Euronext Lists First Crowdfunded Security: Domobios
As public and private markets continue to blur, Euronext has commenced trading of Domobios – a Belgian company that raised capital on equity crowdfunding platform MyMicroInvest. The securities began trading today on the Euronext Expert Market (Public Auction), an electronic trading platform for non-listed securities. The event is said to be the first secondary transaction in a “crowdfunding instrument on a transparent and secure trading platform in Europe”.
“This represents the ultimate opportunity to make the crowdfunding market more transparent, more liquid and therefore more appealing to a larger audience”, said José Zurstrassen, Executive Chairman of MyMicroInvest, “We are very proud to introduce the world of crowdfunding into the Euronext Expert Market, which will be the first such operation in Europe.”
Domobios is a healthcare company that raised €370,988 on MyMicroInvest delivering a post money valuation of €725,500, according to the campaign page. Domobios has been one of MyMicroInvest’s most successful crowdfunding campaigns. The company is profitable and is seeking capital for international expansion. The purchase price per share on MyMicroInvest was stated at €100.Shares opened at € 300 in thin trading.
According to MyMicroInvest, now investors in crowdfunded securities issued on their platform may contact their broker (a member of Expert Market) and follow clear instructions to sell (or purchase) shares.
Vincent Van Dessel, CEO of Euronext Brussels stated this event proves that a stock exchange and crowdfunded securities can benefit from a mutually beneficial relationship.
“Crowdfunding needs a secure and transparent secondary market. Euronext Expert Market offers new options for crowdfunding investors looking to assess better the time frame of their investment – including the exit strategy – and smoothly transfer their shares,” said Van Dessel.
Several UK companies have raised capital online and then followed a listing on the LSE AIM. Chapel Down, a UK based winemaker may be the best known example. which listed shares following a capital raise on Seedrs. SyndicateRoom raised capital for the Mill Residential REIT which promptly traded on AIM as well. In the US, the advent of Regulation A+ equity crowdfunded securities recently saw the first company, Elio Motors, trade on the OTCQX.
Van Dessel told Reuters that crowdfunding is an opportunity for his firm.
“It’s a growth area but still a small market. I expect further progress in this area in the coming months as we are not only in contact with crowdfunding companies but also in talks with their associations.”
The Euronext Expert Market launched in 2014. Euronext is a pan-European financing marketplace and currently operates in Belgium, France, the Netherlands and the UK. It claims the title of the number one venue on the continent with €104 billion raised.
MyMicroInvest is the leading investment crowdfunding platform in Belgium and has raised over €14 million for 41 different companies. The platform recently hosted a self-crowdfunding round which saw over € 1 million raised in under one hour.