New partner offers start-up financing via digital company shares

Release date: 30 Oct 2019 | Deutsche Börse Cash Market

New partner offers start-up financing via digital company shares

Deutsche Börse Venture Network cooperates with Cashlink / Regulated issuing of digital securities opens up new opportunity for start-up financing

Through its partner Cashlink, Deutsche Börse Venture Network offers its members a new financing option using distributed ledger technology (DLT): from now on, all members of the network will receive discounted access to the issue of digital securities. 

If investors want to invest in a company, they can execute the entire investment via the Cashlink digital investment process thereby optimising transaction costs and processing. The digital securities are freely transferable and tradable profit participation rights without voting rights, but are economically equivalent to a participation in a company. Thus, the investor participates fully in the exit proceeds or possible distributions of the company. The sale of digital securities is aimed exclusively at professional investors such as venture capital funds, business angels or high-net-worth individuals.

"With the new offer from our partner, we are simplifying the raising of capital for start-ups from our network, all within a regulated framework. At the same time, we are intensifying our cooperation with Cashlink, who have been based in our FinTech Hub in Frankfurt since 2016,” says Peter Fricke, head of Deutsche Börse Venture Network.

“The digital securities are suitable for various purposes, for instance as an alternative to conventional venture capital financing, as digital employee participation, as a digital representation of venture capital funds or for investment by non-European investors,” explains Cashlink CEO Michael Duttlinger.

After Deutsche Handelsbank, High-Tech Gründerfonds and Tech-Investmentbank GP Bullhound, Cashlink is further partner in the network. Deutsche Börse is continuously expanding its ecosystem for growth. The aim is to offer start-ups a wide range of financing options that suit their particular situation.

About Deutsche Börse Venture Network

Deutsche Börse Venture Network was founded in 2015 and is Europe's leading ecosystem for financing growth companies. The network offers its members comprehensive and exclusive services in three areas: capital, network and training. Its members include more than 190 companies and over 375 international investors. In 97 financing rounds, the start-ups represented in the network raised a total of around 3.6 billion US dollars, and seven companies are now listed on the Frankfurt Stock Exchange.

About Cashlink

Cashlink is a financial technology company (fintech) in the field of digital securities founded in 2016 by Michael Duttlinger, Lars Olsson, Jonas Haag and Niklas Baumstark. The innovative team has one goal in mind: the digitisation of easily transferable corporate investments. It is supported by investors such as Finlab AG. Cashlink cooperates with numerous partners such as the international law firm Ashurst. Cashlink is a founding member of the International Token Standardization Association (ITSA), the European Forum “International Association for Trusted Blockchain Applications” (INATBA) as well as the Hesse branch of the Blockchain Bundesverband.