Small and Medium Scale Enterprises (SMEs), private and public companies are struggling to raise funds in today’s market. This is mostly due to local market frictions such as poor economic climate and the lack of financial infrastructure to support local businesses to develop.
Some of the challenges include:
- Traditional fundraising method like initial public offering (IPO) has high barriers to entry for businesses such as costs, lengthy complex processes, strict regulatory requirements, poor annual capital, etc.
- Economies in developing countries do not provide the necessary means to support and finance growing businesses (e.g. Fintech, or local manufacturers)
- The reluctance of financial institutions such as banks to issue a credit to startups due to unavailability of collateral to support their business loan
- The complex and lengthy processes to raise funds through financial institution requires SMEs to find an alternative source of finance.
- The increasing fraud instances in alternative fundraising methods like Initial Coin Offering (ICOs) have also completely shut down the alternative way to raise funds.
- And so forth…
DCI Ecosystem — A TurnKey Investment Ecosystem Solution for Investment Seeker Businesses
Looking at such problems faced by investment seekers, DCI is working to create the most trusted, secured and forward-looking cross-asset investment Ecosystem that will allow investment seekers to raise funds directly from investors through an innovative fundraising method called Security Token Offering (STO).
What is Security Token Offering (STO)?
A security token is, in its simplest form, a digital representation of a real tradable asset. Security tokens are securities with an electronic certificate. This means cheaper, faster and easy to manage. Thanks for being on the blockchain they are global in nature, enabling liquidity and reducing transaction costs.You can tokenise company equity or a non-equity type of securities (debt instruments).
Rules are embedded in the smart contract (token) as with the traditional securities enforced by the code.Security tokens are generally issued during the security token offering by the companies in a public offering to the investors.
Security Tokens as the traditional securities can be design to mirror:
- Company shares
- Equity type
- Profit-sharing or ownership rights
- Buyback rights
- Non-equity type (e.g. debts instruments)
How will the DCI Ecosystem help Investment Seeker Businesses to Raise Capital from Investors Directly?
By leveraging blockchain technology, DCI Ecosystem will allow investment seeker businesses to tokenize:
- The traditional share/equity ownership
- Real Estate Development Projects
- Start-up Projects
- Small-Medium Enterprise Projects
- Equity Type instrument
- Non-equity type instrument (e.g. debts)
- Commodities (e.g. gold, silver, painting, arts, whiskey, wines, etc)
DCI Ecosystem will allow the tokenization of anything to give liquidity back to the owner and where share ownership provides some value to both the token holder and the custodian.DCI will provide the tokenization facility to investment seekers as an out-of-the-box feature via the use of third-party vendors.
The third-party vendor software/services (e.g. accountancy, notary, legal STO advice, etc.) will be fully integrated into the DCI Ecosystem for seamless user experience.Investment Seeker businesses would also get the option to choose the more suitable third-party software/service provider among multiple options listed on the DCI Ecosystem for their specific purposes with the help of a scoring system.
Each provider will be reviewed by its users enhancing transparency and forums will be made available for further discussions.DCI will be a decentralized and democratic ecosystem with a self-governance framework embedded into it. This will provide a more secure, transparent environment for everyone.
Benefits of DCI Ecosystem for Investment Seeker Businesses
- Businesses projects, new product development and solutions can now access to funds with Security Tokenization Offering (STO) — Asset tokenization in a regulated and transparent trading environment
- DCI Ecosystem offers a completely new, cheaper, easier, faster, more efficient way to raise capital. A turnkey solution.
- Access to investors from anywhere in the world (24/7).
- Compliance with local laws and automated investors accreditation (e.g. KYC, AML, CFT act)
- An efficient, transparent and cost-effective solution for both investors and investment seekers.
- Custodian and notary services made easier with the blockchain
- Third-party services available to investment Seekers (e.g. Legal, accountancy.)
- Management of account directly on DCI Ecosystem
- Free or zero cost Registration for investment seeker businesses. No hidden fees.
- Early Joiners will get early access to all premium DCI Ecosystem Investment & STO services
- Escrow Account/Custodian facility.
- Powerful User Interface with an analytics dashboard, financials, STO performance, transparent graphical live progress of an STO etc
- Regulatory reporting facilities out of the box (e.g. reporting to the investors)
- Access to Third-party services such as accountants, lawyers, notary etc.
- Access to Third-party products available on the DCI ecosystem with simple drag and drop motion.
- Powerful User Interface to easily manage the security tokenization process
- Advance Wallet functionality (e.g. money in/out, payments, invoice, account management, APIs, security tokens recurring smart contract payment etc.)
- Access to various paid services such as marketing facilities to promote their businesses within the DCI Ecosystem (e.g. Advertisement with the specific target audience and geographical area)