How Security Token Issuers Can Build Investor Whitelists From the Whitelist0x Investor Database.
Whitelist0x enables security token issuers to customize a targeted whitelist of investors for their offering by additional selects such as income, age, marital, and homeowner status delivering their next best prospects.
Whether an issuer is looking forward to reaching young adults that are just starting to invest or seniors who have been investing in financial securities for years, they can trust the Whitelist0x Investor Database to show them the right path to increase investment contributions for their security token offering.
The Whitelist0x Investor Database combines a wide range of sources to deliver the most accurate whitelist of investors from across the globe. Most of the names on the whitelist are compiled from the Company’s Interest Submission Form used to onboard investors. The team then enhances the data with demographic and lifestyle information from its database.
“We are trying our best to control the atmosphere by not allowing people to become email marketing platforms overnight. Thus, we do not have any accredited investors list for sale. Although we do give our issuers the ability to customize their whitelist using our data, such whitelist can only be used on our platform using either our IRM or CRM to create email and text campaigns. Issuers cannot export a whitelist created on our platform.” Said Laja.
Accredited Investors.
Under the Regulation D Exemption, Rule 506 [ C ] is by far the most widely used exemption for raising capital today. The primary reason is because security token offerings that fall under this Rule are allowed to do general solicitation, which means an issuer can advertise its offering, list it on their website, use a security token platform such as Whitelist0x, and/or use social media, email, seminars, radio, TV, print, and any other means to market their offering.
However, all investors in this scenario must be accredited and there are enhanced requirements for qualifying investors. There is no limit to the amount that can be raised.
With Whitelist0x, security token issuers can acquire accredited investors who are individuals and institutions that meet certain requirements for the purpose of purchasing securities such as security tokens that are not offered to the general public. Perhaps an issuer wants to raise funds privately and wouldn’t want to register but file with any securities regulators such as the SEC, Whitelist0x has got a robust database of accredited investors issuers can utilize.
Institutional Investors.
Another thing is that, issuers can as well utilize the Whitelist0x Investor Database to get their security token offering in front of institutional investors, the big guys on the block — the elephants which include pension funds, mutual funds, money managers, insurance companies, investment banks, commercial trusts, endowment funds, hedge funds, and some hedge fund investors.
Individual Investors.
Security token issuers can leverage the Whitelist0x Investor Database to also reach more than 14.4m non — institutional or individual investors [ accredited and non — accredited ]. These are pretty much everyone a.k.a. retail investors who buy and sell security tokens through security token exchanges also known as the secondary market.
These are the people or organizations that manage their own money, usually to plan for retirement or to save for a large purchase. This Investor Database is more ideal for issuers going for the Rule 506 [ B ] which allows for a private offering only to investors with whom the issuer has a pre-existing relationship. Up to a maximum of 35 investors may be unaccredited, but audited financials would be required if there are any non — accredited investors. There is no limit to the amount that can be raised.
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Whitelist0x is what it is :: a Whitelisting Firm. That says it all. However, there’s more beyond the name. Whitelist0x focuses on helping small businesses go public to raise funds via the security token offering mechanism. Unlike similar security token platforms that only offer technical solutions, Whitelist0x enables private companies to launch extensive public relations, integrated marketing, and investor relations campaigns, draft various offering documents such as prospectus, file with securities regulators in the U.S. and various other jurisdictions, and then issue security tokens that represent shares and allow shareholders a stake in their company’s equity as well as a share in their profits in form of dividends, interests, and so on.
