Fundraising for business projects has traditionally been done via bank loans or with the support of private venture capital firms and investors. The reality is that for many smaller companies, this is model is not viable. Obtaining funding through traditional means can be a slow, cumbersome process, with numerous legal requirements and a high return on investment.
For businesses looking to grow rapidly, a secure, efficient, and scalable solution to funding is needed. Fundraising with digital, asset-backed tokens could be that solution: a means of fundraising that is open to all companies, more secure than other digital asset funds, and without the restraints of bank loans and expectations of private investment.
What are asset-backed tokens?
Asset-backed tokens are a form of digital investment. Unlike other digital investments on the market, tokens are more secure because they are asset-backed, meaning that they are linked to real underlying assets that allow for automatic and fair market coordination.
DigiFunds’ asset-backed fundraising platform is intended to empower businesses with sustainable and extensive capital funds they need to rapidly scale and grow. It is a secure model that provides businesses with the Initial Coin Offering (ICO) they need to take their venture to the next level.
With asset-backed tokens, individuals from any walk of life — be that seasoned investors or newcomers to digital assets — can invest in a promising venture with tangible currency, which is then converted into digital tokens and invested into the business of their choice.
How is asset-backed token fundraising different from other digital fundraising models?
Current digital fundraising models can pose financial risks to businesses because they are highly speculative investments. Digital investments are driven by the trends of supply and demand on the market and not connected to the intrinsic value. For this reason, they can be considerably volatile and are not always a reliable form of funding.
Asset-backed tokens offer a much more secure source of funding because they are based on real, underlying assets of investors. The ICO provided by DigiFunds for businesses is non-speculative, giving greater security to new businesses and providing a stronger foundation from which to start scaling operations.
Similarly, there is less risk for investors in asset-backed tokens because the model allows for more accurate return in line with market success.
Asset-backed fundraising vs. traditional funding methods
Traditional fundraising methods so often leave smaller businesses overlooked. Both traditional bank loans and private venture funding can pose multiple challenges to smaller businesses across all industries, which ultimately deny the sector of potential innovation and growth.
Asset-backed fundraising is a democratic solution that not only opens up investment opportunities to individuals from across society, but also provides real, tangible funding to businesses with a rapidly scalable model that has the potential to build multi-billion companies.
Token fundraising is also much more flexible fundraising than traditional methods. With a verified digital platform such as DigiFunds, cumbersome and time-costly legal processes required for obtaining a bank loan are eliminated, and businesses can start raising funds on a much quicker time scale. DigiFunds operates a cutting-edge financial system that is fully compliant with all laws and policies. We take care of the legal processes so that businesses can focus on what really matters: fundraising.
Similarly, smaller businesses will not miss out on funding opportunities due to their size, credit scores, or financial security. Asset-backed fundraising is open to companies of all sizes.
When it comes to venture capital investment, firms will often demand a high return and put pressure on companies to meet growth metrics and show progressive development. Not only is this stressful for businesses, it can sometimes be unrealistic due to uncontrollable market and economic trends.
Further down the line, a business may find that they are unable to go public due to high costs of buying out investors. Choosing an autonomous funding strategy for your business gives companies control of their own assets, roadmap, and growth strategy, ultimately creating greater opportunities for accelerated growth in the market.
Who is asset-backed token fundraising for?
Asset-backed token fundraising is unique in the fact that it is a shared investment platform, meaning that anyone interested can invest in a promising venture. For businesses that choose to raise funds this way, there is a much greater funding potential because the number of potential investors is unlimited. A shared investment model creates more workable funds, which means more moveable capital for businesses to channel into growth.
Furthermore, asset-backed token fundraising is a sustainable form of funding for any venture. The DigiFunds platform has provided an ICO raised with asset-backed tokens to companies from across a variety of sectors. With asset-backed tokens, fundraising is made more democratic and feasible for all businesses from all industries and sectors.
To find out more about DigiFunds as asset-backed token fundraising, visit the DigiFunds website.