Onboarding & Services
Entrepreneurs get easier access to less expensive capital, to realize quality growth and company expansion. Investors have a safe and solid investment instrument at their disposal.
It’s a significant cost saving compared to lending. This also bypasses the risk of long lead-times to find venture capital and eliminates the risk of an intrusive venture capitalist.
An STO provides for easy access, improved liquidity, higher efficiency, lower costs, and more transparency.
Consumers buy real shares in real companies or organizations that they otherwise never would be able to have access to. They can invest small amounts and get voting rights and dividend rights if desired.
Participating in an STO resembles very much investing in an Initial Coin Offering. The essential difference is that an STO eliminates the risks we see today in ICO’s, which is high volatility and no legal protection.
The four pillars of our solution
Together we make the required financial and legal preparations for your Security Token Offering. Amongst others, we perform a legal and financial scan of your business or asset. Our lawyers may propose changes should this be required.
We tokenize the shares after which you can access the portal. Security Token Management is executed via the portal where you can monitor the onboarding and administration of the tokens.
Pillar 1: Finance & Legal
The tokenization of a business is the process of issuing a blockchain (security) token that digitally represents a real tradeable asset. Basically, a security token is a digital share.
Before the actual tokenization process can start the entrepreneur and Liqwith will go through the following main successive phases:
- The idea.
- The business plan.
- The valuation of the business.
- The legal framework.
- Drafting an outline of the business.
- The actual tokenization of the business.
Liqwith will assist the business owner in each phase from beginning till the end and will make sure that the journey will be as smooth as possible. After this is completed the business can start the fundraising or the distribution of the security or utility tokens depending on the need of the business owner.
The tokenization of businesses carried out by Liqwith is completely legal and follows all rules and regulations as laid out by the Dutch Authority for the Financial Markets (AFM) which ensures that the investments of the investors will be secure and legal.
A team of legal specialists of our preferred partners can be utilized if required, but customers are free to bring in their own legal experts of course.
Apart from the legal aspects, thorough financial modeling needs to be carried out beforehand. Liqwith recommends the online valuation tool from Equidam, which provides very good results.
Pillar 2: Technical platform
Liqwith has developed an excellent equity administration platform that provides all the needed functionality to manage your business’s equity efficiently. The platform supports various models like a fund, a start-up (STO/ICO), a scale-up, or a social offering.
The equity administration platform is a front-end for all the blockchain transactions and communicates directly with the deployed smart contracts, which happens completely automatically. All transactions like transferring tokens, voting, and getting dividends is recorded on the blockchain which provides the needed transparency for all shareholders.
Onboarding (which includes Know Your Customer and AML) an investor is very easy, secure, and straightforward and an investor can start investing right away after registration. During the registration process, the platform will create a personal vault for the investor, which will be used to store the security tokens (digital shares) the investor bought. Only the investor has access to this vault, the platform only uses the vault if an investor needs to approve a transaction. The (security) tokens can be purchased from the platform with fiat currency (Euro), Ethereum, or Bitcoin.
The platform has extensive features like reporting, risk assessments, branding, dilution tables, minting/burning tokens, voting, and dividend pay-outs among others.
The smart contracts are deployed on the Ethereum Blockchain and support (automatic) whitelisting of new shareholders. This way only trusted and verified shareholders are allowed to transfer tokens.
The entire platform runs on the Amazon Web Services (AWS) and the Ethereum blockchain and is completely autonomous.
Pillar 3: Marketing
Attracting new investors can be a very daunting task for a company and is often a very complex process. Liqwith recognizes that this task is for specialists and if necessary, we have experienced partners that can help setting up a suitable campaign for the purpose.
If the business owner decides to launch their own campaigns, we still have a team of specialists available to help where possible.
Pillar 4: Support & services
At Liqwith we understand that service is a substantial part of a successful token launch or the tokenization of your business, therefor Liqwith offers a number of services that make sure that your business can focus on the important things. For example, we can help out with the dilution table or other items related to the tokenization process.
The equity administration platform is a very modern platform and is constantly updated and improved with new features and Liqwith makes sure that the platform stays compliant to all related laws and regulations. The platform is non-stop monitored by Liqwith and can grow instantly using all the available AWS features.
We comply with the most actual legal, financial, and social regulations, and if new regulation will be implemented, customers will benefit from the vast agility that inhouse development and knowledge brings.
Besides technical services, we can provide functional services as well, think of creating dilution tables, providing paper wallets if customers request, setting up smart contracts, providing 2nd line support, and so on. The list is limitless, and we would like to inform you about the possibilities in a personal conversation.
Is an STO the way forward for your organization?
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Get in touch
Want to get in touch? We'd love to hear from you. Here's how you can reach us...
EINDHOVEN OFFICE, High Tech Campus 32, 5656 AE Eindhoven, Room 3.304
+31 165 33 22 44