Key Takeaways

  • Running a small or medium enterprise isn’t easy, and the economic slowdown caused by COVID-19 hasn’t helped.

  • Even once social distancing eases, many SMEs will need additional funds to scale and grow

  • Tokenized private placements can help, making it faster and easier to access needed capital from accredited investors as well as connect to the right broker while saving time and effort

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

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

Running a small and medium enterprise (SME) isn’t easy, and hasn’t gotten easier during the economic slowdown caused by COVID-19. Even with the economy primed to spring back as social distancing eases, many SMEs will need additional funds to restart operations, scale up and grow.

And traditional methods of identifying the right Broker to match your company profile can be a tedious task, costing you significant time and resources. Brokers often have very specific investment profiles and mostly focus on funding SMEs who fit their criteria in every.

There’s got to be a better way. How can the FinTech sector help SMEs find the funds they need?

Introducing Tokenized Private Placements by Blockstation

What the Blockstation Digital Asset Trading Platform did for the stock exchange earlier this year, we want to do for SMEs. Set to launch later this year, our new private placement solution builds off our work with stock exchanges to provide:

  • Instant access to accredited investors around the world

  • Seamless flow of funds

  • End-to-end support for issuance, management, trading, tracking, and custody of tokenized equity

  • Reporting and auditing

  • Smart contracts

Most importantly, our powerful matchmaking engine filters out brokers with the wrong investment profile, ensuring SMEs only spend time on preparing and delivering pitches for organizations that are most likely to offer an attractive term sheet.

Tokenization and Digital Assets Moving to the Mainstream

Tokenization and blockchain technology were demonstrated and validated with the ICO boom in  2017. ICOs raised over $5.5 billion USD that year. It proved the technology’s ability to connect businesses with investors, as well as handle the transfer of funds and management of tokens - more quickly and more accurately than the traditional financial ecosystem.

And the traditional players took notice.

Since then, the number of securities regulators around the world studying and implementing frameworks for digital assets has grown substantially, leading to a resurgence in these new Security Token Offerings (STOs), including tokenized private placements and even Tokenized IPOs on a national stock exchange. 

Want to list on the secondary market? Download our Tokenized IPO case study FREE

All of a sudden, SMEs have access to a regulated pathway to tokenize their equity. What’s needed is a solution that connects them with the right broker at the right time, and provides end-to-end support for their offering.

Tokenization Set to Become the New Normal of Fundraising

Blockchain technology has come a long way from the Wild West of 2009 when Bitcoin burst onto the scene. Today, it’s ushering in a new era of high-speed, low-cost financing options - with regulatory approval - for SMEs.

Do you agree that tokenization is the future? Let us know on social media!

Sign up to receive updates on our Tokenized Private Placement solution and be first to take advantage when it launches later this year.

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This content is for informational purposes only. You should not construe this content as legal, tax, investment, financial, or other advice, nor as a solicitation, recommendation, endorsement, or offer by Blockstation or any associated third party to buy or sell any securities or other financial instruments in any jurisdiction in which such solicitation or offer would be unlawful under the applicable securities laws. All Content is information of a general nature and does not address the circumstances of any particular individual or entity, nor does it constitute professional and/or financial advice, nor does it constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Blockstation is not a fiduciary by virtue of any person’s use of or access to content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of the content before making any decisions based on such content.