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Capital Raise

Tokenization can be used in raising capital through an SEC complaint Security Token Offering (STO) under RegA, RegCF or RegD. This can be alternative and/or additional vehicle for funding projects like renovations, pre-construction, redevelopment or acquisition.

SEC Compliant Security Token Offering

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

Variety of Coins

A Security Token Offering (STO) is a fundraising mechanism that allows companies to issue tokens representing ownership shares, which are compliant with securities regulations. 

Benefits of SEC compliant online capital formation through an STO

  • Compliance: Security tokens are compliant with securities regulations, which provides investors with more transparency and security, and can potentially attract institutional investors who are more risk-averse.

  • Liquidity: Security tokens can be traded on SEC regulated exchanges, providing investors greater liquidity compared to traditional securities. This also makes it easier for investors to buy and sell shares of the real estate offering.

  • Global Reach: Some security tokens can be bought and sold globally, which can provide companies with access to a larger pool of investors.

  • Fractional Ownership: Security tokens can be divided into smaller units, allowing investors ownership in assets that may have been out of reach due to high minimum investment requirements.

  • Reduced Costs: STOs can reduce the costs associated with raising capital.

  • Automation: STOs can be programmed with smart contracts that automate compliance and regulatory requirements, reducing the need for intermediaries and potentially reducing cost and time.


Overall, a Security Token Offering can provide companies with greater flexibility, global reach, compliance, and liquidity compared to traditional securities offerings. 

Benefits of tokenization and online capital formation for investors 

  • Option of liquidity

  • Lower capital requirement

  • Transparency of the deal

  • Allows for direct investment

  • Diversification of investments

  • Cross border transactions (based on compliant SEC Regulation)

  • Maintain control of their investment

  • Rapid settlement 

  • Cost effective 

  • Simplifies exit  

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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. 

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