Coinvest Capital co-led a €2M investment round in Axiology, a FinTech company set to enhance the EU capital markets for businesses and individual investors
Axiology, a Lithuania-based platform for tokenized securities that facilitates the trading of stocks or bonds using Distributed Ledger Technology (DLT), has successfully concluded a €2 million investment round. The round was co-led by Coinvest Capital.
Axiology, a startup specializing in DLT securities trading and settlement infrastructure, is headed by Marius Jurgilas, PhD, a former board member of the Bank of Lithuania. The company secured a €2 million investment in this round from Coinvest Capital, Baltic Sandbox Ventures, and accredited private co-investors. The Axiology core founding team consists of Andrius Bartminas, Marius Jurgilas, Andrius Mamontovas, and Andrius Kašuba.
The investment will be used for the development of a fully functional, regulatory-compliant alternative capital market infrastructure. This initiative positions Axiology as one of the first tokenized financial securities infrastructures in the EU. It aims to enable more efficient capital market transactions through a robust trading and settlement system utilizing Distributed Ledger Technology (DLT).
The deal was co-led by two female VCs – Viktorija Trimbel, Managing Director at Coinvest Capital, and Sandra Golbreich, General Partner at Baltic Sandbox Ventures.
“We’ve been impressed by the caliber of the founding team, their expertise in the financial markets, and their ability to explain very complicated challenges and solutions,” says Viktorija Trimbel, who is also a Board member at LitBAN (Lithuanian Business Angel Network). “The ambition of Axiology’s founders to enable safe, efficient, and affordable access to the capital markets, matching companies and investors, makes an excellent fit with the Fund’s mandate to foster the development of the financing ecosystem and fill market gaps.”
A group of accredited private co-investors contributed with Coinvest capital a combined EUR 1.59 million, including the Fund’s share of EUR 0.47 million.
The investors’ group enjoys a unique profit sharing incentive – in case of a successful exit, the Fund’s return is capped at only 6% per annum and all excess profits are redistributed to co-investors, enhancing their returns. For example, Interactio exit in 2021 increase angel returns from 9 times to 34 times under this investment scheme.
“Innovation fuels the future of finance. Tokenized securities are a key part of that future, both in the public and private markets. There are major technical, product, and business challenges to building toward that future, but that is also why it is a compelling opportunity for the right team to tackle it. Axiology has the ability, drive, and vision to lead this change, making finance more equitable, efficient, and transparent. We’re glad to be backing Axiology’s mission to redefine the future of the EU’s financial landscape,” says Sandra Golbreich.
Private co-investors include seasoned Lithuanian and international business angels, two private angel syndicates, and a private early-stage VC fund Lemonade Stand, which invests in pre-seed startups across the Baltics and Eastern Europe and has joined Coinvest Capital profit-sharing investment model for the first time.
Business angels highlight Axiology’s mission and the founders’ experience as the key drivers motivating their participation in the deal. They are not only contributing capital but also bringing industry expertise, exemplified by Vytenis Pavalkis, founder of the FinTech company Paysolut, which was acquired by the global financial technology company SumUp in 2021.
Business angel Darius Antanaitis says: “One of the most important qualities of being a citizen of a civilised world is to be responsible for one’s present and future. Axiology solutions provide just that – the freedom to plan for our future, to ensure financial security and stability. It is because of these opportunities that I am so proud to be able to contribute to the success story of Axiology and their clients.”
Vladas Lašas, one of the most prominent Lithuanian business angels, adds: “Startup founders are most important in my investment decisions. Marius Jurgilas’ knowledge, experience and personality are the core traits required for a successful entrepreneur”
The deal is joined by two private angel syndicates, one run by seasoned banking and insurance industry leader Mindaugas Jusius, and another by Justinas Pašys, former Managing Director of LitBAN. “Our 6NGLS syndicate of 33 angels has decided to back Axiology with a combined EUR 0,34 million contribution, because we believe the team and their blockchain solution will democratize investments in bonds for retail investors, overcoming current market barriers such as high transaction costs and complex processes. A new Distributed Ledger Technology (DLT) Pilot Regime in the EU is being launched enabling compliant application of DLT in financial markets.”
Coinvest Capital is an evergreen sovereign VC fund, co-investing up to EUR 1,6 million per startup at early-to-series-A stages, with business angels and other private or corporate VC funds. Currently we have EUR 13,8 million dry powder, AUM of EUR 25,5 million and 32 portfolio companies, including two exits.
On last year’s Startup Fair Axiology impressed the judges and secured a special prize of 5,000 USD worth of Amazon Web Services credits by Cloudvisor and up to 125,000 EUR investment into the selected team by Baltic Sandbox Ventures.