Investors with €100 now have the opportunity to benefit from the pre-IPO market.
On June 26th the new era of venture investment started as Raison app users received their return from Airbnb pre-IPO units. This is the first time ever when micro investors with an entry ticket of €100 participated in late-stage venture investment, which is now possible with the help of blockchain technology.
The total return for pre-IPO investors who purchased Airbnb private shares via digital units equals 45%, Raison app revealed. Raison app is the only marketplace that allows non-accredited users to invest in private equity companies like SpaceX, Robinhood, Klarna or Kraken starting from €100.
Before Raison app entered the market, investments in late-venture were not accessible for retail investors due to high entry ticket and a requirement of accreditation. Like market disruptor Robinhood, Estonian startup pursuits to democratise investing, but in a field of Venture Capital.
How does it work?
To purchase a share in a private company, Raison app uses pooled investment vehicles managed by a general partner, its parent company Raison Asset Management, regulated by US SEC. To obtain shares in a private company its created a separate investment fund with the singular purpose of holding the only company in its portfolio.
To create small fractions of such investment fund, Raison app applies Ethereum blockchain protocol (ERC-20) and issues units tied to the investment fund. Unit’s smart contract guarantees that 1 unit equals 1 share and secures the right of ownership. The process is highly transparent due to blockchain technology.
By purchasing units of the fund, a user is enrolled in the register of its shareholders, which is maintained on the blockchain. The investor has the right to own the shares of the company and the right to receive dividends if it’s paid. Thereby unit-holders are not direct shareholders of the company so they do not get voting or information rights from the underlying company.
Raison app launched its first pre-IPO units in 2019, the same year TechCrunch Disrupt jury selected app in the top 5 fintech start-ups, while this year Raison app was included in the top 10 European companies by Startup Grind. Now the marketplace includes 15 companies, half of which are available for purchase, including Better.com — a fast-growing property tech company from the US and Kraken —one of the biggest cryptocurrency exchanges.
Private companies listed on the marketplace are backed with the biggest venture funds and have a valuation higher than $1 billion. Recently, Raison app users had an opportunity to purchase Klarna shares right before its mega-round, which made the company the most valuable startup in Europe. Today, Klarna unitholders have a 166% gain on the investment.
Moreover, Raison app has a goal to add 20+ companies this year among which you can find well-known startups like N26, Grammarly, Reddit and Bolt. Raison app is disrupting the venture capital market, allowing anyone with €100 to become a venture investor and share the success of the world’s most advanced companies that are shaping our future.