Combination of VC Investment and STO

Members of the European Super Angels Club first invested in the Blockchain-RegTech Blockpit in July 2018 and have now doubled down on their investment with a further round of investment through the club’s ‘EXF Alpha’ fund following the continued positive development of the business.

Part of the deal was an additional purchase of security tokens (TAX tokens) by the club’s members. Blockpit’s TAX token is the first security token issued in Austria under Austrian law and guarantees investors the right to a share of the future revenue. Thanks to this new form of financing, Blockpit was able to collect more than 2.5 million euros in less than four months.

Blockpit develops software for calculating and the compliant reporting of transactions from cryptocurrencies and crypto-assets. Customers are private individuals and institutions such as banks and tax authorities.

The combination of different forms of financing is ideal for our further growth. It provides us with the necessary liquidity and enables us to retain higher shares in our company. The aim of the financing round is to raise five million euros by the end of the year. We have already achieved half of this figure faster than planned, explains Florian Wimmer, CEO and co-founder of Blockpit.

According to Wimmer, “several major players” have participated in the investment round which should further accelerate growth.

A stronger focus on RegTech and B2B

Berthold Baurek-Karlic, the founder of Venionaire Capital and President of the European Super Angels Club, sees Blockchain-RegTech as a “painkiller” for the financial industry and stresses the high demand for such solutions in this sector:

Several global banks have been sentenced to heavy fines in recent years for failing to comply on time with anti-money laundering regulations such as AML4. Blockpit provides the proof of origin for crypto transactions and the necessary transparency when profits from these trades are exchanged into other currencies or transferred back to your bank account. The solution also calculates whether and to what extent a possible tax liability exists, says Baurek-Karlic.

Blockpit has focused on end consumers in the past. Since the first investment, the European Super Angels Club supported the company in their expansion of B2B partnerships and introduced specialist publisher “Linde Verlag” as a potential partner. Additional synergies can be leveraged through 360kompany AG, another RegTech and portfolio company of the club.