Security Tokens or STO – Next step in Evolution of Capital Markets
This is part 1 of a 5 part series.
So you have a small business, or you are just starting out, setting up your company. Chances are, you probably run short on funding your great, big idea. Or, you have done some preparatory work to take you to a minimum viable product (MVP), but have little steam left to take your product to the market. Or better yet, your product is a proven working concept, but you still need that extra funding to take your small business to the next level.
Every business needs funding fuel to grow. Up until breaking even. And even then, to reach the next expansion levels, businesses need funding to grow and develop. Indeed, a survey on reasons why startups tend to fail in 9/10 cases admit that one of the top reasons for start-up ventures to fail is the lack of funding.
So what are your options? Not counting grants and subsidies, there are typically two main ways, of funding your business. The capital markets are largely available either in the form of debt or equity funding. The following will be an overview of the currently available funding avenues that companies have at their disposal. From the traditional private equity or debt to less conventional crowdfunding. Indeed, the most recent tokenisation method is the next step in evolution of the capital markets.