The future of startup investing belongs to the crowd, say the founders of Arcton, and they are preparing the ground for startup IPOs.
As is well known, VC firms and professional investors have tended to put on the brakes since the turnaround in interest rates and remain reluctant to provide fresh capital. Investments in fintech companies and other techs are currently nowhere near the euphoric highs and fantasy-driven peaks of earlier years.
Merens Derungs and Francesco Biviano, founders of fintech company Arcton, make a virtue out of necessity, stating, “Startup investment has historically only been available to the richest three percent of the population. It’s time to democratize this asset class. The future of startup investing belongs to the crowd.”
The idea is not entirely new; crowdinvesting has been invented, and the number of platforms that offer small investors access to startups has grown rapidly in recent years. This opinion is apparently also shared by the creators at Arcton, which is why they recently published the first Startup Investor Map.
Read more about Arcton and find the most important financial news with the Born2Invest mobile app.
Startup Investor Map
The Investor Map is a visual representation of 116 organizations that open access to startups for investors in different ways. Why this map?
What stands out, according to Arcton, is the strong growth of crowdinvesting, where individuals can invest in startups with small amounts. Despite this dynamic development, the number of Swiss platforms remains manageable, the founders find. Therefore, leading international platforms were also included in the map.
Nevertheless, Arcton focuses on Swiss investors and Swiss startups – with the consideration that Switzerland produces extremely successful startups, but Swiss investors still rely on foreign startups for the majority of their commitments, much to the chagrin of the local startup scenes.
With the “Swiss Startup Investor Map”, Arcton wants to show investors concisely how they can invest in local startups. Whether the map can create effective incentives remains to be seen – at least the map provides an overview of who is in the game and connected to startups in the area of startup capital. The map in high resolution can be downloaded for free at Arcton.
Things get more concrete with a public marketplace for startup investments
According to its own statements, the Zurich-based FinTech is building the first public marketplace for startup investments. The platform developed by Arcton creates the environment to invest in startups with small amounts. Up to this point, it is comparable to the services of existing crowdinvesting platforms.
However, Arcton claims one major difference: what’s new, say the founders, is that investors can trade their shares around the clock once the campaign is over, much like listed stocks. This approach is said to be fundamentally different from existing startup funding, where investors are often locked into their shares for up to ten years. In addition, according to Arcton’s founders, secondary markets simply do not exist in other crowdinvestings.
To ensure that shares can be traded at any time, Arcton relies on a partnership with the decentralized stock exchange Camelot.
Into the next round with startup IPOs
The fintech company also differentiates itself in the description of the services it offers. It doesn’t call itself a crowdinvesting platform, but a marketplace for startup investments with startup IPOs.
The first startup IPO (initial public offering) with tokenized shares is scheduled to launch before the end of October. The IPO candidate to debut is Geneva-based Money Masters, a company that aims to democratize financial literacy. Immediately after the IPO, investors will be able to trade their Money Masters shares in real-time via Camelot. In anticipation of the startup’s IPO, Arcton is hosting an IPO roadshow across Switzerland, with the finale in Zurich.
Fresh capital for the Arcton
In order to be able to financially tackle the upcoming challenges, Arcton raised 350,000 Swiss francs in a pre-seed financing round in September. With the fresh capital, the FinTech wants to pave the way for “a new type of startup investment: Startup IPOs.”
Those who do not want to draw the dividing line between crowdinvesting and startup IPOs too sharply now can be surprised by the first upcoming startup IPO. Or, our editors’ view: what name the various financing vehicles go by is not really essential. What is important is that they exist to interest investors in promising startups.
The economy needs new ideas and impetus. The impulse providers, success-hungry startups, need capital and thus accessible and walkable financing channels so that their ideas can develop into strong business models. Every additional platform that brings startups and investors together is a win for the economy and for the startup scene. And, if things go well, for investors as well.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in MoneyToday.ch. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us
ESG Investing Is About Getting It Right Over the Long Term Without Losing Profitability
There are many aspects that condition the selection criteria in ESG investment, such as the environmental or social dimensions, without...
Soybeans and Soybean Oil Appears to start a New Leg Down on the Charts
Soybeans and the products closed lower last week on improved rains for central and northern Brazil and still too much...
Why Coinbase Increasingly Relies on Solana
The crypto exchange Coinbase has set itself the goal of processing transactions in less than a second and for less...
Roche Will Pay Up to €2.8 Billion for Carmot Therapeutics
Roche is set to acquire Carmot Therapeutics, along with three clinical-stage assets for treating obesity and diabetes, for a maximum...
Groupon Is Overhyped and Overexposed — Here’s Why RDE, Inc. Is a Better Alternative
In the last month or so, Groupon’s been on a little bit of a recovery bull run following some hype...
Africa2 weeks ago
Burkina Faso Industry Week Focuses on Technological Innovation
Biotech1 week ago
SeniorDomo Continues Commitment Abroad and Starts Operations in France
Biotech22 hours ago
Roche Will Pay Up to €2.8 Billion for Carmot Therapeutics
Fintech2 weeks ago
Colombia Leads the Region’s Fintech Ecosystem Segment in Financial Inclusion