Stellero is a blockchain startup that aims to change the financial industry by solving the liquidity problem that exists in most assets. The company is currently in the fundraising stage using the Security Token Offering (STO) model.
How Stellero Got Here
- The company was started by a team of 5 people with vast experience in the technology sector.
- The founders approached leading companies like BDO and Ambisafe to develop the concept.
- The company aims to launch its digital asset management platform in December 2019.
The Problem Stellero is Solving
Stellero aims to disrupt the financial industry by unlocking the value of more than $500 trillion illiquid assets around the world. The founders believe that value can be created by tokenizing these illiquid assets. For example, the real estate industry is one of the most illiquid ones because of how difficult it is to sell or liquidate the projects.
The company also want to remove the many barriers that global investors have. For example, it is almost impossible for a person in the emerging markets to invest in American companies and other assets (note that Abra is offering an interesting solution for this problem based on Bitcoin). With digital tokens, everyone around the world can invest in global assets, which will unlock value in all markets. The company will do all this in line with the existing regulations.
How Stellero is Solving This Problem
Unlocking value in such vast assets is not an easy thing. The company aims to do this in three ways. First, the blockchain technology behind it will tokenize illiquid assets into fractional holdings. It will then secure capital from private and institutional investors in accordance to the European, American, and Asian regulations.
It will then issue smart contracts to issue innovative asset-backed securities. By doing this, it will be possible for people to invest in assets that cannot be invested in at the moment. In an interview, Dror Medalion, one of the co-founders of the company said that:
The current model of raising capital is broken such that most individual investors can’t access it like the big guys. With Stellero, we hope that our technology will unlock value and create wealth to millions of investors from around the world.
What Stage is Stellero Is?
Stellero is a relatively young company that was initially bootstrapped by the founders. To accelerate growth and improve the technology behind it, the company is now raising funds through a security token offering (STO). This fundraising will go on until August 2019 when it will open its first hub in Switzerland. The final product will go live in December 2019.
The company’s goal is to become the biggest alternative investment banking platform in the world. To achieve that, the company has invested vast resources in creating a solid blockchain technology that will allow global investors invest in illiquid assets. To grow, the company is creating hubs in leading financial cities in Europe, Asia, and the United States. It will use these hubs to fundraise for the various investments it will find.
Financially, the company expects to generate revenue of more than $752k in the first year. In the fifth year, the company expects to have revenue of more than $8.7 million.
Stellero was bootstrapped by the founders, who contributed their funds to start and run the company. As the process continued, the company launched its STO to enable it raise more funds to accelerate the launch and the marketing. Other than the STO, the company has not raised any capital from VCs.
Some of the companies attempting to tokenize and democratize illiquid assets are:
Stellero was started in Israel and is currently headquartered in Spain. As a blockchain company, Stellero targets clients from around the world.
Stellero is aiming to change the investment world by creating a technology that will facilitate investing in illiquid assets like land and real estate. However, while this industry has a room for disruption, it will not be easy because the company will need to convince investors about its potential.
Kasper is our expert for saving, investing and bank accounts. Kasper holds an MSc in Mathematics and worked with Mercedes-Benz and the Dutch tax authorities.