Arcton - Project Breakdown | Revelo Intel


Up to date as of December 27, 2023


Arcton emerges as a crypto-native crowdfunding platform for startups, unveiling a novel asset class for Web 3 participants: Start-up Shares. This unique asset class is accessed via startup IPOs, effectively democratizing access to startup investments and bringing revenue from traditional companies on-chain. 

Conventional investment in Web2 start-ups demands substantial capital, often around $50,000 per venture. Additionally, investors typically endure a decade-long waiting period before divesting their shares. As a result, only a mere 3% of the population can engage in this appealing asset class. This is the problem that Arcton is tackling: to make startup investing easy and accessible for retail investors.

In a startup IPO, everyone can start investing with small sums of money, starting with $100. After the raise, investors can sell their liquid shares on a DEX, which solves the illiquidity problem that is often seen when investing in startups. For instance, retail investors cannot always afford to be locked in a position for more than 10 years, and they might need to access their capital for something else.

Current trading venues have also failed to provide liquidity for startups, For instance, stock exchanges require a market cap of at least $500 million, which is out of reach for most startups. Nowadays, thanks to the Swiss DLT Bill and the advent of DEXs, there is a regulatory-compliant way to allow for shares tokenization and make startup investing more inclusive.

By building a crowd-investing platform on top of blockchain technology, Arcton addresses the challenge of trading illiquid startup shares. The vision is that everyone should be able to invest in startups with the same flexibility as if it was a publicly listed company. 

Arcton achieves this with 3 notable features:

Arcton is reimagining crowdfunding by tokenizing startup shares and making them available for trading at any time. By democratizing startup investments through the DLT Bill, Arcton grants investors the liberty to trade shares without constraints. Digital shares have exactly the same rights as traditional shares, with the only difference being the fact that they are issued on a blockchain.

Startup IPOs

Arcton introduces an avenue for investors to engage in start-up investments through Initial Public Offerings (IPOs).

Arcton primarily features Web2 start-ups on its platform, and each listed startup undergoes a meticulous due diligence process to ensure quality and viability. Below you can find what the IPO process is like: 

      1. Tokenization: Shares are legally tokenized under Swiss Law.

      2. Public Offering: Arcton opens shares to the public, providing accessibility to a wide array of investors.

      3. Investment: Shareholders acquire start-up shares using USDC or FIAT (CHF or EUR), facilitating seamless investment transactions.

      4. Registry Entry: The newly minted shares are registered with the Commercial Registry following approval from a Swiss notary and the Commercial Register.

      5. Liquidity Pool: Start-ups establish liquidity pools on Camelot, enhancing trading opportunities for shareholders.

      6. Claim and Sell: Shareholders gain the ability to claim their shares and subsequently sell them in the secondary market whenever they want.

After each IPO, the startup provides the initial liquidity to the pool. As soon as the Swiss Commercial Register has entered the new shares into its registry, the pool will be created, and liquidity will be seeded. 

The liquidity pool can only be seeded after the shares have validly been created according to Swiss law, which requires the authorization of a public notary and the Swiss Commercial Register. This liquidity is locked, guaranteeing a stable and deep pool of funds.

Additionally, Arcton has designed an incentive program for each startup. This allows liquidity providers to earn additional rewards. Users receive additional shares of the start-up for which they provide liquidity.

When users provide liquidity, their positions are tokenized as non-fungible staked positions or spNFTs. These positions can then be deposited into the Camelot Nitro Pool in order to participate in the incentive program. 

  1. The user creates a position, by providing start-up shares and stablecoin. 
  2. The deposit is sent to a specific corresponding NFTPool contract, and the user receives a staking position NFT. This spNFT can be viewed as a kind of deposit receipt.
  3. The users can deposit their spNFT into the Camelot Nitro Pool.
  4. The user receives additional rewards by participating in the incentive program of the respective startup. 

Arcton also addresses the issue of limited supply that is inflated later on, diluting existing holders. Unlike standard tokens, where inflation is often a big concern for investors, startup shares can only be created according to a regulated process. 

Startup team members/founders’ shares are not tokenized, so they can’t sell them on the secondary market. Only the shares sold during the IPO are tokenized.

DLT Bill Compliance

The Swiss Distributed Ledger Technology Bill, or the DLT Bill, was enacted in 2021. Arcton’s digital shares adhere to this Swiss law in order to safeguard investor rights and hold issues to legal standards. More specifically, the DLT Act is applicable to every entity, whether it be a company, organization, or individual operating within the jurisdiction.

