German Venture Capital Firm Invests in Ripple Ahead of IPO

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According to a press release yesterday, German Venture capitalist firm tokentus investment AG has invested in Ripple, a US company specializing in blockchain payments.

In accordance with the company’s statement, it invested $100,000 in Ripple through a Special Purpose Vehicle (SPV), a business entity designed to enable investors with less capital to pool their resources into one firm.

It should be noted that it was not originally a direct investment. Oliver Michel, CEO of tokentus, says that the SPV will be dissolved, and its Ripple shares will be transferred to tokentus when Ripple goes public through an Initial Public Offering (IPO). The CEO of tokentus claimed that the company’s investment would give it a competitive edge before Ripple’s first public offering (IPO).

“In our opinion, Ripple is among the most established and significant companies in the blockchain space,” Michel said. “According to the company, an IPO is planned in perspective, in which we naturally want to be an investor. As part of its IPO, the SPV would be dissolved and its shares of Ripple would be registered and directly transferred to tokentus. This puts us in a good position.”

However, Benedikt Schulz, the company’s investment manager, revealed that the corporation thought the XRPL had potential as a platform for smart contracts.

“We see great future potential for Ripple, especially if so-called smart contracts, i.e. digital contracts based on the blockchain, continue to gain acceptance in Ripple technology, which we are convinced of,” Schulz said.

Notably, tokentus is a German venture capital firm specializing in blockchain. Additionally, it has invested $50,000 into Polysign, a firm that offers institutional clients digital asset custody and has close ties to Ripple. The company previously made a $1.35 million investment in the now-defunct crypto lender Celsius.

Read article: Ripple vs. SEC: The Cryptocurrency Trial of the Century

Ripple Shares Are In High Demand

It is important to note that Ripple shares are in strong demand, as previously reported, given that the business is the top seller on the private investment platform Linqto. Notably, as anticipated by the company’s director of member investments, Nick Burrafato, the last block of Ripple shares on the platform sold out in less than 24 hours.

Having run out of Ripple for the past 12+ hours, we’re excited to announce that we’ve secured a limited block of shares—similar in size to the previous block that sold out in under 24 hours. 1/2

— Linqto (@linqtoinc) January 13, 2023

Investments in privately held businesses like Ripple are only open to accredited US investors, as was noted in the previous article. This is because private shares are significantly less liquid than public shares. Therefore, holding private shares carries a higher level of risk. However, as is typically the case in finance, they also provide a commensurately large potential for reward because investors can sell their shares at much higher prices when the business goes public.
Finance Author, Linda P. Jones, discusses how to become an accredited investor in a blog post.

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