NEW YORK, March 04, 2021 (GLOBE NEWSWIRE) -- An award-winning technology company Stobox in the booming industry of securities tokenization is raising $1 million at a valuation of $10 million in a round focused on financing the growth of sales and revenue. The round will be conducted in the form of a Security Token Offering (STO), i.e. the shares are stored and sold in the form of blockchain tokens.
Tokenization is an innovative way of structuring private investment rounds that makes them accessible to non-institutional investors and significantly increases the liquidity of shares purchased during these rounds.
Is it a solid investment?
There are several reasons why investing in Stobox is a good deal:
- The industry of securities tokenization has been struggling with some structural barriers during the last years, primarily with the lack of regulatory clarity and liquidity providers. Both of these factors were eliminated in 2020, leading to a booming growth: ~200% YoY growth in issued assets, 518% YoY growth in market cap, 1,106% YoY growth in monthly trading volume.
- Solid competitive advantages. Stobox has the strongest content marketing among competitors and a first-mover advantage in decentralized securities trading.
- There is already an operating product and first clientele. The proceeds from the sale will be primarily used for accelerating revenue growth.
- Shares will be liquid, which reduces the risk of investment and creates an opportunity to take profits earlier.
How is Stobox Offering different from both conventional VC fundraising and crowdfunding?
- The offering is not conducted via a centralized crowdfunding platform or a stock exchange. Instead, it is done through a proprietary platform – Digital Securities Dashboard.
- The offering is global and investors from multiple countries are welcome.
- Shares will be tradeable upon the completion of the offering.
- The offering is open both to institutional and individual investors on the same terms.
Why token offering?
Companies are increasingly considering Security Token Offering as a superior fundraising solution:
- Accessibility of different kinds of investors from different countries increases the available pool of capital, which increases the odds of successful fundraising and reduces the cost of capital.
- Increased liquidity reduces the risk for investors, further facilitating capital raising.
- A more diverse pool of investors leads to a better corporate governance and less control over the business from the profit-driven VCs.