Digital securities (sometimes referred to as security tokens) are digital assets that are compliant with federal securities laws and run on the blockchain.
Digital securities offerings, or DSOs, are a compliant alternative to ICOs—and they’ve recently been gaining momentum in the USA.
DSOs can be run using securities exemptions like Reg D, Reg A+, Reg CF and Reg S. Currently, the most common exemption being used is Reg D 506(c), which allows DSO issuers to generally solicit or market their deal and raise an unlimited amount of capital–but restricts investment to verified accredited investors.
The beauty of a DSO is that any company can run one: a startup, an enterprise, a blockchain company or non-blockchain company. Like ICOs, DSOs promise near-term liquidity, with several regulated trading platforms like OpenFinance Network, tZERO and Templum either live or in development.
We offer a comprehensive solution to everyone who is interested in raising funds the traditional way, and can now add digital fundraising capabilities to our offering. It involves:
- An audit of the individual’s funding rounds (if any) and existing angel and venture capital foundation investors
- A cost-benefit analysis using different paths to raise the desired amount
- A report with recommendations – which in some cases might run counter to the initial assessment/request – about potential strategies that fit your mission/organisation/industry at this point in time
- Offer to be engaged to undertake the fundraising project in its entirety – or where appropriate – introductions to established players in this space who have a track record, for an agreed success fee should the introduced parties secure the funds needed.