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Crypto, corporate finance and pizza - how do they fit together?
My first deep dive 🎉🎉 Corporate finance, blockchain and pizza - how do they fit together? Find out how it fits together in the article. We take a look at the possibilities for SMEs to raise capital outside the traditional channels. Check it out and let's discuss and share together in the comments and Discord community.
Digi Pal
October 02, 2023
Hello from the digital site and welcome to my first Deep Dive!
Patrick from Digi-Pal here. 👋👋
What you will learn today:
We will have a look at Corporate Finance on the Blockchain and if it is even possible with the current Regulation.
We start with a light entrance explaining the topics. We continue to have a look at a real-world example and head over to the related regulations.
Note that this article is specially written for the conditions of the German market. If you come from another country the regulations may be different.
Ready? Let’s go down the rabbit hole 🐇🐇🐇
The starting point is the question of whether it is possible for (especially) SMEs to raise money on the crypto market.
This explicitly does not mean that a company adds bitcoins or other coins to its portfolio. Rather, it is about the procurement of financial resources, only via a new and alternative path.
The question is which concrete financial instruments already exist and to what extent they comply with the legal framework.
In advance, yes it is possible, albeit limited. With this article, I give an overview of the current possibilities as well as an outlook on what is likely to be possible in the future.
Corporate financing for SMEs via STOs, so-called Security Token Offerings - sounds complex and it is. But as a result, there are great opportunities for SMEs already now and even more so in the future.
To simplify the issue, I have used the analogy of a pizza. Using this analogy, I will break down and explain the facts as well as the individual elements.
Later in the article, I will go into the practical examples as well as the legal framework.
At this point I would like to thank from the bottom of my heart the company Invesdor, in person Mr. Jens Siebert. He advised me on the preparation of this article and answered my questions.
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