The State of Investment into Security Token Infrastructure — Q2 2019
Slow and Steady for a Quiet “building infrastructure” Q2 for Security Tokens
As we enter into the third quarter of the year, Security Token Advisors has once again conducted its research and compiled the statistics regarding investments into digital securities infrastructure. Recognizing that the concept of digital securities was a sexy investment in 2018 and early 2019, we can attribute the slow down in Q2 as companies putting their money to work before raising again, investor appetite decreasing for the technology, and new entrants slowly trickling in.
The punchline: Roughly $35,000,000+ has been additionally invested into security token infrastructure in Q2 of 2019. This represents a significant slow down compared to prior quarter and most of 2018. We’ve currently seen around $645,000,000 invested directly into the space.
We anticipate Q3 to stay the course of Q2 with the end of 2019 and beginning of 2020 expected to signal a new wave of fundraising for the companies that were able to find product-market fit, increased M&A activity for market consolidation, and multiple bankruptcies for the companies that couldn’t compete.
As always, we will continue to update this list as we find new information. Our last update was on January 10th, 2020.
Read our previous market report here.
Issuance Platforms
Figure/Provenance, San Francisco — $20,0000,000
Securrency, Washington DC — $7,000,000 (Previous financing of $8,400,000)
Liquefy, Hong Kong — $3,000,000
BrickBlock, Gibraltar — €2,500,000 (Previous financing of €5,000,000)
Exchanges
TZero*, New York — $5,000,000 (Previous financing of $136,000,000+)
Other Infrastructure Companies
No other infrastructure companies who raised money have been identified at this time.
ICO or FinTech Companies Also Offering STO Services**
PrimeTrust, Las Vegas — Undisclosed (previous financing of $5,000,000+)
20/30, London — $3,900,000 (ICO)
Acquisitions
Republic acquired SheWorx for an undisclosed amount.**
Currently fundraising category (notable mentions):
Stellerro, Tel-Aviv — $5,000,000
BlockState, Zug — $2,258,000
OWN, Liechtenstein — Undisclosed
TokenMarket, United Kingdom — £150,000
MERJ, Seychelles — $4,000,000
We will continue to update this list with missing information about Q2. Stay tuned and subscribe to see the Q3 report in October!
*Also does issuance.
**Not applied towards the total investment into Security Token Infrastructure due to some of the capital being invested towards non-security token infrastructure.
