Atomic Capital has officially released an open source digital security readiness checklist to facilitate compliant and successful digital security issuances. The company also unveiled their transparency and reporting tool, providing businesses with a means to clearly demonstrate their Key Performance Indicators to potential investors.
Atomic Capital’s Digital Security Readiness Tool Explained
With such rapid growth, they’ve noticed that security token issuers aren’t always aware of the requirements that come with a Security Token Offering (STO). Many tasks in areas such as business development, the technical realm, and legal obligations are confusing, difficult, or simply unknown by those who wish to issue security tokens.
To combat this, Atomic Capital has just released a new tool to help issuers with the current complications seen in issuance: an open source digital security readiness checklist.
A preview of Atomic Capital’s Readiness Checklist
Comprised of three different phases— which have 2-3 sections including business, compliance, and fundraising— the checklist aims to show issuers precisely what they need to do in a compliant and effective manner.
The following is a breakdown of the different phases.
Phase 1: Business and Team Review
Business Info: 7 tasks to include fundraising, auditing, investor base up to the current point, along with tranche strategy and team biographies.
Compliance: 48 tasks which draft a rough but thorough outline of the necessary regulatory compliance.
Phase 2: Issuance, Technical, and Compliance Readiness
Business Info: 3 tasks that cover a description of the security and its dividend structure.
Compliance: 7 tasks that entail the specific offering type and jurisdiction, pitch deck, prospectus, financials, KYC / AML procedures, etc.
Fundraising: a total of 36 tasks which provide specific details on the security to be traded.
Phase 3: Fundraising Strategy
Business Info: 16 tasks including use of funds, marketing, communications strategy, a timeline of the offering, and additional plans regarding the fundraising operation.
Fundraising: 3 tasks to include a signed preliminary ATS agreement, investor target information, and inclusion/exclusions, along with liquidation preference.
Atomic Capital and the Impending Surge of the Security Token Industry
Tools such as Atomic Capital’s Digital Security Readiness Checklist will only propel the industry forward, helping both companies and investors reach benefits which have otherwise been out of reach.
In fact, along with the recent checklist, Atomic Capital has announced the development of a transparency and reporting tool which will provide investors with clearer information concerning potential investments.
Businesses will be able to use the tool to demonstrate their business growth, clients, revenues, and other Key Performance Indicators to minimize any imbalance when it comes to information disclosure.
Notably, the SEC has no such requirements when it comes to the fundraising of private companies. Yet Atomic Capital has set their own bar, taking an innovative initiative in making the new security token industry even more accessible to those who wish to enter the space.
What do you think of Atomic Capital’s Readiness Checklist? Will these sorts of tools be adopted by other security token enterprises, bringing the industry to a higher level? Let us know what you think in the comments below.
Meet Tim. Tim is a co-founder of The Tokenist. Originally from Kalamazoo, Michigan, Tim is a mechanical engineer by training and has been investing his whole life. He started his career with GE in engineering and operations management where he held various leadership roles before leaving to pursue an MBA (he is a proud former co-chair of the Milton Friedman Group at Chicago Booth). After business school, Tim spent several years with Baird Capital where he made private equity investments in consumer and industrial companies. He left Baird to found Protective Technologies Capital in 2018, where he continues to make private equity investments in family businesses looking for help with succession planning. Tim lives in Chicago, where he enjoys watching Michigan football and basketball and traveling with his wife Kristen. Like Sia, he also likes telling jokes. However, his wife adamantly insists that he not share his “dad jokes” publicly so he reluctantly sticks to writing about finance and technology.