CrowdfundX, a California-based financial marketing firm which utilizes artificial intelligence and digital marketing to acquire large investment capital, has recently announced its new security token offering (STO) advisory service. They offer a minimum three-month contract to reduce risk, acquire increased capital, and propel their clients to success.
CrowdfundX— the rapidly expanding enterprise which has witnessed much success in 2018— will now offer services which specifically focus on STO strategy. During the first nine months of 2018, CrowdfundX has assisted with various STOs by connecting them with 220 venture capital firms, institutional investors, and US crypto hedge funds.
A Successful History in a New Sector
One of their clients includes True Leaf, a start-up whose aim entails the manufacture of federally approved medicinal cannabis products for the health and well-being of both humans and animals throughout the US and Canada. In late 2017, the US Securities and Exchange Commission (SEC) qualified True Leaf’s offering statement, and two months later it raised a total of $14 million during its Regulation A+ public equity offering.
Not every IPO or STO is as successful as True Leaf, however. But the marketing and experience of CrowdfundX aims to change just that.
[su_quote cite=”Darren Marble, the CEO of CrowdfundX”]With the observation that most STOs are struggling to raise capital, it has become apparent that there is a lack of competent firms to provide these critical services. With CrowdfundX’s new STO advisory services, issuers can now partner with a proven firm that has unique expertise and insights into security tokens and STOs[/su_quote]
The CEO made further remarks which suggest the focus of their attention will be on the strategy developed prior to the execution of an STO, where the proper preparation can secure success:
[su_quote]Having marketed some of the industry’s most notable STOs and Reg A+ IPOs, we know firsthand that the success or failure of a particular deal is often determined in the months leading up to the offer. Mistakes around deal structure or marketing strategy can be fatal—and yet in many cases, they could have been prevented with the right partners and proper strategic planning.[/su_quote]
A Promising Perspective
Marble also made some recent remarks via linkedin which summarize his optimistic view concerning the current trends of the US security token market. Ultimately, he has observed a significant increase in the number of hedge funds and traditional venture capital firms who have entered the cryptocurrency market. Many of which maintain a specific focus on STO funds.
Yet a problem continues to remain. STOs take a long time, and have serious hurdles to overcome given the current regulation they face not only from the SEC, but across the globe. Nonetheless, the expert’s view remains optimistic:
[su_quote]Security tokens are digital assets that are compliant with federal securities laws [and] run on the blockchain … STOs, offer a new, compliant way for companies to raise capital. The beauty of an STO is that any company can run one: a blockchain company, non-blockchain company, startup or enterprise.[/su_quote]
What do you think about the new service offered by CrowdfundX? Will this be enough to ensure successful STOs and consequently, to pave the way of legislative compliance for security tokenization? Let us know what you think below.
Image courtesy of CrowdfundX.