STO / ETO with IR CONSULT
= Pre-IPO-Financing

Since 1994 IR CONSULT is a highly specialized capital market consultant
for IPO's and Investor Relations in Germany / Europe.

Since 2017 we also are active in the crowd and crypto area and support companies to realize their STOs (Security Token Offerings) or ETOs (Equity Token Offerings).
Thus, we also prepare the basis for an IPO in the medium-term future.

Information about an ICO (Initial Coin Offering) or hybrid token are here.

Please look at this website and find out how we can support you.

Direct contacts: post@sto-ico.eu oder +49-6002-92042 (Germany).

German ICO

OUR LAST STO ACTIVITIES

- In 2024 we celebrate our 30th anniversary
- Road-show about real estate in Cyprus in Germany
- Press release: IRC professionalizes crowd financing
- Press release: IRC supports crowd financing of ARENDAR
- Interview about IRC at Expertentesten.de (German)
- Press release: STO - ideal for Growth Financing
- Presentation "Company Financing via Blockchain"
- Press release: STO - Ideal to Repayment of Crowd Financing and Corporate Bonds
- Publication: STO - Win-Win for VC's and Companies
- New publication: How to find investors for a STO?
- New article: IR CONSULT expects a new STO boom
- Article in VDMA Magazin about ICO financing
- Organization of the 1st ICO Day in Germany
- New article: How do ICOs become an accepted
asset class?
- New activity ICO consulting in 2017

STO = Security Token Offering or
ETO = Equity Token Offering

An Security Token Offering (STO) or Equity Token Offering (ETO) is a revolutionary way of raising capital for companies.

Especially start-ups and small and medium-sized enterprises (SMEs) can solve their funding problems, as the capital raising process is fast, easy and exceptionally cost-effective. After the ICO boom in recent years, now security token are expected to have a great future.

Since 1994, IR CONSULT has been a specialist for investor relations and going publics – that means normal IPOs. However, these require a lot of preparations (audited financial statements, securities prospectus, due diligence, etc.), approvals (BaFin, stock market) and regulations (disclosure and follow-up obligations) that make them quite expensive. Because of this time and cost intensity, this is not a realistic financing option for young, capital-seeking companies.

STOs/ETOs are a superior alternative or even
often the solution for start-ups and SMEs.

IR CONSULT uses its specialized knowledge as well as its established contacts to the financial world for start-ups and SMEs, too, and advises them on their STO/ETO realization and follow-up activities.

Your STO will be quicker and cheaper. We are specialist for realization as well as post-STO investor relations.

Because an STO/ETO today can also lead to an IPO in the medium term, which can then be much easier to implement.

We also select suitable VC's for you in order to finance your product launch as well as your STO.

Please read our STO brochure about STO-Advisory.

We are happy to answer your questions: mail@sto-ico.eu

or telephone +49 - 6002 – 92042

What is an STO/ETO?
How to issue an ICO?

In the case of an STO, a company issues itself or via an STO exchange own tokens instead of own shares (IPO) or a stake (VC). Interested investors can then buy these and usually pay with a crypto currency (Bitcoin, Ethers, etc.). The technical processing and booking on the account (wallet) of the investor is using the blockchain technology. That is why we speak of a 'digital share'.

It is possible to conduct an STO/ETO with an STO exchange, which not only helps with the issue, but also enables a regular, transparent and cost-effective secondary trading for the token. In addition, such crypto platforms have established access to interested investors worldwide, making the placement of coins faster and more successful.

Or you create an own STO landing page.

The money raised flows directly to the company and can be used for the planned future and growth investments. There are some variations of tokens (sometimes as equity). Security token allow a kind of dividend payments and sometimes also voting rights. In contrast to crowdfunding, which is often realized via a subordinated loan, which therefore has to be repaid, the STO capital is available to the company over the long term!

In addition to speculators, the current STO/ETO investors also include more serious investors, family offices and, increasingly, institutional fund managers. They either receive certain benefits, such as a profit-based dividend, or also an additional payment in the case of any exit, if the company will be sold in the future.

Especially institutional investors are interested in dividends and in rising prices of the token, if the company's investments realize the expected positive results. Trading on an STO exchange or the medium-term to change token to shares (IPO) makes it possible to realize these gains.

Advantages and Disadvantages of an STO/ETO

Funding through STOs brings remarkable benefits to companies, which is also the reason for the expected STO boom in the future. (article)

In February 2019 BaFin allowed the first German STO. In the meantime we have seen some STOs, but only as debt tokens. Equity tokens are not yet allowed in Germany, but in some European countries. Thank's to our international network IR CONSULT can offer equity STOs in Europe.

When listing the advantages and disadvantages as well as the opportunities and risks, of course, you have to differentiate between company and investor.