The DLT Bill defines digital securities as “electronic records that represent a claim on the issuer.” This means that they can be used to represent ownership of assets, such as shares, bonds, or derivatives. The law also provides for the creation of DLT trading facilities, which are platforms that allow for the trading of digital securities.

The introduction of this bill has effectively addressed numerous gaps in the country’s legal framework and has established greater legal security for both crypto assets and custodians in Switzerland. The Swiss Blockchain Act has far-reaching implications, particularly in the areas of tokenization, investments, and capital markets. Notably, the DLT Act provides clear definitions for electronic records and introduces a regulatory framework to ensure their proper utilization.

This legislation has paved the way for the formal creation of blockchain-based digital assets, allowing Switzerland to become the first major country to make this possible. In fact, the Bill enables the tokenization of any sort of RWA (Real World Asset). Additionally, the DLT law delineates the operational guidelines and requirements for private entities using DLT technology. For instance, it mandates that all companies operating in Switzerland disclose information about their activities to ensure transparency.

DLT Securities

Crypto regulation in Switzerland, introduced in 2021 under the DLT Law, is essential for investor trust and fraud prevention. It enables traditional securities to exist as security tokens on the blockchain, covering assets like shares and bonds. This innovation falls into three categories: processes, infrastructure, and innovation, with a focus on connecting traditional stocks with digital assets. This is known as “ledger-based securities” or DLT securities.

However, the DLT law has yet to fully meet expectations, leading to incremental improvements. The future of Swiss crypto regulation seems to favor Decentralized Finance (DeFi), which removes intermediaries and automates financial products.

To be precise, Switzerland now allows asset tokenization and tokenization of securities for asset storage, transfer, and trading. Financial institutions can directly transfer DLT securities on a blockchain, eliminating the need for traditional written documents, but requiring consent from all involved parties.

Legal Protection

Digital shares are bolstered by the robust legal framework of the DLT Bill, assuring investor protection within a regulated environment. Under the bill, all entities engaging in securities trading using DLT technology are mandated to register with the Swiss Financial Market Supervisory Authority (FINMA). 

The Tokenization Process

When acquiring shares of a startup, investors receive tokenized shares. Arcton’s tokenization process underscores transparency, legal compliance, and seamless integration with Swiss law. By purchasing tokenized shares, investors become shareholders of that company. 

The tokenization process involves the following steps:

Swiss Law and Tokenization

Token Distribution

In a typical start-up IPO, the distribution of tokens (shares) is structured as follows:

Following the public sale’s conclusion, the Camelot Nitro Pool is funded, initiating the liquidity mining program. Liquidity mining rewards are dispensed as additional start-up shares. These newly minted shares are generated during the public sale and categorized as treasury shares. Depositors progressively acquire start-up shares over a four-year duration, promoting engagement.

When it comes to the team allocation strategy, the startup’s team does not receive tokenized shares. Instead, team members hold non-tokenized shares, non-tradeable in the market. This approach is implemented to manage token supply in the secondary market. Hence, participation in the secondary market is limited to primary market participants (or their buyers) and liquidity miners, excluding team members.

When it comes to minting new shares, legal provisions enable companies to create new shares only under certain conditions. This includes shareholder resolutions and subscription rights offered to existing shareholders. Existing shareholders possess the right to contest this decision, as per Art. 706 of the Swiss Code of Obligations.

Ownership Assurance

With digital shares, ownership is unequivocally established, eliminating concerns over misplaced paper documents and providing a clear record of ownership.

Investors must possess a wallet to manage their digital shares. This wallet empowers you to directly control shares, facilitating effortless transfers and receipts.


Startup investing primarily aims to achieve an exit, which commonly involves selling the entire startup to another company within 5-10 years from the initial investment. Alternatively, startups may pursue an exit strategy by listing their shares on a traditional stock exchange, such as NASDAQ.

The process is as follows:

The $ARC token

The Arcton Sharedrop was introduced on October 16, 2023.

Unlike traditional airdrops that distribute utility or governance tokens, Arcton’s sharedrop rewards early backers with actual Arcton shares, granting them shareholder rights such as dividends, voting and proceeds of the sale of the company.  The Sharedrop rewards Arcton’s earliest users and supporters of their first start-up IPO, Money Masters, receiving $ARC tokens as a reward.

The $ARC token is a share of MetaOne AG, the company operating the Arcton platform. By participating in the sharedrop, investors become a shareholder of MetaOne AG. The functionality of this token is defined by Swiss law.

The allocation will be as follows:

The $ARCH shares will only be distributed after the Money Masters shares has been released. As the sharedrop is part of a private round, a liquidity pool will not be setup, with vesting and release only 6 months after Arcton’s IPO.

