Venture Capital Firms Hack VC and Blockchange Ventures Invest $12.7 Million in Series A Funding for Web3 Startup Dinari
San Francisco-based investment platform Dinari has made significant strides in the world of tokenized stock trading, offering a unique opportunity for investors outside the U.S. The company, which has secured regulatory approval from the SEC to operate as a broker-dealer, recently closed a Series A funding round led by Hack VC and Blockchange Ventures, bringing its total raised to $22.65 million.
Dinari's innovative approach involves tokenizing traditional shares into digital tokens, known as dShares. Each dShare is 1:1 backed by actual stocks, providing investors with a direct ownership stake in U.S. companies such as Apple and Google. The company uses blockchain technology to facilitate faster and more secure transactions, allowing for continuous trading without traditional market hours constraints.
Currently, Dinari's system is primarily focused on U.S. markets, but its technology and regulatory approvals could pave the way for future expansion to international investors. To achieve this, Dinari would need to obtain additional regulatory approvals or comply with international standards. Expanding to international markets might also involve partnerships with local brokerages or financial institutions to facilitate regulatory compliance and access to U.S. stocks.
The fresh capital raised will be used to enhance regulation compliance in the jurisdictions Dinari operates, potentially opening up its platform to a global user base. Dinari's blockchain-based system could also streamline cross-border trading, reducing barriers and costs associated with traditional systems.
"We aim to make investing in U.S. stocks a more viable option for people living outside of the U.S.," said Gabriel Otte, co-founder and CEO of Dinari. The company offers an API integration that allows financial platforms to enable investing in U.S. stocks, further expanding its reach.
The fundraising round also attracted participation from VanEck Ventures, F-Prime, and the Avalanche Fund. Dinari's customer base primarily consists of investors from Latin America, specifically Brazil and Argentina, but the company has also been building a user base in Southeast Asia and Africa.
Dinari previously raised $7.5 million in a seed round announced in August 2023. With this new funding, the company is well-positioned to continue its mission of democratizing access to U.S. stock markets for investors worldwide.
Dinari's blockchain technology could enable news of international expansion, potentially allowing investors from various countries to invest in U.S. finance through web3-based tokenized stocks. The fresh investment will be instrumental in achieving regulatory compliance worldwide, helping Dinari's business technology to streamline cross-border trading and create a more accessible global user base. Dinari aims to use its API integration to collaborate with financial platforms, expanding its reach beyond its current customer base in Latin America, Southeast Asia, and Africa.
