Feb 25, 2021

Luxury car-maker Mazzanti raises funds on STOKR

Mazzanti
stokr
STO
blockchaininvestment
Joanna England
4 min
Luxury car-maker Mazzanti raises funds on STOKR
Italian automobile manufacturer Mazzanti is the first supercar brand to give investors a revenue share through an STO...

STOKR - the Luxembourg-based digital marketplace for alternative assets, has announced the launch of Mazzanti's security token offering (STO) on its investment platform.

The move makes Mazzanti the first supercar brand in the world to raise funds in the form of digital securities - and allow its investors a revenue share via an STO.

Mazzanti Automobili builds luxury, custom-made hypercars in Pisa, Italy and is one of the most sought-after hand-crafted hyper car-makers in the world. Founded in 2002 by Luca Mazzanti and Walter Faralli, the company offers three models, the Evantra, the Evantra 771 and the Evantra Millecavalli, each personalised and tailored to the individual requirements of enthusiasts from around the globe. The entry price for a Mazzanti is US$800,000 - but premium models routinely sell for $1.2m.

Mazzanti investors

Currently, the offering for a select number of European countries is capped at €999,999 (US$1.2m) and Mazzanti will further allow customers to purchase all editions of the iconic Evantra model with Bitcoin. The raised capital will be used to develop a special edition of Mazzanti's flagship hypercar - the Evantra Millecavalli R.

Investors on STOKR can purchase "MZZ," the token issued by Mazzanti, at €1 each, starting from a minimum investment of €50. MZZ entitles investors to a 50% revenue share in the sale of the special edition Evantra Millecavalli R. The token is issued via Blockstream AMP, a platform for the tokenization of securities built on the Liquid sidechain of Bitcoin, which has been directly integrated with STOKR.

Mazzanti's founder Luca Mazzanti, described the STO launch as a great moment for the company. He said, "I am proud to be taking the growth of Mazzanti Automobili one step further and directly involving many passionate enthusiasts in the production of our hypercar. In our continuous pursuit of excellence and innovation, we immediately recognized the potential of security tokens for our goal of inclusion and expansion."

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Investing on STOKR

According to reports, STOKR, which was founded in 2018, was selected by Mazzanti as the platform for the public investment round because it provides easily deployed solutions for enterprises to launch EU-compliant STOs. The digital marketplace also enables both retail and professional investors to directly engage with and fund projects through the user-friendly platform.

The startup venture opens up access to high-profile investment opportunities from the inner circle of traditional venture capital and all types of investors can engage with young and growing projects in a simplified and risk-reduced environment, without the need for middlemen such as custodians or brokers.

Arnab Naskar, the co-founder of STOKR, told FinTech Magazine that Mazzanti's decision to tokenise its funding drive is a trendsetting move. "Almost every financial asset will be tokenised in the next few years. We believe that innovative small-cap companies like Mazzanti will be the early adopter of tokenisation of financial assets. Reasons being: simplicity of fundraising, cost-effectiveness, and access to capital markets-based finance without going to a bank or diluting heavily in front of a VC."

He said the company's turn-key solution was a major factor in attracting ventures to the platform. "We provide an end-to-end solution that includes technology and other allied services required for the issuance of such financial rights in a tokenised form. Choosing a platform like STOKR allows ventures to focus on creating investor relations and effective communication.

Naskar also believes the solution provides a good opportunity for small to medium-sized enterprises to compete on a global scale. He explained, "European SMEs require risk capital for their innovation which will help them to compete on a global scale. Financing by issuing revenue participation rights with no ownership dilution and fixed interest payment is a great opportunity. Previously, issuing such instruments was costly and time-consuming. STOKR has made it easier by streamlining and simplifying the process for the companies."

He added that blockchain technology has become an integral part of such transactions because it is more cost-effective. "Also, blockchain is not a buzzword anymore. Existing banking institutions and exchanges are using blockchain to reduce inefficient and costly middlemen. We are enabling this innovation for the 99% (SME companies of Europe)."

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Jun 10, 2021

FIVE things fintechs must do to keep investors onboard

Fintech
Investment
venturecapital
AI
Brandon Rembe, CPO, Envestnet...
4 min
Fintech innovations drew in first-time investors who reshaped the markets. What new advancements will help them continue their rise?

