Capital Raise
DIGITAL SECURITY OFFERING
A Security Token Offering (STO) can be used to raise capital for new development and re-development projects, giving the Sponsor an alternative and/or additional vehicle for funding pre-construction investments.
Tokenization could give Developers an edge when competing for investors, solving for the age old problem of illiquidity.
SECURITY TOKEN OFFERING
Security tokens are a digital form of traditional investments that represents a stake in the real estate asset. Issued on blockchain technology, the offering is divided into numerous tokens and can be easily transferred in a transparent, secure and traceable way. This mechanism allows properties of enormous value to be divided, making them accessible to more investors and simplifying the process.
What are some of the benefits of raising capital through an STO?
Capital diversification
Broader, global investor base
Liquidity and optionality for investors
Plausible liquidity premium
Reduced cost of capital
Control and flexibility of terms
Eliminate interest rate fluctuations
Simplify management of the capital stack
ROLE OF THE ADVISORY TEAM
Our Advisory Team works with issuers to bring the necessary players to the table in a Digital Securities Offering. An Advisor is essential to ensure everything goes smoothly. A company can easily overlook the nuances and complexities of securities regulations.
An Advisor’s role is to manage and monitor the entire process. Our global ecosystem of partners are pioneers deep in the space:
Attorneys
Auditors
Technology Providers
Broker Dealers
Transfer Agents
Marketing Companies
Investor Acquisition Firms
Crowd Capital Providers
Alternative Trading Systems
Escrow & Title
Lenders
Custodians
Crypto Payment Support
KYC / AML Providers
Other relevant Partners
)_edited.jpg)
REGA+
For a company to file with the SEC under RegA+, it must go through qualified testing. This is where a company’s financials, management team, and other factors are analyzed. An Advisor can provide valuable insight and knowledge, without an Advisor, a company may be at risk of not being fully prepared for this vital step.
An Advisor can help avoid costly mistakes. Some key responsibilities include:
Provide non-legal advisory services to management teams
Coordinate fundraising efforts with online platforms or crowdfunding portals
Facilitate communication between issuers and financial professionals like broker-dealers
Assist with due diligence
Work with marketing teams to establish marketing strategies
Other services to streamline the offering
By preparing well for a Reg A+, companies can put their best foot forward and make a strong impression on potential investors. Having a well-coordinated team in place is just as critical as having all the necessary documentation and financials.
An Advisor is an essential role in ensuring all the moving parts are working together smoothly so that when it comes time to present to investors, companies can do so with confidence. Advisory can help companies make a successful RegA+ offering and attract the funding they need to grow by taking the time to do things right from the start.