There have been a series of articles and interviews that feature those entrepreneurs who have experience raising funds through the traditional fundraising process, which entails a lot of traveling from city-to-city meeting potential investors with presentations, and of course the new toekenization through blockchain technology. Many are starting to see this Fintech alternative as a more efficient methods. Here are some ideas we gathered.
Looking at the complexities of raising capital, and more importantly the hours of time spent with bankers, traveling and restating the same presentation 50 to 100 times is an exhausting experience. One startup in Tokyo sat down with a partner at Classiarius and explained that he had over 300 meetings in the past year, and made little progress. He does note that the key issue when being based in Tokyo is that Japanese investors want to be talked to, explained to and of course, as they do in many situations, take time to make a decision. Japanese do take their time in such a process. How can we get past this long and time-consumer processes?
A key alternative is as stated the tokenization method that if used, would allow a company to use its total assets, the asset value of the company to be reflected in the token price. The token holders would have a claim on the real portion of the firms assets, much like the traditional securities created by the company. As the performance of the company improves, the tokens trade well, there is a fundamental valuation here, not just pure speculation.
We will be doing a series on tokens and the evolution of capital alternatives. Surely there will be efficiencies in the coming years that will allow a greater number of start-ups to efficiently come to markets. We will be using Classiarius and its sister platform to introduce start-ups as well.