RISE Wealth Technologies is developing machine learning and Artificial Intelligence (AI) led trading strategies. Now, the FinTech startup is looking to raise $120 Million through a Security Token Offering (STO). If successful, it would be the largest European STO to date.
The RISE Security Token Offering (STO) Explained
RISE is integrating machine learning and AI with both traditional and digital asset trading.
The RISE app allows retail investors to manage crypto portfolios, while the RISE Scanner analyzes the performance of cryptocurrencies and stock markets. Currently, the scanner is in beta testing with 2,000 participants.
The company claims its AI trading strategies have already proven “more successful in various categories than traditional and other AI-based systems”.
Now, the company is looking to raise funds to further develop its technology. Through a Security Token Offering (STO), RISE aims to raise $120 million, which— if successful— would constitute the largest STO in Europe.
The offering, which RISE also refers to as a “digital IPO”, will be comprised of two waves: the first available only to accredited and professional investors in the United States, and a second available retail investors. The second wave is still pending regulatory approval, however.
Token holders will be entitled to 20% of profits before taxes (EBIT) paid out via quarterly dividends.
The offering will accept both fiat (Euro and the USD) as well as Bitcoin and Ether.
According to RISE CEO Stefan Tittel,
“RISE has an ambitious goal — to revolutionize the trillion-dollar asset management industry with our AI-based technology. The STO offers investors the opportunity to participate in the success of AI technology in the financial industry, with a repayment claim, profit share and an additional entrepreneurial opportunity to participate in an exit. This will enable us to link future technology with an exciting investment model.”
RISE will leverage Securitize— a platform which ensures the compliant issuance of security tokens.
In addition to equity, security tokens have seen implementation in regulated real-world assets to include real estate, investment funds, and fine art.
What do you think of RISE looking to raise $120 million through what could be Europe’s largest STO? Let us know what you think in the comments section below.
Image courtesy of Data Driven Investor.