blockimmo STO

Update 1st of May 2019. The STO has been concluded and the IMMO security tokens have been distributed to our shareholders. You can still invest in blockimmo Ltd by buying IMMO tokens on the decentralized secondary market — STX.SWISS.

blockimmo tokenizes 20% of the company shares, participate in our rock-solid Security Token Offering (STO) and become a shareholder of the first regulatory compliant real estate platform powered by blockchain technology.

We’re not raising money to build and launch a product / technology, or gain the necessary legal and regulatory approval — that is already done. We’re regulatory compliant and have launched a solid, fully-functional product. We’re raising money to significantly and rapidly scale the business.
— Bastiaan Don, Managing Director of blockimmo AG.

Introduction

In the last 15 months we focused purely on developing a working regulatory compliant product for consumers while complying to existing laws and regulations. Since we chose to build our platform on the Ethereum Blockchain, it didn’t make any sense to introduce a useless “in-between” token just for the sake of raising money quickly.

We believe our idea is strong.

It generates true value because we use Blockchain technology the right way — enabling consumers to access previously closed markets — and the final product has been executed solidly. We feel comfortable enough to ask for funding because we believe we have created something with great potential that’s worth investing in.

2 major milestones we achieved during our journey are:

When we ask for funding, we want to make sure that you receive something of value in return — not just an empty promise or “access” to a consequently exclusive platform. Also we didn’t want to simply duplicate the function of Ether. Therefore, conducting a TGE or ICO (Token Generating Event / Initial Coin Offering) where we give out utility tokens was therefore never an option.

There’s only one solid way to raise funds — selling a part of our platform (company).

So that’s what we are doing.

Our Security Token Offering (STO) is actually based on “old-world” fundraising, which is a good thing because it creates additional value for our future investors.

How Our STO Will Work

First of all, we’re tokenizing 20% of the company shares (more details). All of the tokens (100%) generated will be sold to the public. In addition, our founder and managing director, Bastiaan Don, will convert CHF 425'000 of his shareholder loan into the IMMO Token underlying his confidence in the company.

Obviously this means we’re issuing a security token, as you have the right to receive (claim dividends function) future dividend payouts. In addition (or instead) we might choose to introduce a so-called share buyback program (more information).

But wait… there is more!

If you become a tokenholder (aka. shareholder) you’ll be kept up to date about how the company is doing. You’ll receive:

  • A monthly update email with news about the state of the company
  • A KPI Dashboard with key financial information (updated monthly)
  • An exclusive shareholder invitation to our yearly event (limited seats, first-come, first serve)

You will find plenty of information about the legal structure and company details in our prospectus, which can be download from our (invite only) STO data room.

How We Will Use the Funds

Now you might be asking us: , “Why do you need additional funds? You’ve already built the platform right? Why don’t you just “go live” and start earning money?”

Well, it’s not that easy.

After all, originally there were only two of us (Michael our lead developer and Bastiaan, managing and funding the business). Now our team has grown to four people, including Jesse (front-end developer).

That’s pretty small, compared to most of our competitors!

Take a closer look at any competitor in this space and you will see teams of 20 to 50 people or more. Now, we don’t see the need to grow that fast, but still as you can see on our hiring portal, we need around 12 solid and strong new team-members in various departments of the company.

In order to grow our company, we need more capital. We also need capital for the typical business expenses that come with running a company.

The Hard Cap is designed to support all these business activities, the company structure and its future developments over a 5 year-period.

So, where are we planning to use the funds? Here are our main priorities:

Operating expenses (recurring expenses)

  • Salaries (of our staff)
  • Legal (staying compliant to regulatory guidelines)
  • Outsourcing partners
  • Accounting
  • Marketing
  • Taxes
  • Other (i.e. office rent, office material, etc.)

We currently foresee that most of the funds will go to paying salaries of our staff (50%) which will help directly grow the business (sales, research & development, quality control, customer support and maintaining the lead). The other half of the funds will be used for marketing (15%), legal (10%), outsourcing partners (10%), accounting (5%), taxes (5%) and other miscellaneous expenses (5%).

blockimmo — fund allocation

STO Facts / Overview:

  • Token symbol: IMMO (Etherscan)
  • Token name: blockimmo
  • Token type: Security Token
  • Price / token (up to CHF 1.5 Mio): CHF 1.50
  • Price / token (hard-cap reached): CHF 2.00
  • Total supply: 1’000’000 (representing 20% of shares of blockimmo AG)
  • Available for sale: 1’000’000 (100%)
  • Accepted currencies: CHF (fiat, by bank transfer) or Crypto: Ether (ETH), Bitcoin (BTC), CryptoFranc (XCHF)
  • Accepted investors: all, except US Persons under FATCA (exception made for accredited investors)
  • Minimum investment per person: 1 Ether
  • Start date and time: 1st of April at 00:00am CET
  • End date and time: 30th of April 2019 at 10:00am CET
  • Before you can contribute to the IMMO STO, you first need to register and successfully pass KYC and AML checks (powered by blockID, we bind your identity to your wallet and whitelisted you)
  • Let’s get started, go to https://blockimmo.ch and login (top right)
  • Once you’re onboarded, reach out to us to discuss any questions you might have and agree on next steps hello@blockimmo.ch / bastiaan@blockimmo.ch or on our Telegram Channel.
  • We will invite you to our (invite only) STO Data Room (NDA applies) where the following documents are available: pitch deck, offering summary, prospectus, sto terms, financial assumptions and outlook, technical documentation and process overview.

