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Capital Raise

DIGITAL SECURITY OFFERING

A Security Token Offering (STO) can be used to raise capital. This gives the Owner an alternative and/or additional vehicle for funding renovations, pre-construction projects and/or acquisition investments.

Tokenization could give Owners an edge when competing for investors, solving for the age old problem of illiquidity.

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Variety of Coins

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.

Benefits of raising capital through an STO

  • Advantage when competing for investors

  • Capital diversification

  • Broader, global investor base

  • Reduced cost of capital

  • Control and flexibility of terms

  • Eliminate interest rate fluctuations

  • Plausible liquidity premium 

  • Activate stagnant capital trapped in existing buildings

  • Maintain full ownership and management benefits

  • Provide clear regulatory visibility / transparency

  • Simplify and automate management of the capital stack

  • Legalities & compliance is 'baked' into the token

Benefits of tokenization for investors 

  • Option of liquidity

  • Lower capital requirement

  • Allows for direct investment

  • Diversification of investments

  • Cross border transactions

  • Maintain control of their money

  • Simplifies an exit 

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TYPES OF PROPERTIES TO TOKENIZE

  • trophy properties

  • multi-family

  • leisure

  • hotel

  • resort

  • restaurants

  • retail

  • office

  • storage

  • parking

  • industrial

  • new development 

  • build-to-rent

  • agriculture

  • mineral rights

  • special purpose

    • sports stadiums

    • city assets

    • gas stations

    • healthcare

    • casinos

    • airports

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SECURITY TOKEN OFFERING

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 securities offering, 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 create a successful offering and attract the funding they need to grow by taking the time to do things right from the start.

Contact us today to learn more.