The European Super Angels Club (ESAC) secures shares in Blockpit and is the first strategic investor to join us. This is yet another milestone we reach in 2018: previously this year, Blockpit was already included in the first blockchain program of US-based accelerator 500 startups. Furthermore, we were awarded as "Blockchain Startup of the Year" in Central Europe. Our schedule for 2019 is tight - in the first quarter, we are releasing version 1 of our web platform and mobile app, with plans to expand into Eastern European markets and the UK by April. Pilot projects with leading banks have been set up for this purpose.
"The Super Angels Club is a valuable strategic partner for us," says CEO Florian Wimmer. ESAC is a pan-European business angel network that brings together family offices, foundations and (corporate) venture funds. In addition to Venionaire Capital and KPMG, PHH Lawyers, Liechtensteinische Landesbank (Österreich) AG, 360 Labs from Graz and 42.cx around Daniel Mattes are also involved in the project. The investment in Blockpit was made through the Club's Luxembourg fund.
Compliance and AML increasingly important for governments and authorities
This is the second time ESAC secures shares from a so-called "RegTech" company. In the past, the club has already invested in 360kompany AG, an Austrian company that offers access to worldwide commercial registers.
RegTechs simplify and accelerate compliance processes for companies and authorities. Such services are increasingly in demand as terrorism, money laundering and economic crises lead to strict anti-money laundering directives and regulations for financial markets, financial institutions and service providers. This results in considerable additional costs for companies and public authorities. For example, this year major bank ING had to pay a fine of 775 million euros in a money laundering lawsuit.
High potential in RegTechs like Blockpit
Berthold Baurek-Karlic, managing partner at Venionaire Capital and chairman of the Super Angels Club, sees great potential in RegTech companies: "The market is huge and customers' willingness to pay allows meaningful business models if the quality of the solutions is right. Austrian start-ups are very strongly positioned in this area".
At Blockpit, we focus on developing a reporting standard for digital currencies in order to serve anti-money laundering directives and enable optimized tax calculation. This means more transparency and security for all parties at significantly lower costs.
Security Token allows for blockchain-powered revenue shares
In order to acquire additional funds, Blockpit issues the first token under Austrian law that entitles investors to a revenue participation right. In a "Security Token Offering" (STO), token buyers receive liquid revenue participation certificates, which are recorded via blockchain. The ESAC provides us with a considerable network of European business angels for whom our token can be of interest.
"We expect the Financial Market Authority (FMA) to green-light the STO before the end of the year," says CEO Florian Wimmer. "It would be possible to have the Blockpit token listed on the Stuttgart stock exchange or the Malta stock exchange, for example - these are considered to be very open to crypto."