CrowdfundX, a leading financial marketing firm has announced the launch of its new advisory services regarding security token offerings (STOs). The services are available for clients who are qualified issuers.
Assisting The Security Coin Offering (STO) Sector
CrowdfundX has marketed STOs during the past nine months by creating tactical introductions between its issuer clients and various financial entities, such as 220 U.S. crypto hedge funds, institutional investors and venture capital firms.
An STO is a regulated token offering that usually relies on Rule 506(c) of Reg. D of the U.S. Securities and Exchange Commision, to raise capital from verified accredited investors. Rule 506(c) of Reg. D permits two exemptions from registration for companies that offer and sell securities. Companies that rely on the Rule 506 exemptions can raise unlimited amounts of capital.
CrowdfundX has begun to offer STO advisory services after taking notice of the struggles STOs seem to come by to raise capital. The firm has also noticed the dearth of companies adept at providing advisory services for STOs.
Thus, the marketing firm launched its own advisory services for issuers. Darren Marble, the CEO of CrowdfundX has discerned the troubles that STOs are often met with and the need to avoid such troubles.
The CEO said:
“Having marketed some of the industry’s most notable STOs and Reg A+ IPOs, we know firsthand that the success or failure of a particular deal is often determined in the months leading up to the offer. Mistakes around deal structure or marketing strategy can be fatal — and yet in many cases, they could have been prevented with the right partners and proper strategic planning.”
The Offering Details Of The STO Advisory Services
The new STO advisory services from CrowdfundX allow issuers to partner with an experienced firm with proven expertise and insights into security tokens and STOs.
Issuers can now also engage with CrowdfundX for advisory services via 3-month minimum contracts. These are designated to mitigate risk, increase the likelihood of an STO’s success, and raise more capital.
CrowdfundX provided STO marketing services to giants in the cryptocurrency industry; these include tZERO, KODAKOne and others.
CrowdfundX has recently received a surge of STO inquiries from businesses ranging from startups to full-fledged companies. These businesses seek help in the development of marketing collateral, deal structure, technical blockchain audits and custom investment platforms. They usually require appraisals and introductions to tokenization protocols and security token exchanges.
STOs are offerings in which company stakeholders issue security tokens (instead of utility tokens) to investors. In an STO, investors invest with the presumption of getting future cash flows, dividends, or voting rights directly from the issued security.
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