Block Stocks will become an all-in-one platform offering complex consulting solutions to Startups and SMEs and provide a truly painless process of fundraising. Thanks to becoming a part of the Block Stocks ecosystem, companies will benefit from consulting services in the areas of Legal, Finance, IT and Marketing.
What is even more important, all of these services will be provided to SMEs without any up-front fees. Thanks to Block Stocks, Startups and SMEs will be able to benefit from professional complex consulting services for free* (* by paying only a success fee based on a fundraising value).
Block Stocks believes that Security Token Offerings are the future of fundraising (you can learn more about the differences between ICO and STO here).
Unlike the ICOs, in which companies or projects are offering “utility tokens”, in the STOs, Startups, and SMEs are offering financial instruments and securities. These offerings are highly regulated in the financial markets and the set of rules varies from one jurisdiction to another.
Companies can choose a different type of offerings such as public offerings (where securities are offered to the broad “public”) or private placements (restricted to a small group of investors). The regulatory burden of public offerings is much higher (companies usually have to prepare a so-called prospectus or investment memorandum and authorize it at a certain regulatory institution such as German BAFIN).
On the other hand, the advantage of the public offering is the opportunity to attract a larger group of investors; thus, raise more capital. Furthermore, there are several exemptions in different jurisdictions thanks to which companies can conduct public offering with much lower compliance burden assuming that certain restrictions will be introduced (an eg. offering will be directed only to “accredited” investors or the fundraising value will be capped).
To sum up, Startups and SMEs looking for growth capital can achieve this goal using different types of offerings. Thanks to Block Stocks, companies will learn which type of offering and potentially which exemptions will be the best solution to raise growth capital and take their businesses to the next stage.
Many companies are truly exceptional in growing their businesses. However, not all of them are specialized in the areas of corporate finance. Lack of financial knowledge is one of the crucial obstacles for European SMEs looking for a fundraising (check our Market Overview Whitepaper to learn more).
While the financial know-how can be irrelevant to their day-to-day business, when it comes to the organization of fundraising and engaging in negotiations with investors, it becomes a paramount skillset.
Thanks to our financial division, companies will benefit from the following services: corporate financial analysis, valuations, financial modeling, investment materials preparations (pitch decks, whitepapers).
The ultimate goal of Block Stocks is to help Startups and SMEs to raise capital and bring them on-chain by tokenizing their equity into the form of Equity Tokens.
Block Stocks is developing its proprietary solution called Liquid Stocks Protocol thanks to which the whole process of equity tokenization will be automated. We will perform the tokenization of shares certificates and provide custody services for companies thanks to our partnership with 3rd party financial companies. Thanks to the tokenization, the investors will be able to easily store and transfer their token investments in Block Stocks Wallets. At the later stage, after acquiring an appropriate financial license, Block Stocks is planning to offer a secondary market (trading platform) where investors will be able to trade their investments with each other.
Another major obstacle for Startups and SMEs looking for growth capital are information and transactions costs associated with looking for investors. Besides the technology, the main goal of Block Stocks is to build a large network of investors looking for investments in disruptive Startups and profitable SMEs.
Once the financial division would support company with all investment material preparation, the marketing team will take over. According to the recommendations concerning the offering structure prepared by legal division, the marketing team will screen our database to find the perfect match investors and facilitate the investment deal closure between interested parties.
Thanks to our complex consulting services and assistance from Legal, Finance, Marketing and IT divisions, Startup and SMEs will take part in a truly painless process of fundraising.
What is even more important – all of these consulting services will not incur any initial investments and costs, companies will only pay success fees in the event of successful fundraising.