What is DIPO & How does it work?
Small and medium-sized businesses (SMBs) are widely known as the “middle class” of the economy, since they usually take over 90% of a country’s total number of enterprises, yet their GDP contribution is less than that of big enterprises. SMBs are unattractive to investment and credit institutions, IPO projects are usually too expensive for them, that’s why they don’t have much chance to make a business leap in most countries. Understanding those problems, LiveTrade have dedicated in developing a better, more flexible fundraising solution that can help SMBs in practice. That leads to the design of DIPO investment model.
Digital Initial Private Offering is a new capital calling solution developed by LiveTrade with the purpose of aiding SMBs in acquiring quick and easy capital. By applying blockchain technology benefits and financial knowledge, DIPO can connect a greater range of investors to SMBs from which it can open up new investment projects and trades that couldn’t happen in normal circumstances.
DIPO operates in the 4 basic steps:
1. Appraisal: The enterprise who wishes to start its fundraising project will submit their company profile, their missions and business plans to LiveTrade. LiveTrade will start to process every bit of data carefully, and with the help from its appraisal partners, we will rank your investment potentials, rate of return. If everything checks out, we’ll move the project to step 2. If not, LiveTrade & its partners will offer consultancy, make up, brand building and marketing services to increase the investment attraction.
2. Approval: This is when LiveTrade finally decide whether the company’s project is qualified and ready to be listed for capital calling.
3. Tokenize SMBs stocks/securities: LiveTrade proceeds to digitalize a specified number of stocks/securities. The digitalization is necessary for the company’s stocks or securities to be quickly and easily traded.
4. Token listing and trading: The tokenized stocks/securities will be listed on blockchain-based exchange system to be reviewed and trade by many investors, individuals and institutional a like. When investors buy the token, they will own the corresponding amount of stock/securities. The money will be promptly allocated to designated bank account.
With tokenized stock and securities, SMBs can easily call for capital on the exchange system. They don’t have to go through the painful process of IPO and still get the necessary funds for expansion or development. The process will be digitally and automatically operated. It takes almost no time for SMBs to receive the needed capital, and they can go for another fundraising with the same token anytime in the future with minimum fees.
Moreover, with recent LiveTrade strategic partners, VNDC and Nexo, enterprises can make instant crypto loans with minimum interest rate, no credit check required, and flexible repayment terms. You can find out more about this service here.
LiveTrade has recently deployed DIPO in one of the brightest investment destinations in Asia: Vietnam. This promising market will be a launch pad, a perfect starting ground for LiveTrade to expand the DIPO services throughout Asia and the world, creating a rapid and stable economic growth for all countries and territories.
If you want to further look into DIPO, visit our official website for it at: https://dipo.livetrade.io/