Why the Project was Created

The mission of democratizing startup investments is backed by the belief that everyone should have access, not just the top 3% of wealthy individuals. By utilizing blockchain and the DLT Bill, Arcton empowers individuals to invest and trade startup shares freely. At the same time, having available liquidity to trade shares on DEXs will help to solve the liquidity problem associated with traditional startup shares. Retail investors will be able to freely trade their shares whenever they want in a permissionless manner and not have to wait years to be able to cash out.

Democratizing Access to Startup Investing

Arcton’s inception arose from dissatisfaction with existing solutions, characterized by high entry barriers, lengthy lock-up periods, and inadequate startup vetting. Additionally, the general perception of start-up investing was that they were considered risky and exclusive only to well-connected or high-networth individuals. 

Startup investing is a high-risk and high-reward endeavor. The lengthy lock-up periods mean that participants’ funds would be stuck in times of emergencies, and they would not have any control during that period. As a result, these long periods are better suited for bigger funds and Venture Capitalists (VCs), who have a much longer timeframe when it comes to investing in startups. Historically, this has worked against retail individuals, who have a much smaller float and timeframe due to short-term necessities.

Solving the Liquidity Problem

Crowd-investing does not solve this problem either. While you might be able to invest in startups via crowd-investing platforms, this does not solve the liquidity problem. As a result, investors will still have a hard time exiting their positions and will remain locked up in their investments for a multi-year period of time. This makes it impossible for investors to have predictability or access their capital for emergencies or other uses. The opportunity cost of this loss of control can be quite high, leaving investors at the mercy of external platforms and missing out on other opportunities.

The Marketplace Void

While investing through crowdfunding platforms might look like a democratized process, this is not necessarily the case. Those investors who choose to invest in startups often end up having problems when they want to sell shares. In fact, there is no such thing as a centralized marketplace for selling illiquid startup shares. 

Stock exchanges are the go-to place for liquidity, but not all companies are listed there. Not only that, but they often operate on obsolete tech infrastructure and legacy systems that result in high costs, exceeding startup budgets. In addition, there are regulatory barriers, and laws are also not caught up in most jurisdictions. Many jurisdictions only allow accredited investors to access start-up investments, compounded by geographic restrictions. 

Hence, while it is possible to invest in startups via crowd-investing, the capital of investors could be stagnant for a decade or even more. As a result, the liquidity is tied to a future event – an IPO or a trade sale. For instance, the past 20 years show that the median time to exit has increased, while the number of deals has decreased, making this problem even worse.

Arcton’s Solution

With its strategic approach to startup investments, Arcton aims to disrupt the market by providing accessible and liquid startup investment opportunities, providing the following benefits to retail investors and startups:

Sector Outlook

Arcton belongs to the market sector of equity tokenization. Arcton’s approach involves transforming conventional startup equity into digital tokens, leveraging the security and efficiency provided by blockchain technology.

Present-day giants were once startups, making startups a highly successful asset class in recent times. The global venture capital industry has expanded significantly, growing 20 times to reach $580 billion since 2002. The value proposition is to democratize access to startup investing, unlocking the potential to invest in startups with as little as $100.

Some examples of well-known startup investors/venture capitalists and their assets under management (AUM) include:

However, it is almost impossible for retail investors to gain access to deals led by such companies (they require large sums of capital, investors remain locked for multiple years, and illiquid conditions make it harder to get an exit…).

Why Invest in Startups

Historically, startup investing offered investors big upside potential as investors would be able to get in very early to promising projects, albeit with the risks involved. Start-ups have also been outstanding asset classes, with the start-up investment market being extremely large due to how attractive successful start-ups are. This is in comparison to the total market cap of cryptocurrencies, which is tiny.

However, start-ups are a privilege reserved for the top 3% of the population. As a result, retail investors are left with only the option to invest in public markets where valuations are already high and returns are expected to decline in the coming years.

Arcton intends to disrupt this pattern, making it accessible to everyone, and allowing individuals to venture into the realm of potential breakthroughs alongside seasoned investors.

Many of today’s giants were once startups that yielded substantial returns for their early backers. Arcton offers a chance to participate in such opportunities, providing access to companies with the potential to become the next industry leaders. This is increasingly important in crypto, where tech-driven startups often take the lead and, given enough time, offer big upside potential. To put things into perspective, crypto is currently a ~$1T asset class, while companies that were once startups have now reached a similar size, like Facebook at $772B, Space X at $150B, OpenAI at $27B…

Arcton introduces a paradigm shift where investors can enter the scene at an early stage and actively partake in identifying the next big innovation. This is the major difference and big value proposition of Arcton. Usually, investments in startups are restricted to a very small percentage of rich investors. With Arcton, this will no longer be the case and, in the future, everyone will have a fair shot at betting on the companies that will unlock significant economic value.

