Traditionally, raising capital has been a long and arduous task for people and businesses needing a cash injection into their business, be they start-ups, SME’s or established firms.

The traditional source of funding for this would include banks, angel investors and venture capital firms, limiting those business’ exposure to other types of investors.

Businesses have looked for alternative ways to find investment rather than those traditional methods and crowdfunding has become increasingly popular; crowdfunding is a method of raising capital through the collective efforts of a large pool of individuals, primarily sourced online via social media. The crowdfunding platforms leverage their networks for greater reach and exposure. Tokenise will allow companies to tokenise their equity and raise capital.

So when you invest in a Tokenise equity fundraise business you will receive equity in the form of tokens for the amount you have invested. If the business succeeds, your tokens will be worth more than what you paid for them and you may be able to sell these tokens on or receive a dividend payment in the future. If the business does not succeed, as many do not, you may lose some or all of your investment.

LOSS OF CAPITAL

The business you invest in may fail meaning you will not see any return on your investment and you may lose some or all of your money.

ILLIQUIDITY

Even if the business is a success it is likely to be illiquid for some time while the business is growing, you may also not have the opportunity to sell these tokens.

DILUTION

This is where the company decides to sell off more equity in the future to raise further capital, meaning the percentage of equity you hold will decrease.

CHOOSING TO INVEST

  • THE PLATFORM

    The platform allows companies to raise capital, in return Tokenise will create equity tokens issued via the blockchain that are a representation of the underlying assets. In order to invest in the equity tokens you will first need to register with Tokenise and go through our onboarding process.

  • DUE DILIGENCE

    When you have decided to invest for the first time we will need to take you through our due diligence process. You will need to confirm your investor category and complete our appropriateness test to ensure you understand the risks of investing. Finally, KYC/AML checks will need to be completed ensuring you are who you say you are. The KYC/AML is facilitated by KABN on our behalf and if successful you are eligible to invest. Once this process has been completed you will be able to subscribe for investment.

  • FUNDRAISING CAMPAIGN

    Different campaigns will allow different minimum amounts of investment, once you have clicked to invest and chosen the amount, you will be sent your Subscription Agreement for signature.

  • ALLOCATION

    Once the campaign has reached its target or run its course the funds will be transferred to the business and you will be allocated your tokens. If it fails to reach the minimum raise your funds will be returned to you in full.

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