DomRaider, the pioneer French company in the world of blockchain, is opening up its capital through an Equity Token Offering. All the titles will be recorded on blockchain, making this operation one of the first to occur in this form in France and in the world. The fundraising will open up the capital to professional investors in order to boost the development of the blockchain technology behind Auctionity, DomRaider’s flagship blockchain platform.
An Equity Token Offering (ETO) is a type of fundraising in which a company adds shares to its capital and records them on blockchain. These shares grant investors a percentage of voting rights as well as titles of ownership within the company. On top of making the shares impossible to forge, recording titles on the blockchain will bring more liquidity to buy and sell them, as they will indeed be listed on specialized exchanges which enable the valuation of ‘security tokens’.
Therefore, just like with traditional titles, the company shares will have an exchange rate and foreign investors will be able to buy and sell shares on dedicated platforms akin to traditional stock exchanges.
The objective of this operation for DomRaider is to raise 10 million euros in order to accelerate the development of the Auctionity project. Auctionity is a decentralized blockchain platform launched by DomRaider in 2017 after a successful ICO during which the company issued its own DomRaider Token (DRT). These utility tokens will serve as an additional currency for auctions on the Auctionity platform from September 2019.
During the Paris Blockchain Week in April 2019, The French Minister of Economy and Finance as well as the Secretary of State in charge of digital affairs have reiterated their wish for France to become the first European technological hub for blockchain.
With decree n° 2018-1226 from December 24, 2018, France was the first country to enable the registration of securities on blockchain, attaching the same legal value to them as regular titles. In this context, DomRaider is going to become one of the first companies to launch an Equity Token Offering for which shares will be registered on blockchain.
According to a research report from Meeticulous Research, the blockchain industry should amount to 28,2 billion dollar by 2025 with an annual growth (CAGR) of 74.1%. Major companies such as Sony, Facebook, Carrefour, LVMH, HSBC and Crédit Agricole SA have already made a foray into blockchain. DomRaider is betting on the future development of blockchain-related markets and the different usages which will lead to mass adoption. Many opportunities are already under consideration, more specifically for the market of tokenised physical goods.