DIPO: A new attractive capital calling method for SMBs

Tiến Dũng Hoàng
LiveTrade
Published in
4 min readJun 9, 2020

👀 SITUATION

The owners of a business usually have to struggle through many different problems and capital is one of the most exceptional and overseeing components. The two most popular ways to raise funds are from loans and from equity. As they have to deal with the bank only rather than many stock regulators, associates and creditors, raising capital from loans is usually also a simpler choice for SMBs. This comes with a price though — debt capital may seem painless at first, but the owners will soon realize the side effects it has on their businesses: it decreases the cash flow, which is the heart and center of any SMB.

We also have another capital raising method: capital from equity, in which a company can raise funds by selling its shares of stock. An initial public offering (IPO) refers to the method of selling a private corporation’s shares to the public in a new stock issue. Public share issuances allow companies to raise capital from public investors. Nevertheless, public companies must comply with certain laws and regulations of the Securities and Exchange Commission (SEC) and then battle their way to get themselves promoted and attract stock buyers.

🌟 DIPO

This is why LiveTrade gives companies an economical and time-saving alternative to IPOs. With a target to comply with SEC (Reg D), DIPO, known as Digital Initial Private Offering, is another smart choice for companies to gain access to a range of trustworthy investors to collect the funds they need to grow their businesses. DIPO lets SMBs save the expense of fundraising while also maintaining the accountability and protection every investor needs from their investments.

🎨 DESCRIPTION OF SERVICE

DIPO projects will be performed as follows:

• LiveTrade will review all business applicants and assess their investment quality;

• They will create digital shares based on the valuation of each company and/or produce an equity offer for each company that will be reviewed by DIPO marketplace investors — investors will decide whether to buy shares;

• A DIPO will then be conducted in the LiveTrade Exchange, with securities given to investors and money flowing to companies;

• Investors can use the LiveTrade Exchange for trading the stocks of companies worldwide 24/7/365.

🎯OBJECTIVES

• Supplying inexpensive capital to SMBs;

• Providing new investment market to investors;

• Applying technology to save the cost and time ;

• Settling transactions into bank accounts of investors in a matter of minutes;

• Complying with the strictest standards and regulations applicable in our operating locations.

👍🏻WHY DIPO?

LiveTrade would be a viable option for SMBs that can not access conventional sources of capital (Banks and other Fintech loans). We understand that cash flow is essential to every company and conventional loans (aka debt-financing) lower an SMB’s cash flow. SMBs will be able to collect the money they need for a small cash outlay and trading equity for fees at LiveTrade and repeat at NO Expense when they need more money.

DIPO offers a new investment opportunity for investors and also provides a long-term guarantee since DIPO complies with SEC regulations. In reality, there are a lot of channels for investors to pour money into. These traditional investment channels, however, have gradually leveled off, and making large amounts of money is really difficult and time-consuming. Investors will also have a variety of options and capital types to invest in.

DIPO will connect investors and SMBs and help to promote the market in a beneficial and potential way. Stay tuned to learn more about our DIPO service and follow other social channels of LiveTrade to keep up with the latest news.

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