Financing (tokenisation, private equity)
All securities will be tokenised in the future. Tokenisation is a powerful innovation and trend, and it may have the same disruptive effect to the financial industry as the introduction of e-mail had to our everyday business communication.
Comistar helps companies to tokenise assets and raise funds in a compliant way in the European Union. Our core competence and services for companies planning to do security token offerings include ( but are not limited to):
- Structuring the public offerings
- Private placements
- Legal compliance
- Assistance in drafting the prospectus
- Registration of prospectus
- Tokenisation of assets
Comistar has developed a web-application called ProspectusApp to draft EU compliant investment documents.
Initial Coin Offerings caught all the headlines in 2017 gaining huge popularity among retail investors. As the industry was and still is very young and unregulated, it also attracted people with bad intentions. Affected by all sorts of scams and inflated capital raises, the ICO scene cooled down in 2018. However, for proper utility tokens which are issued by credible companies, it’s still an excellent way of raising capital.
ICO or initial coin offering is a method of raising capital by issuing utility tokens. Utility tokens generally provide a future access to a service or a product. STO or security token offering is a method of raising capital by issuing tokenized securities. A security token is backed by external, tradable assets, and can represent a real share of the company. Security tokens give you ownership rights, whereas utility tokens are more like a gift card for company products/services.
The first step is to have a clear and understandable business proposal for the market. You need to be able to write down a decent business plan (a white paper) with the details of the planned activities and the market where you operate in. Once you have this kind of base document prepared, it’s time to engage with us to discuss your plans and build a roadmap for the offering. Any kind of capital raise requires serious commitment of time and resources, and a very strong value proposition to succeed.
From the legal perspective, doing a security token offering is more demanding and the costs that will occur are considerably higher compared to costs that will occur by conducting an ICO. The pricing depends on the services required, to what extent the client can provide necessary input, and whether we’ll include a success fee as part of the pricing structure. Details are given upon engaging with the client and learning about the project.
Our standard ICO services include:
- Whitepaper analysis (compliance)
- Token sale agreements
- Terms & Conditions
- Tokenization (technical)
- Token economics
Offering Expense Table
- Technology platform
- Advisors / Solicitators