Investor Guide

Traditionally, raising capital has been a long and arduous task for people and businesses needing a cash injection into their business, be they start-ups, SME’s or established firms.

The traditional source of funding for this would include banks, angel investors and venture capital firms, limiting those business’ exposure to other types of investors.

 

Businesses have looked for alternative ways to find investment rather than those traditional methods and crowdfunding has become increasingly popular; crowdfunding is a method of raising capital through the collective efforts of a large pool of individuals, primarily sourced online via social media. The crowdfunding platforms leverage their networks for greater reach and exposure. Tokenise will allow companies to tokenise their equity and raise capital.

 

So when you invest in a Tokenise equity fundraise business you will receive equity in the form of tokens for the amount you have invested. If the business succeeds, your tokens will be worth more that what you paid for them and you may be able to sell these tokens on or receive a dividend payment in the future. If the business does not succeed, as many do not, you may lose some or all of your investment.

The Risks

Just like any other investment there are risks involved and you must be aware of these before you start investing.

Some of the main risks are:

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Loss of Capital

The business you invest in may fail meaning you will not see any return on your investment and you may lose some or all of your money.

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Illiquidity

Even if the business is a success it is likely to be illiquid for some time while the business is growing, you may also not have the opportunity to sell these tokens.

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Dilution

This is where the company decides to sell off more equity in the future to raise further capital, meaning the percentage of equity you hold will decrease.

For more information on the risk involved in investing please read our Risk Warnings.

Diversification

Choosing to invest in the types of businesses displayed on Tokenise should only be done as part of a diverse portfolio. This means you should only invest a relatively small portion of your investable capital in such businesses, or rather than larger amounts in one or two businesses choose smaller amounts over multiple businesses.

Choosing to Invest

Asset 1@4x

This part of the platform will be released shortly. You will need to read and understand the risks involved in investing and take a short Appropriateness Test. After this you will self-certify as an investor type so we can understand your threshold to invest. From here you will be able to view our investment opportunities, look into the campaigns and perform your own due diligence on any interesting opportunities.

Asset 1@4x

When you have decided to invest the first time we will need to take you through our due diligence process, ensuring you are who you say you are and you are eligible to invest. Once this process has been completed successfully you will be able to create a digital wallet and deposit funds ready for your investment.

Asset 1@4x

Different campaigns will allow different minimum amounts of investment, once you have clicked to invest and chosen the amount, the funding will be allocated to that campaign and you will be sent your Subscription Agreement for signature.

Asset 1@4x

Once the campaign has reached it’s target or run it’s course the funds will be transferred to the business and you will be allocated your tokens. If it fails to reach the threshold your funds will be returned to you.

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