Advantages Companies:

- fast and cost-effective capital
raising for start-ups and SMEs
- via STO/ETO platform even

worldwide and across all

investor classes
- also suitable for larger
amounts
- long-term capital that does

not have to be repaid
- for nearly all companies
possible
- only a few documents needed
- partly no approvals or

regulations
- partly no right to vote
- sometimes equity similar

- company determines rights of

token owners
- no collaterals necessary
- public awareness is increased
- more and more STO funds
- regulated public offering, also
in the EU
- facilitated follow-up emissions

Disadvantages Companies:

- no placing guarantee
- placement of tokens within a
fixed period of time
- higher transparency through
company documents
- more regulation, KYC & AML
- expenses for STO marketing
and investor relations
- money necessary to finance
the STO realization

Advantages
Investors

- part of the crypto community
- access early in the company
or product life cycle
- access to alternative
investments (VC, start-ups)
- diversification of capital
investment
- participation possible even
with small amounts
- purchase and sale via STO
exchange possible
- high returns through profit
sharing and value creation
- regulated asset class

Disadvantages
Investors

- partly only a few company information available
- maybe too expensive
- possibly low liquidity and high
volatility
- often buying cryptocurrencies
to trade token necessary
- share of profit, or increase in
value uncertain
- up to 100% risk of loss (VC)
- risks in technology: Blockchain, hackers etc.

STO Advisory of
IR CONSULT with
Clear Advantages

The issuance of token (STO/ETO) requires documents and information about the company/project.

We concentrate on European STOs and work with experienced European partners - short distances, faster implementation!

In practice, the following documents have emerged as usual and helpful:

- meaningful website with part for STO investors
- videos and photos to explain the desired projects
- product brochures etc.
- prospectus, approved by an European financial supervisor:
This contains a business plan with details about the company, the
current business, the future project, its financing and the
expected business development.
- possibly more 'Papers' about the technology, patents, legal
matters etc.
- token sale sheet, i. e. details about the number of coins, the timing
of the issue and the rights of the buyer etc.
- STO-marketing documents

The preparation of this company information should be possible within four or five months. Many of these documents can also be used by the company for other purposes, such as loans, M&A, marketing, and so on.

However, despite the partly small amount of documentation, the preparations required a special knowledge for the issue itself, as well as for the subsequent permanent investor relation.

STO/ETO Consulting by IR CONSULT

IR CONSULT can carry out a kind of capital market maturity test (www.boersenreif.de) about the STO/ETO-candidate before the company spend further funds on the preparation of the intended STO.

As the only provider of integrated IPO/STO consulting (www.ipo-advisor.com) we can assist you in

- decision finding pro / contra STO
- project and team management
- selection of the best token economy
- search for a professional crypto lawyer (external)
- token structuring and placing strategy
- assist in the preparation of all necessary documents
- looking for the best IT and STO platform (external)
- supporting the helpful PR work
- STO marketing strategy and selection of the best specialist
- establishing of investor relations
- initiation of STO research or STO rating (external)
- contact for investors and journalist during the STO
- support of the token placing
- post STO investor relations

Highlighting the specialties, solidity and professionalism of the STO candidate is of paramount importance, especially to convince the currently rather negatively focused financial press in Germany.

An STO/ETO candidate benefits from our specialist knowledge as well as our international investor network, which has been established over the last 26 years.

The whole STO project can therefore be implemented even quicker and faster, its placement opportunities increase and the management has enough time for its operational business, the actual basis for the STO.

It remains our goal to realize an IPO in the medium-term and to change the token into shares.

Brief Information about IR CONSULT:

IR CONSULT has been a successful consultant for capital market issues (M&A, VC, PE, etc.) since 1994, as well as for corporate offerings (IPO, corporate bonds) and fundamental investor relations.

As additional information about IR CONSULT you can download our Company Flyer
or visit our websites www.ir-consult.com oder www.ipo-advisor.com.

Capital Market Know-how

Our team consists of
equity analysts, investment bankers, fund managers
and PR specialists.

Ideal Completions

Our consulting spectrum
is rounded off by
efficient financial communication, international cooperation and active participation in various networks (DVFA, bdvb, LinkedIn, Xing etc.).

More than 100 IPOs

Our IRC team has broad experiences from nearly 100 IPOs and over 100 IR mandates in central Europe.

Top References

Numerous and long-standing mandates of well-known stock listed companies underline our successful and clearly focused consulting approach with optimal value for money for our customers.

Contact / Imprint

IR CONSULT invites you to an individual discussion about your individual plans and ideas:

Contact

Alexander Vollet
Telefon: +49 - 6002 – 92042
Mobile: +49 - 172 - 688 4341
Fax: +49 - 3212 – 1355 164
E-Mail: mail@sto-ico.eu

IR CONSULT Alexander Vollet
Am Kirschenberg 43
61239 Ober-Moerlen (near by Frankfurt / Main)
Germany
Tel: +49 - 6002 – 92042

VAT-No.: DE 166 494 726
If you like, we can send you our general business regulations.

Additional websites and information about our services:
https://www.ir-consult.com
https://www.boersenreif.de (only in German)
https://www.investor-relations.eu
https://www.ipo-advisor.com
https://www.crowd-finanzierung.de (only in German)

Imprint (only in German)

© IR CONSULT, 2024

Impressum (Disclaimer) and data protection rules can your find here: https://www.ir-consult.de/kontakt.html

Pictures: (c) Mobirise, Google / IR CONSULT

STO / ETO with IR CONSULT= Pre-IPO-Financing