Why Choose Arcton

Arcton’s innovative platform offers an array of features that set it apart from conventional crowd-investing solutions. It empowers investors with continuous trading opportunities, liquidity through a secondary market, and flexibility in investment methods.

Potential Adoption

Unlike the predominantly crypto-focused DeFi landscape, Arcton is ushering in real shares from genuine companies, augmenting DeFi’s scope and security. This step opens doors for a larger DeFi ecosystem, safeguarding investors and diversifying their investment opportunities. By using blockchain technology, Arcton is solving the liquidity problem and flipping the VC script. 

Traditionally, VCs provide capital to startups and accept it to be locked up for 7-10 years until they can cash out their initial capital. In the meantime, retail investors are left in the cold. This model favors the wealthy but sidelines retail investors, who miss out on massive value creation. The reason for that is that they cannot afford long-term lock-ins. Not only that, but this setup often leaves startups on the whims of VCs, missing out on the chance to raise funds from the community.

Arcton’s commitment to granting investors autonomy over their shares without intervention sets a new standard in share investing. Besides, the permissionless secondary market ensures equal opportunities for all investors to trade shares at will. This is possible thanks to DEXs, which make it possible to bootstrap liquidity and pool capital together from different sources or individuals. This is not the case in traditional startups, whose shares are often highly illiquid and it becomes difficult to find an exit at a fair valuation.

Because of how this innovative approach reshapes investment paradigms, Arcton introduces a liquidity mechanism that fosters greater accessibility, liquidity, and security within the current DeFi landscape. Now startups can directly raise funds from the community, sidestepping VC gatekeepers and amplifying the earnings potential of individual investors. This is a win-win approach that reduces risks for retail investors and enables quicker access to capital flows.

It is also worth noting that a large amount of TVL could flow into DeFi as a result of this. For reference, consider the size of the equity market today. This has grown from $65T in 2013 to $112T in July 2023. The total crypto market cap is just over $1T. 

Not only that, but to understand the size of the opportunity it is also important to consider game-changing factors such as:

The illiquidity problem of RWAs is well-known, and DEXs offer a viable solution to the outdated infrastructure and legacy costs of TradFi. As a matter of fact, major institutions like JP Morgan, DBS Bank, and SBI Digital Assets Holdings have already started experimenting with the codebases of major DeFi protocols such as Aave and Uniswap. Not only that, but the World Economic Forum has also endorsed DEXs as a viable solution to the illiquidity challenge.

Total Addressable Market

The advent of Real World Assets (RWAs) on-chain presents a transformational shift in the asset management landscape. The magnitude of this transition offers an unprecedented investment opportunity, primarily evidenced by the burgeoning interest in tokenizing startup equities.

For reference, the crypto industry has a total market that barely exceeds $1T, while traditional securities currently hold a market cap of $112 trillion. This enormous pool has barely scratched the surface of its potential, with projections from reputable institutions like CitiBank forecasting the on-chain RWA market to reach $4-$5 trillion by 2030, while Boston Consulting Group predicts a whopping $16 trillion by 2023.

In Switzerland, only around 300 LLCs are listed on the stock exchange. The resulting illiquidity discount for the remaining LLCs (more than 100,000), which can be as high as 30%, translates to trillions of dollars in untapped potential.

Portfolio Diversification

Tokenized startup shares offer a compelling diversification strategy. With these shares coming on-chain, investors can diversify beyond traditional crypto tokens and penetrate the expansive world of RWAs.

These assets can easily weave into existing DeFi strategies, opening the gates to more intricate and potentially more rewarding investment avenues (i.e. lending, providing liquidity…). Moreover, they can significantly impact token values due to their sheer volume.

Tokenizing startup shares and integrating them on-chain is not merely a passing trend; it’s a transformative shift that will inevitably dominate the investment landscape. For crypto enthusiasts and investment analysts, this move offers an unparalleled opportunity to diversify, optimize returns, and capitalize on a largely untapped market. 


Arcton uses the Arbitrum blockchain to issue digital shares, utilizing the ERC20 standard.

For example, for their first IPO candidate Money Masters, liquidity will be seeded on the Camelot DEX, which is a native DEX on the Arbitrum chain.

How It Works

Arcton offers an operational framework that provides the liberty to trade at your convenience, transforming the traditional investment landscape:

How To Sell

Arcton greatly simplifies the process of selling. Historically, startup investors endured long waits, averaging around seven years before selling shares and recovering funds. These users are locked with their investments and cannot sell if they were to need money. As a result, only about the wealthiest 3% of the population can afford to invest in startups. Arcton revolutionizes this by allowing you to sell whenever you choose. This is possible because the shares are tokenized and can be traded on DEXs.

