Why tokenize?
Find out how an STO helps business owners
Why tokenization of my company assets?
A single token offering (STO) can benefit you and your company in a number of ways. Some of the key benefits include:
Acces to funding
Companies in each phase have their own challenges when it comes to financial growth. An STO allows you to raise capital by issuing a token that represents ownership in your company. This can be a more efficient and cheaper way to raise funds compared to traditional fundraising methods such as venture capital or an initial public offering (IPO).
Liquidity
Tokens issued through an STO can be traded on a secured platform providing investors with a way to easily buy and sell the tokens to and from each other.
Transparency
STOs are built on blockchain technology, which allows for a high degree of transparency and immutability. This can help build trust with investors and increase transparency for regulatory compliance.
Lower barriers to entry
Tokenization allows companies to raise capital from a wide range of (smaller) investors, including those who may not be accredited investors or may not be able to participate in traditional fundraising methods.
Business growth
Tokenization of shares frees new routes to increased liquidity and business growth. It’s innovative, future-oriented, and secure. Since it’s also cost-effective and flexible, the tokenization of your company enables you to easily share profits with employees, suppliers, and other stakeholders you wish to include in your organization.
ICO
Utility Token Offering- Enables funding of start-ups and new projects.
- Ownership of the asset is not distributed. You keep full ownership.
- The token holder has very limited rights if any.
- Investors are financially motivated.
STO
Security Token Offering- Fit for scale-ups and established businesses.
- The token holder has legal rights derived from the financial instrument, including dividend and voting rights, which is not the case for utility coins.
- Investors are co-owners expressing a more long-term engagement.
- Security tokens can be transferred freely peer-to-peer between white-listed participants without a notarial deed.
- The underlying blockchain technology provides transparency and security.
- New to many people, so may require more explanation.
IPO
Initial Public Offering- Fit for established businesses.
- The shareholder has legal rights, including dividend and voting rights.
- Familiarity with a traditional method.
- Expensive (requires either listing on a stock exchange or paying a notary fee upon every transfer).
- Transactions can take about 30 days whereas STO transactions are executed in less than 3 minutes.
Other
Venture capital- Involvement of one big stakeholder that provides knowledge, funds, and contacts.
- Involvement of one big stakeholder.
Gaining clarity
Let us help you gain clarity on asset tokenization and assess whether this is for you.
We have designed a step-by-step approach:
- Start by filling out the STO Readiness Check.
- Read your personal report so you know what aspects need to be addressed in your case. This will give you a head start in the process of assessing whether an STO is right for your business.
- Contact us for more information, answers to your questions and further help.
Why Liqwith?
Our name is the result of combining two words that represent our philosophy: ‘Liquid’ as in transforming value into liquid assets to be used for continued business growth, and ‘With’ as in inviting participants to share ownership and profits with.
Your trusted advisors
We help businesses and organizations to convert their value into digital shares, without any bureaucratic wrangling.
Get in touch
Want to get in touch? We’d love to hear from you. Here’s how you can reach us…
Helium 12A
4751XB Oud Gastel
The Netherlands
+31 165 33 22 44
info@liqwith.io