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In a post titled “What is the Bitbond STO and Why Should I Care?” published this spring, Bitbond Marketing Manager Mollie Thick criticized the cryptocurrency industry for “too much hyperbole, failed projects, and disappointed investors.” By contrast, Thick said that Bitbond – via its then just-announced security token offering (STO) – offered “a new breed of stable crypto investment with fixed income returns that other asset classes don’t deliver today.”
This week, the Berlin, Germany-based company announced that it had successfully completed its spring STO, raising more than $2.3 million (€2.1 million) in the process. The token offering makes Bitbond the first issuer to have its prospectus approved by BaFin, Germany’s security regulator. Bitbond noted that investors from 87 countries were involved (investors from the U.S. and Canada were not allowed to participate). The company also pointed out that more than $36,000 (€32,000) was earned by affiliates who helped promote the offering.
The new, tradable security BB1 offers a 4% annual rate, but has a targeted return of double that insofar as the security will pay out 60% of Bitbond’s profits to tokenholders for the duration of the term (10 years). The first payments are expected on October 1. Investors were able to participate in the offering via Euros as well as other crypto currencies such as bitcoin, Ethereum, and Stellar – which is the network upon which BB1 was issued.
The STO brings Bitbond’s total funding to $13.1 million. The company includes Hevella Capital and angel investor Sekip Can Gokalp, co-founder of mobile advertisement network, Mobilike, among its financial backers.
Founded in 2013, Bitbond offers a combined technology and data platform designed to provide financing to SMEs around the world. With customers in more than 120 countries, Bitbond helps small business owners access the working capital they need to grow their businesses by connecting them with both individual and institutional investors. With loan amounts up to €25,000 and terms up to 12 months, Bitbond leverages automation to accelerate the decisioning process and relies on the bitcoin blockchain to ensure efficient payments across borders.
As a platform for investors, Bitbond has enabled more than 1,800 individual and institutional investors to fund more than 1,300 loans. Investors can expect returns of approximately 13% per year via Bitbond’s fixed income investments in SME loans, and can invest for terms ranging from six months to five years.
Bitbond returned to the Finovate stage in 2016 to demonstrate its global automated SME scoring solution. Automated scoring enables loan applicants to instantly request a loan upon completion of the borrower application rather than wait up to 24 hours with traditional scoring methods. The solution is universal across countries, and leverages verifiable data from online revenues, payment processors, business software and accounts, as well as other sources.
Peer-to-peer small business financing platform Bitbond has entered into a partnership with 1741 Fund Management to launch an alternative investment fund.
The new investment opportunity is made possible through an open-ended investment fund from 1741 Fund Management. Through the partnership, any institutional investor will have access to a diversified portfolio of small business loans that are originated through Bitbond’s small business lending platform. The new product is set up as an Alternative Investment Fund under the E.U.’s Alternative Investment Fund Managers Directive.
Germany-based Bitbond offers small businesses across the globe fast access to working capital. Its platform connects small business owners with individual and institutional investors and leverages the blockchain to send cross-border payments quickly and inexpensively. Because Bitbond requires less manual involvement than traditional underwriting methods, it also has the advantage of scalability.
Since it was launched in 2013, the Bitbond platform has facilitated more than 2,300 loans worth $7.4 million (€6 million), most of which is used as short-term working capital for online retailers. Bitbond, which holds its own BaFin regulatory license, boasts more than 130,000 users from 120 countries.
At FinovateFall 2016, Bitbond launched an automated SME scoring engine. The tool offers a universal, automated scoring method that provides borrowers instant funding after their application is accepted. Last spring, the company brought in $5.4 million in debt financing and an undisclosed amount of equity funding, taking Bitbond’s total equity funds to more than $2.4 million. Radko Albrecht is founder and CEO.
Peer-to-peer small business financing platform Bitbond announced today it has received a debt commitment from Obotritia Capital, which has agreed to fund $5.4 million worth of loans on its platform. Obotritia has also invested an undisclosed amount of equity in Bitbond, whose current funding now totals more than $2.14 million.
Headquartered in Germany, Bitbond offers small businesses across the globe fast access to working capital. It does so by connecting small business owners with individual and institutional investors. Because it leverages the blockchain, Bitbond sends cross-border payments to merchants quickly and inexpensively. Since it was founded in 2013, Bitbond has originated 1,700 loans to small businesses in 120 countries.
Above: Bitbond’s Radko Albrecht (CEO & Founder) and Jarek Nowotka (CTO) debut the company’s automated SME scoring engine at FinovateFall 2016
At FinovateFall 2016, the company launched an automated SME scoring engine. “The main challenge about creating an international lending platform is credit scoring because data is different from one country to another,” said Bitbond CEO and founder Radko Albrecht in his recent FinovateFall demo. He added, “At Bitbond we have solved this and created the most international and most scalable SME scoring mechanism.” The tool offers a universal, automated scoring method that offers borrowers instant funding after their application is accepted. Because Bitbond requires less manual involvement than traditional underwriting methods, it also has the advantage of scalability.
If peer-to-peer lending isn’t hip enough to pique your interest, how does bitcoin lending sound? That’s exactly what Germany-based Bitbond is doing that earned them $1.2 million in investor funding today. This boosted the online SME lender’s total funding to $2.3 million.
The round was led by mobilike founder Şekip Can Gökalp. Other contributors include Fyber founders Janis Zech and Andreas Bodczek as well as Kreditech co-founder & CEO Alexander Graubner-Müller. Founder & CEO of Bitbond Radoslav Albrecht said, “We are happy to have such experienced investors supporting us on this exciting journey.” According to Albrecht, the funds will help Bitbond to “make lending and borrowing globally accessible” by furthering product development and growing its user base in underserved markets. Currently, the company has 76,000 registered users from 120 countries.
Since launching in 2013, Bitbond has extended 1,600+ loans worth $1.2 million. The company matches investors with SME borrowers from across the globe by leveraging the blockchain for cross-border payment processing. In October of 2016, Bitbond received a regulatory license from German regulator BaFin, making it one of the first regulated blockchain-based financial services providers.
Bitbond’s Radko Albrecht (CEO & Founder) and Jarek Nowotka (CTO) on stage at FinovateFall 2016 in New York
At FinovateFall in September, the company launched automated, universal scoring for SME lending. As Albrecht said in his demo, “The main challenge about creating an international platform is credit scoring, because data is different from one country to another.” The new offering solves this with its scalable, automated scoring mechanism that offers applicants an instant loan decision.