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FinLab AG: Cashlink Technologies brings venture capital into the blockchain
DGAP-News: FinLab AG / Key word(s): Cryptocurrency / Blockchain/Miscellaneous Frankfurt/Main, May 28th, 2019 – The Frankfurt fintech start-up Cashlink, a portfolio company of FinLab AG (ISIN: DE0001218063; Ticker: A7A.GR) is currently issuing its own blockchain-based digital securities. This makes Cashlink one of the first companies in Germany to digitize securities and issue them as equity instruments. The aim is to demonstrate the functionality of their own product. The digital securities are issued in a private placement to another new business angel in addition to the four existing investors Finlab, Panta Rhei, seed & speed and Deplanis. The digital securities reflect profit participation rights. This means that all investors who invest in the company via this instrument participate economically to the same extent as the company’s shareholders – for example in exit proceeds or dividend payments. The sale of digital securities is aimed exclusively at professional investors such as venture capital funds, business angels or high-net-worth individuals. The legal framework for the issuance of the digital securities was designed by Cashlink in collaboration with the internationally renowned law firm Ashurst in accordance with German law. Germany as a location offers a high level of legal security for all parties involved in the issuance of digital securities compared to other countries. “By successfully issuing digital equity to venture capital investors, we have shown how start-ups can easily provide their investors with an additional form of raising capital: A completely digital investment with a very simplified investment process via indirect, virtual participation,” says Michael Duttlinger, co-founder and managing director of Cashlink. He further explains: “In exchange with renowned venture capital funds and business angels, the standard market conditions of investment contracts were transferred into a digital form. The economic investment conditions are thus just as attractive as classic investments. “The first issuance of a digital security by Cashlink in the form of a security token confirms that we have invested in a very innovative and technologically optimally positioned company. We see great potential here to be able to participate in the future form of corporate financing through digital securities with Cashlink technology,” comments Stefan Schütze, Member of the Board of FinLab AG. Standardized, digital fundraising has numerous advantages for start-ups and investors. The simplified shareholder structure and significantly lower transaction costs also make the investment of smaller amounts attractive for start-ups and investors, which means that more capital can be made available overall. By issuing the tokens, professional investors can also continuously invest in a company. So far, start-ups have bundled investments into financing rounds due to the high transactions costs involved. By investing via digital securities, young companies can now raise capital exactly when they need it. This creates additional flexibility for both: startups and professional investors. The fact that the digital securities are issued on a blockchain also makes it possible to transfer them easily and inexpensively to other investors. More transparency and the traceability of transactions are another advantage of using a blockchain solution. Which technology is used? About Cashlink Technologies GmbH: About FinLab AG:
28.05.2019 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | FinLab AG |
Grüneburgweg 18 | |
60322 Frankfurt/Main | |
Germany | |
Phone: | +49 (0)69 719 12 80 – 0 |
Fax: | +49 (0)69 719 12 80 – 011 |
E-mail: | investore-relations@finlab.de |
Internet: | www.finlab.de |
ISIN: | DE0001218063 |
WKN: | 121806 |
Indices: | Scale 30 |
Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Stuttgart, Tradegate Exchange |
EQS News ID: | 816401 |
End of News | DGAP News Service |