how best to source or offer financing.
This is the challenge that Equito’s innovative crowdfunding model solves – connecting the businesses with the right crowds of investors. For investors, Equito provides a clear and simple-to-use digital investment platform that outlines key background information on growth strategies and historical performance of businesses. For businesses, it unlocks an entirely new channel of affordable crowdsourced financing, stripping away the unnecessary fees and complexity of other funding models.
Bernhard Koch, CEO and Founder Cryptix Group, said: “Equito marks a huge step forward – for the European SME landscape, prospective investors, and the Cryptix project. At the core of our Cryptix mission is solving real issues facing real people – with Equito, we are enriching our ecosystem with a solution to the lack of SME investment, improving the lives of many people across Europe as well as the growth prospects and competitiveness of businesses”
Equito has been awarded a MiFID II license (Markets in Financial Instruments Directive II license – a pan-European license for investment firms) in Slovenia, making it a fully-regulated investment platform. The roll-out of the Equito platform is divided into two phases:
Phase one, begins with Equito’s MiFID II license, marking the launch of the Crowdfunding platform and connecting SMEs across Europe and prospective investors.
Phase two, set to roll out later this year will expand the Equito platform into public markets, providing investors with options to invest in traditional stock exchanges and other asset classes all within the Equito framework. The focus will also be extended to real estate projects.
Equito was initiated by Swiss venture builder Cryptix and forms part of its ecosystem.
Equito is the all-in-one crowdfunding platform, where investors can get access to the private and public market with the aim of achieving higher returns. In addition, Equito provides investors with educational content on the platform to help them improve their investing skills as they invest.
To offer unique and promising investment opportunities for investors, Equito developed a new innovative model of crowdfunding. Equito helps companies raise money from their perfect crowd of investors (customers, business clubs, mix of institutional and retail investors etc.). Equito also takes care of all aspects of a crowdfunding campaign, from setting initial goals to promotion and execution.
Cryptix AG is a Web 3.0 venture-building platform and umbrella for a European cluster of businesses. The company establishes or acquires, promotes and maintains subsidiaries and client projects that contribute to the vision of creating “The People’s Financial Marketplace.” The Group consists of companies in Switzerland, Slovenia, Austria and many more.
Cryptix Labs GmbH, the in-house R&D centre, provides technology insights focusing on Blockchain and DLT. In addition, Cryptix Labs acts as a service provider in the areas of IT infrastructure, software development, and business development within the Cryptix Group and for its clients.