European regulatory authorities, including ESMA and BaFin, have published warnings targeted at investors participating in and firms involved in ICOs. While token sales may become a valuable and important financing alternative for early stage companies in selected industries, they will be under close scrutiny by regulatory authorities throughout Europe.
Around 300 guests accepted the invitation to our grand opening on November 9, where the focus was on ICOs and crypto currencies.
Germany has a favorable tax regime for corporate investors such as VCs investing via a corporation. Capital gains derived from an exit of shares in a corporation are usually tax-exempted in Germany.
Even though portfolio companies usually reinvest their profits in future growth, occasionally dividends are distributed to corporate investors. Such dividends are generally exempted from corporate income tax (CIT) in Germany.
While Initial Coin Offerings (ICOs) have already become a notable form of financing for early stage blockchain-based startup companies, SMP is assessing their potential impact on the world of venture capital in general.
Initial Coin Offerings (ICOs) are the latest example for the young tech ventures' creativity and investors' willingness to participate in experimental, risky and (allegedly) unregulated financial innovation.