Bitbond to Launch Regulated STO to Raise $3.9 Million

The German blockchain-based lending platform is set to raise €3.5 million (around $3.9 million) (STO).
Per Tuesday’s announcement, the raised funds will be used to fund small business in Asia. Investors around the world can participate in the STO till June 8, except for citizens of the United States and Canada.

Do you wan’t to see the faces behind the curtain of the ?✨ Let me introduce you to our amazing team members! We’re excited😍 😍

— Bitbond (@Bitbond)

Founded in 2013, Bitbond offers loans to small businesses and primarily focuses on SMEs using eCommerce platforms, like eBay, Amazon, and Etsy. As seen on its website, its loan volume surpassed $15 million with a user base of over 165,000 spread across 80 countries.
Earlier this year, that the blockchain-based lending platform received a green light from BaFin to issue STOs. According to the peer-to-peer lender, it became the first such blockchain-based financial services to be supervised by the German market regulator.
“Small businesses are an incredibly important part of the economy, and hire the majority of all employed people worldwide. We see this STO as a way to help small businesses create more jobs, and supercharge their own growth,” Radoslav Albrecht, founder and CEO of Bitbond, said.
Bonds on blockchain
The security token, dubbed BB1, will work similar to a bond and the company will buy back the tokens after 10 years. Per Bitbond, the targeted return is 8% which includes a combination of a 4% p.a. interest coupon and a 60% profit participation potential.
The company is as Albrecht previously predicted that Bitbond might raise as much as €100 million with STOs.
The German company is also decently funded as, according to CrunchBase, it raised $10.7 million from venture capitals. In the recent debt financing round, the company secured $5.5 million, while previously raising $1.2 million, $671,000 and $.2.2 million in three separate funding rounds.