New investors flocked to the stock market during the COVID-19 pandemic. Thirty-eight percent of investors said they had never had a brokerage or similar account before opening one in 2020.

Low or no-fee trading options have helped accelerate the trend – nearly half of new investors said they accessed their account primarily through a mobile app. As FinTechs, how do we create the trust needed to keep new investors in the market and create a fruitful customer experience for them?

The financial industry does a disservice to individual investors if we merely offer tools that focus on making money quickly, an approach that usually backfires. Instead, the surge of interest presents an enormous opportunity for those who want to help more consumers use financial technology to educate them on responsible spending, saving, and investing in order to achieve financial wellness current fintech tools have welcomed individual investors in the door.

Now, it’s time to focus on education and improving their experience going forward. There are several ways those of us in fintech can step up to shape the future of retail investing so that it works better for everyone, starting with the following areas.

Equal access to financial wellness education

Financial health should be available to everyone — but today, not everyone has the educational resources to achieve it. One study shows that only 3.9% of students from low-income schools were required to take a personal finance class. What they aren’t learning in school or from family members, fintech companies can provide on their platforms.

The companies should move from solely offering financial services to a more responsible model of education, advice, and prescriptive choices to help consumers develop better habits and make wiser financial decisions. Not only can they empower consumers and bridge historical wealth divides, but they can also stimulate growth by opening up new consumer segments.

More personalisation

Just as we’ve come to expect that our fitness routines are tailored to our individual bodies, we’re also ready for finance tools that go beyond one-size-fits-all solutions. But only six percent of financial institutions say they’re using the kind of technology that allows them to deliver a deeply personalized experience. Fintech tools need to reflect that financial success looks different for each of us.

For one consumer, it may mean providing guidance on how to pay off student loans early; for another, it may mean prescriptive actions that enable them to stick to a budget for the first time; for a third, it could look like prioritizing environmental, social and governance (ESG) investments, so that her portfolio aligns with her political beliefs.

Now, we are seeing financial technology beginning to meet the demands of personalized finance in a substantial and meaningful way.

The rise of AI-Powered Advice

Big-picture advice and predictive guidance used to be a feature of high-end financial advisory firms — a perk only available to those who could afford it. But thanks to rapid advancements in data analytics and artificial intelligence (AI), that kind of holistic advice is now more accessible than ever. AI-driven robo-advisors can parse many different streams of financial information, delivering customized answers to key questions: Is it time to buy a home, or is it smarter to keep renting? Can I afford to take out another student loan?

Intelligent connectivity powered by AI can anticipate consumers’ needs and next steps, making proactive suggestions that guide them along the path to financial wellbeing. Fintech companies can also help consumers identify when their financial picture becomes too complex for a robo-advisor, and help them find a human financial advisor to meet their needs. 

Focus on financial mental health

New investors are quickly finding that the market can be overwhelming. That’s not surprising, financial anxiety is common and studies show that financial stress can have an impact on mental health for some.

It’s not enough for fintech companies to give retail investors access; they also must provide the guidance and support that help consumers manage their financial well-being. Educational tools can ensure that consumers are well informed about their options.

Predictive analytics can anticipate consumers’ questions, serving them key information and insights before they ask. Features that emphasize a comprehensive notion of financial well-being, rather than short-term wins and losses, can also help ensure that consumers are keeping their eyes on the bigger picture.

Gamification for good

The surge of gamification apps has done an impressive job making investing as engaging as playing a video game or joining a social media platform.

Much of the current use of gamification emphasizes short-term thinking, but there’s also an opportunity to help consumers think more broadly about their overall financial picture. One example is peer benchmarking, a feature that enables help consumers to see how their financial habits compare to those of friends and fellow consumers.

Gamification can also be used to incentivize making smaller, smarter choices — for example, rewarding saving over making an impulse buy.

The future of fintech is about more than just broadening access to the markets. It’s about making sure more individuals have access to the tools that can help improve their financial well-being—in the ways that suit their own circumstances and needs. The potential to act within their own set of individual priorities, with their long-term financial wellness in mind is much more empowering to a consumer than simply relying on short-term, high-risk investments.

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