Security token offerings (STOs) are the future of fundraising. Having an STO advisory onboard can help you to keep up with the ever-changing laws and regulations to ensure successful STO crowdfunding.
STOs are similar to ICO except that instead of offering utility in the form of future products or services, STO offers a stake in the company. This ultimately allow investors to get an equity stake in the project in exchange for capital.
Launching STO is complex and demanding—there are several legal and compliance issues to navigate. In addition, the company has to create and manage tokens. Therefore, having access to an STO advisory agency with specific skills to support you throughout the process is critical for success.
In short, there are no shortcuts to issuing security tokens. Companies must conduct due diligence when issuing security token offerings to ensure compliance with laws and regulations. Failing to fully comply with regulations can result in the following problems:
- Getting slapped with a penalty from SEC or any other governmental body. In some cases, you can be asked to close operations
- Your security token won’t be listed at the exchanges which can dilute the future liquidity of your tokens
- Failing to conduct proper KYC and AML procedures could result in confiscation of raised funds
- Your STO project will appear unprofessional to investors and the community
Why should companies engage STO advisory?
So then, this is where STO advisory comes in. An STO consulting firm has a team of advisors and skilled individuals who can bring their expertise and understanding of the market to make a difference in STO success. The truth is STO advisors have extensive knowledge of what happens behind the scenes that outsiders might not be able to see. Besides, hiring STO advisory services is cost-effective than employing full-time staff since you don’t have to worry about employee’s benefits, recruitment etc.
Above all, the expertise and strong investor connections of STO advisory firms can give you entry to deeper funding pools and broader brand awareness. Below are some of the key tasks STO advisory firm can help you with:
- Legal and technology support for your security token
- STO marketing and community management
- STO strategy including the issuance of tokens, listing, and post-STO
- Introduction to potential investors and investor relations management
- Preparing Investment Agreement options
It is very difficult to handle all these functions internally and you will definitely require assistance from outside. Thus, you need a comprehensive STO support and forward thinking marketing strategy which only STO advisory agencies can provide.
So is STO Advisory right for you?
As a premier STO advisory firm, TokenMinds is dedicated to providing the best advice to STO projects including how to execute and optimize security token offering while navigating the ever-changing legal hurdles involved. Our longstanding presence within the crypto community and superior ICO/STO marketing approach are what sets us apart from our competitors.
From marketing to global PR and investors outreach, we can help you reach your target investors. Furthermore, we help you close deals and build a strong community to ensure successful STO crowdfunding.
Tell us about your project today and we’ll help you scale it in the right direction.