21.finance AG, which is based in Liechtenstein, is to get a new shareholder.
The Liechtenstein Bank Frick & Co. AG is acquiring just over 25% of the fintech group 21.finance, whose area2Invest platform connects both investors and issuers. The strategic investment by Bank Frick is effected through a capital increase at 21.finance.
21.finance offers capital-seeking companies a wide range of financing solutions and provides access to equity, mezzanine and debt capital. Its area2Invest platform supports issues primarily in the European Economic Area (EEA) and in Switzerland.
The focus of 21.finance lies on the systematic digitalisation and automation of processes, subject to compliance with statutory and regulatory requirements. Unlisted issuers also gain easier access to capital through 21.finance.
Registered and identified issuers can present and offer interested investors their structured financing proposals on area2Invest on a public or private basis (public or private placements, respectively).
At the same time, strict compliance with anti-money laundering and anti-terrorism financing standards is part of all digitalised processes, both for issuers and investors. The platform also offers categorisation of investors in line with MiFID II provisions.
21.finance targets all investor groups. “Thanks to intelligent processes, we can present suitable offers to interested investors”, explains Max J. Heinzle, co-founder and CEO of 21.finance AG.
“Issuers must meet specific information and communication obligations”, says Heinzle. “The increased transparency plus the possibility of interaction are key defining features for issuers and create confidence among investors. The communication and reporting obligations also apply after the financing has been concluded”, notes Heinzle. In a further phase, area2Invest also intends to offer tokenised financial instruments.
“Bank Frick is intensively involved in blockchain banking. The transparent distribution of tokenised financial products is a strong argument for us taking a stake in 21.finance ”, says Raphael Haldner, Head of Funds and Issues at Bank Frick. “The issuer and investor portal is an ideal fit with our digitalisation strategy, which focuses on financial intermediaries. For those intermediaries that are our clients, we offer an attractive information and distribution channel for their financial products. Moreover, we have the option of presenting and distributing our own products there.”
Raphael Haldner was elected onto the Board of Directors of 21.finance following Bank Frick’s investment: “I am impressed with the professionalism and determination shown by 21.finance in dealing with the complex challenges of creating a platform that not only meets regulatory requirements but, due to its design, also offers exciting possibilities in terms of structuring and distribution.”
In the coming months, 21.finance will be further expanding the functionality of its platform to connect issuers and investors even more efficiently.
“Our aim is to grow and establish area2Invest as the leading multi-asset investment platform in Europe. To do this, we have found exactly the right strategic partner in Bank Frick and its EEA-wide licence as a universal bank”, concludes Max J. Heinzle.