Letter to Shareholders
Dear Shareholders,
With the listing of our stock (ISIN DE000A40ET88 / WKN A40ET8 / TickerFXT) on the m:access segment of the Munich Stock Exchange, the FINEXITY Group is embarking on a new and landmark chapter in its journey. This milestone highlights our dedication to establishing a strong and lasting presence in the capital markets, while driving sustainable, long-term growth for our shareholders and partners. Our focus remains on creating enduring shareholder value.
Our vision is clear: “Driving opportunities in Private Markets. Creating the leading exchange for Digital Assets.” Learn more about our mission and strategy here: Introduction to FINEXITY’s Vision.
The momentum in tokenized securities remains unbroken. According to market studies, the global volume is expected to rise from USD 600 billion in 2024 to nearly USD 11 trillion by 2030, representing an average annual growth rate of more than 60 percent1. Regulation, technological innovation, and increasing demand from institutional as well as private investors are the primary drivers of this trend. At the same time, tokenization is expected to reduce global transaction costs by more than EUR 4 billion by 20302. These developments confirm that we are operating in one of the most dynamic and future-oriented segments of the financial markets.
Since our foundation in 2018, the FINEXITY Group and its integrated companies have raised more than EUR 25 million in growth capital. To finance the next stage of expansion, we are currently securing the necessary resources and – subject to closing conditions, in particular the ownership control procedure – will acquire 90.1% of Effecta GmbH, a licensed securities institution and liability umbrella for online securities distribution in Germany.
Through targeted investments, we are building a resilient ecosystem that connects issuers, trading partners, and investors. With more than 50 international issuers, 250 listings, and over 14,000 registered private and professional investors, our OTC-platform ecosystem is already among the leading trading and infrastructure providers for tokenized Private Market investments. By integrating Effecta’s network of more than 45 tied agents, we will on a pro forma basis add around 70,000 registered investors – a significant synergy that strengthens our ecosystem and creates value for all partners.
The stock exchange listing is a strategic milestone and a logical nextstep on our growth path. As a company with a clear expansion strategy, it enables us to scale more efficiently, broaden our partnerships, and secure flexible access to capital. Our key objectives are:
● Transparency and credibility: Collaborating with leading financial institutions - from local savings (Sparkassen) and cooperative (Volksbanken) banks to international asset managers – requires a high degree of structure, transparency, and regulatory clarity. A stock exchange listing reduces the complexity of due diligence processes and accelerates decision-making.
● Driving inorganic growth: The acquisition of Crowdli earlier this year and the planned majority acquisition of Effecta underline our strategy of supplementing organic growth with targeted acquisitions. As a listed company, we can now also use our shares as acquisition currency, improving transaction security and lowering capital requirements.
● Liquidity and broader investor access: Previous financing rounds were largely limited to professional investors with minimum tickets of EUR 100,000. The listing provides liquidity for existing shareholders and opens the door to a broader group of investors – with simpler, more transparent, and more flexible access.
● Access to growth capital: As a fast-growing company, we need the ability to raise equity flexibly – for both organic expansion and strategic acquisitions. The listing is a key lever to strengthen this ability.
Looking ahead, the next critical milestones on our path to sustainable long-term value creation include:
● Application for the DLT TSS license: This EU-wide license will allow us to transform our trading platform into a fully regulated Multilateral Trading Facility (MTF) with integrated settlement. It will take our current OTC distribution model to the next technological and regulatory level, increase scalability, and enable radical cost efficiencies in settlement.
● Scaling through the successful integration of acquisitions: Building on the integration of Crowdli, the acquisition of Effecta will unlock significant infrastructure (merge of two infrastructures), distribution (+45 tied agents), and revenue synergies. It enhances our position across the entire value chain, broadens our service offering, and creates value for all participants in our ecosystem, including issuers, trading partners (tied agents), and investors.
● International expansion: Strengthening our presence in the United Arab Emirates, with a particular focus on launching Private Market funds that provide professional investors with indirect exposure to tokenized Private Market securities.
As management, we are fully committed – both operationally and financially – with all shares held directly or through controlled entities subject to a 30-month lock-up until March 4, 2028. In addition, our strategic investors, business angels, and venture capital partners have agreed to lock-up periods of up to 24 months on the majority of their holdings until August 4,2027. This clear alignment demonstrates our joint confidence in FINEXITY’s business model and long-term growth trajectory.
Our ambition is to develop FINEXITY into the leading exchange for tokenized Private Market investments. At the heart of this ambition is the value we create: for our platform participants as well as for you, our shareholders.
We sincerely thank you for your years of trust, commitment, and support. Your confidence and engagement have been instrumental in shaping FINEXITY into the company it is today, and we are grateful to have you alongside us as we embark on this next chapter. Now, it’s time to roll up our sleeves and make it happen!
Sincerely,
Paul Huelsmann
CEO FINEXITY Group
1 Tokenization: 2024 Marks an Acceleration in Digital Assets – FERI Cognitive Finance Institute (05/2024)
2 Tokenization: The future of financial markets?– Roland Berger (12/2021)