On-chain Shareholder Register of blockimmo AG

Together with our established partners MME Legal AG and Bank Frick we introduce a new way to synchronise a company share with a token. To be precise this means that 20% of the company shares were issued as 1'000'000 Partizipationsscheine (participation certificates without voting right, according to art. 656a sq. of the Swiss Code of Obligations). This creation was executed on the 31st of October and is publicly visible in the company register of Zug (Source).

Unlike other projects, we introduce a clean solution to solve 2 challenges:

  1. In general participation certificates have to be whole rounded numbers (i.e. 1.543 would not be possible) — this is a problem as tokens can have 18 decimals (i.e. 2.54859 IMMO)
  2. Deed and Transfer of co-ownership — within the designated smart-contract (link) the co-ownership and transfer between whitelisted addresses are available and automatically updated.

Now you are probably curious to learn how we were able to do this? We’re happy to share this with you and hope many more projects will follow the same road we paved carefully.

The 1'000'000 participation certificates are synchronised with a global certificate (Globalurkunde). This global certificate is safely held by Bank Frick. Precise details and further information you will find in our prospectus and STO terms, available once you are whitelisted and in the process of joining our STO.

Learn more: English / German.

What about trading or exchanging tokens?

Initially you will be able to trade your token (immediately, no lock-up period) in a peer to peer way (between whitelisted investors). As the IMMO-Token is a security, these can only be traded on regulated exchanges. We are already working on such an Exchange, known as STX.SWISS. As you might know this subject is quite sensitive, but we will work on it around the clock so our IMMO-Token will be listed at a regulated exchange the latest Q3 2019, we are aiming however for Q2 2019. Update 1st of May 2019: IMMO is now listed at STX.SWISS.

Why Should You Invest in blockimmo?

So, what are the benefits of investing in us? Here are some of the main reasons why investing in our company is a smart move:

We Are Pioneers

We are one of the first of our kind with a regulated product / DApp within a triple A jurisdiction (Switzerland and Liechtenstein). In addition, we are also in the process of becoming a member of a self-regulating organisation (SRO).

You Can Get Started Right Now

The first version of our DApp is ready to use (not just a promise or a MVP). Go ahead and play around with it on our live platform, you can invest in a dummy property or of course into our STO.

Our Team and Management is highly qualified

Our team of developers is of the highest quality. Convince yourself by trying our product and reading more about our source code and DApp setup. We have a strong board of directors, well-known people with a proven track-record in the real-estate, legal and blockchain industry, who are actively steering the company in the right direction.

Security is a Priority

Security is extremely important to us — our smart-contracts have been audited by New Alchemy, our whole platform has been penetration tested by Hosho and we have a live and public bounty program managed by HackerOne.

We have a strong vision / future plan

We have a long-term view within the whole ecosystem. A great example of this is our vision for the land registry (cadasters) and our talks with the Land Register Office in Zug.

Commercial Properties and Projects Are On The Way

We already have 1 commercial property and 2 real estate development projects in the pipeline, which will be announced and listed soon. Once we’ve had a successful STO and hired additional staff to support operations we will increase our efforts to list more properties and projects.

We Have Powerful Connections

We work closely together with strong industry players like MME Legal AG, Bank Frick AG, Bitcoin Suisse AG. We already have requests from two Western-European companies who want to completely tokenize their real estate portfolio. That’s without conducting any marketing!

Auction Style Crowd-Sale Option

Very exciting auction-style crowd-sale option for sellers — finding the best price possible, trustless as it is powered by Blockchain technology — learn more about it here.

Liquidity is Guaranteed (coming soon)

Once the platform is up and running and we’ve had several successful crowd-funded properties and projects, we will introduce a solution built on top of our platform — guaranteeing liquidity to investors and creating an “index-fund” of on-chain real estate.

Fun Fact!

By investing in blockimmo, you actually use our technology (tokenization of real estate, applied to tokenization of company shares). Just like investing in a property, you will invest in our company. This is known as “eating your own dog food” — a term that refers to the idea that companies should use and thus trust their own products.

What Happens Next?

Our immediate goal is to successfully launch and operate our platform in Switzerland. Shortly after we will expand to nearby EU countries. We will fully realize our vision when our platform is adapted to countries suffering corruption, fraud and a lack of infrastructure (i.e. lacking an official cadastre).

Switzerland is the perfect market to launch our platform because the Swiss land registry system is so solid. This provides a foundation we can build on and trust while taking the first steps towards building a new real-estate system.

Once our platform is operating smoothly and we’ve improved and refined it in the real-world, we will start to expand and move the official land registry on-chain. This is necessary for countries that aren’t fortunate enough to have such an excellent system in place like we do in Switzerland.

This is made possible by the use of a token-curated land registry in the blockimmo ecosystem (rather than a centralized registry as exists today). This registry is decentrally curated by entities in the blockimmo ecosystem, and its precision and truthfulness is intrinsically incentivised.

The way this decentralized registry works is that truthful curation and contributions will be rewarded and dishonesty will be punished (similar to proof-of-stake). When real-estate owners, sellers and potential buyers and investors are properly rewarded, they themselves will guarantee the accuracy of the land registry.

The result is a self-sustaining, permissionless, and fee-free system that will truly realize the full potential of blockchain technology in real-estate. We will keep working on this vision, and your contribution will ensure we can keep doing so in a professional way and with a long-term strategy, while staying true to blockchain principles and being fully compliant.

We would be honoured and delighted to welcoming you as a shareholder of blockimmo.

Should you want to invest, please contact us directly by email, phone or through our Telegram Channel.

blockimmo’s natural habitat in Crypto Valley — Zug

If you have questions, please check out our website, FAQs or feel free to come by in our office in Zug.

Back to work! Greetings from blockimmo team:

Michael, Jesse and Bastiaan!