Key Takeaways

  • The Coronavirus pandemic has brought much of the world’s economy to a standstill, with investment brokers waiting out the pandemic before funding more SMEs

  • Brokers have the opportunity and the responsibility of providing capital to help SMEs resume and scale their operations once social distancing eases

  • Tokenized Private Placements are an exciting new option to connect brokers with SMEs who fit their investment profile and get funds flowing as quickly as possible

  • Sign up to receive updates about the Blockstation Tokenized Private Placement Accelerator when it launches later this year

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By: Marko M. Hafez, Co-Founder and President

Investment brokers, venture capital firms, angel investors, take note: you’re the key to jumpstarting the world economy.

When social distancing eases and the Coronavirus pandemic is under control, most small and medium enterprises (SMEs) forced to shut down in March will be ready to throw open their doors and resume operations. What many of them will need to grow and scale, however, is capital.

Unfortunately, existing ways to connect with investment opportunities that match your investment profile are inefficient. How many hours do you spend each week looking through mismatched pitch decks before finally finding the right offering? How long does it take to get the paperwork in order and arrive at a signed term sheet?

You may look at those time frames as “just the cost of doing business,” but be honest: we can do better.

For an example of how to get money flowing quickly, look back just a few years to the ICO boom of 2017, which sealed over 500 deals worth $5.5 billion USD. Tokenization and blockchain technology were key to making this achievement possible - even if it did take place outside the regulated financial ecosystem.

The good news is, those same technologies and processes are now available to traditional brokers in full compliance with securities regulations.

Introducing the Tokenized Private Placement Accelerator

Blockstation’s new Tokenized Private Placement Accelerator is a powerful new fundraising platform for investment firms and SMEs around the world, taking the same technologies and processes that drove the ICO boom and applying them to the traditional financial ecosystem.

The result is a fast, reliable way to fast-track any term sheet, with benefits including:

  • Sophisticated matchmaking engine compares each offering with your investment profile and matches you with the best candidates

  • Fast, customizable private placement memorandum templates to fast-track disclosure documentation

  • Fully compliant platform makes it fast and easy for issuers to tokenize, track and manage equity in real time

  • Accredited investor verification with built-in KYC and AML

  • Smart contracts reduce risk by self-enforcing legal requirements such as holding periods

The Accelerator facilitates easy access to accredited investors worldwide, the seamless flow of funds, and compliance with evolving regulatory regimes.

Embrace Tokenization to Lead the Post-Coronavirus Recovery

In a lot of ways, we’re lucky - a huge number of businesses are primed and ready to pick up where they left off once social distancing eases. But things may not be so easy for SMEs who were planning their next capital raise for this spring or summer, and brokers are the ones who will be front and centre to provide much of the capital needed to ensure those SMEs can thrive.

We believe that tokenization is the key to getting capital where it’s needed most as quickly as possible, and are working quickly to launch our Tokenized Private Placement Accelerator later this year.

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What role do you think tokenization will play in the post-Coronavirus economic recovery? Let us know on social media using #Blockstation!

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