Upon participating in a crowd-investing campaign, your startup shares transition into digital tokens. These tokens are effortlessly transferable across the globe with just a few clicks.

By leveraging the liquidity of decentralized exchanges, Arcton enhances the trading process by leveraging the 24/7 availability, security, and transparency of trading startup shares in a DEX.

Because DEXs operate independently and set prices through a deterministic formula, the value of your shares is dictated by market dynamics, with supply and demand influencing prices. 

How To Invest

With just six straightforward steps, Arcton simplifies the investment journey, enabling you to swiftly invest in startups aligned with your passions and aspirations.

  1. Registration: Join as an investor by completing a swift 1-minute signup process.
  2. Exploration: Browse through a collection of investment opportunities, delving into the details of various startups.
  3. Startup Selection: Identify a startup that resonates with your interests and ambitions. Specify your investment amount.
  4. Verification Completion: Engage in a fully digitized verification process that only takes a few minutes.
  5. Payment Method: Opt for your preferred payment type from the available options: Swiss Francs, Euro, or Crypto.
  6. Final Verification: Upon the successful culmination of the crowd-investing campaign, you’ll receive digital shares representing your stake in the selected startup.

Getting Set Up

Arcton’s streamlined setup process allows you to efficiently embark on your investment journey, ensuring seamless account creation, secure wallet connection, effortless start-up investment, KYC compliance, convenient payment selection, and ultimate ownership of tokenized shares.

      1. KYC aligns with legal requirements set forth by our collaborating banks, establishing a secure, regulated environment for IPO participation.
      2. Successful KYC completion, alongside your interest, makes you eligible for IPO participation.
      3. The KYC process gathers information including name and nationality.
      4. Authorized entities with access to KYC data include Sumsub, Arcton, and a Swiss-regulated bank. 
      5. Post-IPO, Sumsub, and Arcton erase the collected data. The Swiss bank retains the data in accordance with regulatory standards, ensuring the Swiss Banking Secret safeguards privacy.

How Arcton Selects Startups

Investors directly contribute to the success of startups they believe in, aiding their growth trajectory. Rigorous selection processes ensure you can invest confidently.

The curated selection of startups by Arcton spaces various market sectors, including:

The startup selection process consists of the following stages:

For Investors

1. Discover and invest in startups: Browse a curated selection of high-quality startups. When you are ready, invest seamlessly by acquiring your stake with CHF, EUR, or USDC.

2. Redeem tokenized shares: After the fundraise, transfer your tokenized shares to your digital wallet. Swiss legislation ensures that these tokens represent actual ownership in the startup. 

3. Buy and sell at any time: Users can trade their tokenized shares on the Camelot DEX

For Startups

Arcton’s fundraising approach empowers founders by assisting them in fundraising, community engagement, and preparing for future growth. Reasons for choosing Arcton include:

The fundraising process ensures the following:

Business Model

Arcton operates at the intersection of cutting-edge blockchain technology, start-up investment democratization, and regulatory compliance. The business model is designed to transform the landscape of start-up investments and provide an accessible and efficient platform for investors and entrepreneurs. 


While Arcton is committed to providing a secure and accessible platform for start-up investments, it’s important to acknowledge the potential risks and challenges associated with investing in this dynamic ecosystem. 


There are currently no audits or bug bounties for Arcton. 

As Arcton is a facilitator for IPOs, audits will most likely be from the IPO candidates themselves, or the secondary markets. 


Name Role Former Positions Notable Studies Social profiles
Merens Derungs Co-founder and CEO Former Capital Market Lawyer at Backer McKenzie PhD on Digital Shares and DLT Law LinkedIn


Francesco Biviano Co-founder and COO Former Data Analyst at eBay Certificate of Advanced Studies in Blockchain at University of Geneva LinkedIn 


Project Investors

Arcton has secured CHF 350,000 in a pre-seed investment round with notable investors such as Prof. Aleks Berentsen from the University of Basel, a renowned expert in Distributed Ledger Technology (DLT), Blockchain, and Crypto assets. Another investor is strategically affiliated with Camelot, a decentralized exchange on Arbitrum, reinforcing the existing collaboration between Arcton and Camelot. Also joining the round is Francesco Illy, former co-owner Gruppo Illy and president of the board of Amici Caffè.

Additional Information


Product Lineup




Secondary Market


Community Links


Revision History

Version 0.0 | October 4, 2023 – Initial Release

Version 0.1 | October 20, 2023 – Added ARC token