Digital securities are not just the next mega-trend in cryptocurrency: they are the next mega-trend in capital markets. And the biggest pain point around digital securities will be deal marketing, and capital raising.
Today, I am excited to announce the launch of Issuance, a modern, “investors first” marketing platform for digital securities. Issuance is underway developing a platform that connects, engages, and matches digital securities issuers to authenticated, interested investors.
In parallel, I am pleased to share that we have executed a Listing Agreement with OpenFinance Network, the first U.S. based regulated security token trading platform, where our own digital securities will be listed and traded.
What are digital securities?
Digital securities are digital assets that are compliant with federal securities laws, run on the blockchain. Digital securities offerings, or DSOs, are compliant offerings that use securities exemptions such as Reg D, Reg A+, Reg CF, or Reg S to generally solicit their deals and raise capital.
With the ICO era winding down, the DSO era is heating up — quickly, and with force. Multiple tokenization platforms and digital securities exchanges are already live, and many more are in development. But what issuers really want, is the one thing neither provides: access to capital.
Our vision is to be the leading platform connecting digital securities issuers with authenticated, interested investors, effectively bridging the gap between tokenization platforms and exchanges.
Failure to Fund
For years, traditional online funding platforms have struggled to fund deals. Why? Because their platforms are issuer-centric, and because they aren’t inherently marketing companies.
Issuers who launched campaigns on such platforms found out the hard way that simply listing their deal was almost never enough to drive meaningful investment.
Users who are registered on such platforms are bombarded with pitches from deals they generally have no interest in, because the platform lacks a basic understanding of each user’s investor profile and deal preferences.
This model has resulted in a lose-lose-lose scenario for issuers, investors, and the platforms alike.
Issuance is taking a different approach to deal marketing, by offering unique incentives for investors to authenticate their identity, provide detailed information about their investor profile and deal preferences, and engage with digital securities issuers.
What types of investors will participate on the Issuance platform? All of them: institutional investors, family offices, hedge funds, accredited investors, and non-accredited investors.
By offering different incentives to different investors — such as first-look access to highly ranked deals (institutional investors) and payment in stablecoin (retail investors) — the Issuance platform will drive high engagement for issuers.
Moreover, by understanding the preferences of each individual fund or investor, Issuance will be positioned to uniquely match the right deals to the right investors, providing value for all parties involved.
A Real Revenue Model
Issuance will generate revenue through paid messages, strategic advisory, and aftermarket support services.
Issuers who use the Issuance platform will pay a fee per message to send their deal to individual investors. Issuance will capture this fee up front.
Issuance will also generate revenue through strategic advisory services for issuers who seek hands-on marketing support, as well as monthly recurring aftermarket support for successful DSO issuers.
Issuance will not be transacting digital securities on our platform. Instead, we will be driving investors from our platform to tokenization platforms, where investors will review and complete their subscription agreements for digital securities.
Issuance has launched its own DSO, which is available for a limited time to verified accredited investors via Reg D 506(c), and international investors via Reg S.
After our raise, we will convert our entire capital stack to digital securities, and list to OpenFinance Network.
For more information on the issuance platform, or to access our complete investment package, please visit www.issuance.com.
Join us in fueling the growth of the digital securities era.