After yesterday’s thumping $100 billion market debut from crypto marketplace, Coinbase, today sees the arrival of a well-timed fund raise. Non-Fungible Tokens (NFTs) are the prime medium by which super-trendy digital art is sold.
NFT Investments, an investment company specialising in the non-fungible token (NFT), has raised $48 million (approx £35 million), more than three times initially planned, for its flotation on the Aquis Stock Exchange Growth Market (Access segment), valuing the Company at a market capitalisation of £50 million.
The company initially planned to raise £10 million, however, it has reportedly doubled the target to £20 million.
As per the company, this move comes in response to strong investor interest. Due to the strong demand, the Company has now completed the placing of 700 million new ordinary shares at 5p each and expects to start trading on the Aquis Stock Exchange on April 16.
The company is being advised by First Sentinel Corporate Finance and its joint brokers are Novum Securities and Tennyson Securities.
Established by the co-founders of Argo Blockchain plc, Jonathan Bixby and Mike Edwards, NFT Investments was set up to invest in NFTs directly and in companies or funds that have exposure to NFTs and blockchain technology.
An NFT is a special, one-of-a-kind crypto asset that enables collectors to authenticate, own and trade original authenticated versions of unique digital goods on the blockchain.
Jonathan Bixby, Executive Chairman of NFT Investments, said: “It is deeply gratifying to receive strong interest from a wide range of institutional and private investors who share our belief in the vast growth potential for NFTs, just as the cryptocurrency sector has shown so far. We have upsized our offer to broaden and democratise access to this hard-to-reach market.
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Historical Performance And IFISA Process Guide
That figure is the result of over £20 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.