In our continuous pursuit of providing more value to the entrepreneurs and SMEs, we’re super happy to announce that we’ve launched the ProspectusApp beta version to the public. ProspectusApp is a web app for companies raising capital, and more specifically, targeted to the security token offering market. It does not have to be a security token offering though, as the rules and regulations are the same for any kind of offering done according to the European Prospectus Regulation growth prospectus regime.
How does it work?
After the registration you’ll face a dashboard where you have an option to either work with a non-equity (debt obligation like bond) prospectus or equity prospectus. In many ways they are very similar, but there are differences, hence, we’ve divided the documents into two different categories. After choosing the type of prospectus (offering) you’ll be doing, you get access to three different documents:
- Registration document
- Securities note
Each of them is important for the final result, which is a compliant investment document in Europe. Growth prospectus offerings are limited to 20m€, and we believe it is a sufficiently high cap for the most offerings done by the SMEs. By clicking on the documents you’ll find guidelines and questions and “pre-fill text” buttons. The questions guide you through the document, and by answering these questions, you’ll create the structure and the first draft of your investment prospectus. It’s by no means an easy task, but you would need to do it anyway if you’d go to a law firm to begin the process, and pay tens of thousands of legal fees in due process. Additionally, many questions (but not all) have the “pre-fill buttons” — by clicking the button, you’ll get a sample text you can modify so it’s related to your own offering and business.
We are not claiming that you’ll have a usable document by the end of the process. It’s likely that you don’t know how to answer to some of the questions, and the final formatting and touches are done by the law firm. You still have legal costs, but the fees are reduced by the work you’ve already done. In our estimation, the amount you can save is between 10 000€ to 30 000€ dependent on the Member State (the prices of preparing the prospectus differ more than 3-fold for example in Estonia and Luxembourg). Moreover, we’ve added a marketplace to the app where you can find law firms to cooperate with. They can preview your documents (if you allow them to) and provide a price for modifying your prospectus. Currently, we only have our own firm listed on the marketplace in the beta version, but we’re in discussions with several law firms to be added to the marketplace in the near future.
Comistar provides business, legal and tax support for e-residency companies. Our core focus is on Fintech licensing, e-commerce companies, blockchain industry and affiliate marketers. We’ve been operating for over 5 years and have helped more than 300 companies to get started in Estonia.