If you’re a founder looking to raise capital a Security Token Offering (STO) will be one you’ll be hearing more about in the coming years. Every day we’re hearing about crypto price fluctuations and overnight millionaires. What’s more under the radar is the blockchain movement or use of ‘smart ledgers’ to track and transfer ownership using tech. So today, instead of old share offerings a STO is a way of raising finance using tokens instead of shares that make it easier to transfer.

Founders for a number of years have been using Initial Coin Offerings (ICO) to raise capital. ICOs enabled promoters to avoid red tape & regulatory issues. On the other hand this freedom caused some bad actors to engage in fraud, losing investors money and trust. There has since been a rise in the use of tokens instead of ICOs. STOs are regulated under securities law because tokens are tied to a physical asset. Both ICOs and STOs are currently an option for exciting startups to generate capital to grow. Many consider them better than share offerings because the tech makes it easy to create more offerings, cutting out the middleman & at a low entry price making it attractive to investors All in, it makes it more likely to generate funds to grow.

Successful STOs have traits of being in tech-focused startups that have the ability to trade on the world stage. Another area that is successful is in real estate investment. It’s expanding all the time and if you feel it could be a fit for your startup the BusinessLoans.ie team are here to guide you through the process using our trusted partners. Get in touch now on hello@businessloans.ie or call 01 55 636 55