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The Munich-based FinTech start-up plans largest STO in Europe to date

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The Munich-based FinTech start-up plans largest STO in Europe to date

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 RISE Wealth Technologies aims for 120 million US Dollars issue volume with security token offering:

  1. Investment opportunity for professional investors in a technological change of one of the largest markets in the world since 15 July 2019.
  2. Profit participation rights with entitlement to repayment and participation in dividends as well as possible later company acquisition.

RISE Wealth Technologies, a FinTech start-up based in Grünwald near Munich, is a leading software technology company and solutions provider for the implementation of trading strategies based on Machine Learning [ML] and Artificial Intelligence [AI]. Today, RISE Wealth Technologies announced the roadmap for the upcoming Security Token Offering [STO]. With a target issue volume of $120 million, the company plans to launch the largest European STO to date. This puts RISE’s patent-filed technology base at the forefront of the international FinTech market. The STO was first launched on 15 July 2019 and is aimed at institutional and professional private investors. The STO has a minimum investment of 100,000 Euros for German investors and $50,000 for US investors. The RSE Token will be tokenized as a profit participation right. This will allow investors to participate more directly in the company’s success. The enterprise is now being scaled internationally with this STO.
RISE Wealth Technologies will be executing its “digital IPO” in two phases. Although initially only institutional investors and professional private individuals will be eligible to participate in the STO until September 15, 2019, a second phase will be open to retail investors as soon as the regulatory requirements are met. The objective of this financing phase is to rapidly globalize the business to fundamentally change the way funds, investors and asset managers are invested globally. According to the company’s estimates, its technological advantage over competitive technologies is two to three years.
RISE Wealth Technologies’ CEO and co-founder Stefan Tittel explained,

“The RISE STO is a one-time opportunity for investors to benefit from the fundamental shifts in a trillion-dollar market. The future of investment management lies in artificial intelligence. The flood of data on the financial markets is continuously increasing, while markets are changing more rapidly. The replacement of manual trading by an automated, data-driven algorithm will be breathtakingly rapid. The use of computers running at billions of times higher processing capacity simply leads to continuously better results in the global financial markets, as in all other areas of life. We believe that in the future, the most successful asset managers will be technology companies. At the same time, our approach is fully in line with the German tradition of engineering; we industrialize the invention process of trading models with our software.“

Innovative, digital investment model: Repayment entitlements and exit participation
Investors can acquire a profit participation right with the RSE Token – a financial instrument which is a common European measure in which the investor extends a loan to the company which is repaid in full annually over the term of 25 years, in the case of RISE. Investors who acquire a $1 token for $0.50 per cent in the first phase of the STO will receive the nominal value of $1 per token and can therefore achieve an annual repayment of 8%. In addition, each investor will receive a share of corporate profits and potential exit. The tokens remain fully undilutable. Tokens holders will receive 20% of the proceeds regardless of future financing or shareholder structure. Token holders can purchase in Euro, US Dollar, Bitcoin or Ether. For the issuance of the tokens, RISE succeeded in winning the renowned US-based specialist and Coinbase supported partner, Securitize.
Stefan Tittel added,

“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. I am optimistic that within the next five years up to $12 billion in institutional capital will be able to flow into trading strategies using RISE technology. Which would still be a negligible part of the market.”

STO is more attractive than a classic IPO
With $11 million funding by the founders and renowned Internet and technology entrepreneurs, tokenized corporate financing via STO opens up numerous opportunities for both RISE and investors. A STO is significantly leaner compared to a conventional IPO, as it is relatively easy to access an international pool of suitable investors. The digital processing of blockchain transactions also provides investors with numerous benefits: investments without media disruption, high transparency, a structured regular financial product as well as an enhanced global trad-ability of the STO token.
These benefits have made STOs increasingly popular on an international scale. Germany is still an exception; the regulatory prerequisites are very high. Michael Morsch, CFO at RISE Wealth Technologies said,

“But as a German company, it is self-evident for us to start our STO out of Germany and not to evade it, even if it means pioneering work. We have invested a lot of resources in the legal groundwork, but are convinced that this direct path will pay off in the long run.”

RISE AI investment experts have a two to three-year technological advantage
The success of the trade strategies that are developed with the help of RISE Wealth Technologies software is based on self-learning automated, data-based algorithms. The company has applied to patent a process in the field of artificial intelligence and machine learning that enables the continuous identification and cultivation of attractive investment opportunities. RISE AI trading strategies developed with the RISE AI platform are already more successful in various categories than traditional and other AI-based systems, which depend on the input of numerous analysts.
RISE licenses its AI platform to financial services companies, investors and institutions and receives licensing fees corresponding to the sums managed with the solutions. The RISE app, which enables retail investors to manage their crypto portfolios, will also provide subscription and transaction fees. The RISE Crypto Scanner, a wholly automated tool for monitoring and analyzing the performance of over 1,000 cryptocurrencies on more than 50 stock markets, is in beta testing with 2,000 participants.
About RISE Wealth Technologies:
The FinTech Start-Up Rise Wealth Technologies from Grünwald near Munich is a scientifically focused software technology company and a provider of solutions for the development of commercial trade strategies based on Machine Learning [ML] and Artificial Intelligence [AI]. The patent-filed AI Machine Learning platform will fundamentally change the way that funds, investors and asset managers make investments. The Rise methodology enables investors to continuously discover, validate and implement new trading opportunities in both highly liquid and illiquid financial markets across the globe. The RISE technology-based financial solutions have outperformed competitive products since 2016. The company’s next step is to scale into the $80 trillion global asset management market. At present, the company is financed with US$ 11 million and employs a workforce of around 20 experts in branches located in Munich, New York and Paris.
For more Information on the STO, visit website.
Press Contact:
Benedict Frauen
Senior Program Manager
RISE WEALTH TECHNOLOGIES GmbH
Luise-Ullrich-Str. 4
82031 Grünwald
T: +49-89-255 421 92
Havana Orange GmbH
Guillermo Luz-y-Graf
Brkenleiten 41
D-81543 München
T: +49-89-9 21 31 51-58

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Biraajmaan covers market trends of major cryptocurrencies. As a graduate in engineering, his interests lie in Blockchain technology. With over a year as a journalist, his articles focus on US and UK markets.
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