Austrian blockchain startup Blockpit raises over €2.5 million from angels and its token offering

Austrian blockchain startup Blockpit raises over €2.5 million from angels and its token offering

Since April this year, Blockpit, a regtech company specialised in compliance for crypto investors, has accumulated more than 2.5 million from its Security Token Offering (STO). On top of that, after their initial investment in July 2018, the European Super Angels Club have now doubled down on their investment in Blockpit via the club’s ‘EXF Alpha’ syndication fund.

Part of the deal with Super Angels Club was an additional purchase of Blockpit’s security tokens (TAX tokens) by the club’s members. Issued in Austria under Austrian law TAX tokens guarantee investors the right to a share of the future revenue. Florian Wimmer, CEO and co-founder of Blockpit believes that it is thanks to this form of financing, Blockpit was able to collect more than 2.5 million in less than four months. "The combination of different forms of financing is ideal for our further growth. The aim of the financing round is to raise five million euros by the end of the year", he adds.

Berthold Baurek-Karlic, the founder of Venionaire Capital and President of the European Super Angels Club, sees blockchain-regtech as a "painkiller" for the financial industry and stresses the high demand for such solutions in this sector:

"Several global banks have been sentenced to heavy fines in recent years for failing to comply on time with anti-money laundering regulations such as AML4. Blockpit provides the proof of origin for crypto transactions and the necessary transparency when profits from these trades are exchanged into other currencies or transferred back to your bank account. The solution also calculates whether and to what extent a possible tax liability exists", says Baurek-Karlic.

With its software for calculating and the compliant reporting of transactions from cryptocurrencies and crypto-assets, Blockpit is aggressively pursuing the regtech and B2B sector. The startup can already count many private individuals and institutions such as banks and tax authorities among its customers, and with the infusion of the capital aims to further accelerate its growth.

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