Today, most of the businesses are struggling to raise capital from investors via the traditional fundraising methods, i.e., initial public offerings, due to entry barriers like high capital requirements, strict regulations, lengthy administrative processes, etc.
Similarly, the increasing fraud instances in alternative fundraising methods, i.e., initial coin offerings (ICO) have also made it difficult for businesses to raise capital directly from investors in a transparent and compliant manner.
DCI-A Turnkey Investment Solution for Businesses
To help overcome problems associated with traditional fundraising, DCI Ecosystem will provide asset tokenization functionality as an out-of-the-box feature to businesses, who are looking to raise capital but with the use of third-party vendors. Those third-party vendors (e.g. accountants, legal firms, notary providers, etc.) will be fully integrated/embedded into the DCI Ecosystem for a seamless user experience.
Businesses will get the option to choose among the more suitable third-party software/service provider listed on the DCI Ecosystem for their specific purpose based on the rating and feedback given by other users.
The asset tokenization facility provided by DCI Ecosystem will allow businesses to tokenize all kinds of financial securities such as
The traditional share/equity ownership
- Real Estate Development Projects
- Start-up Projects
- Commodities (e.g. gold, silver, painting, arts, whiskey, wines, etc.)
- And much more
The tokenized securities held by investors and custodians will enable them to have shared ownership, and at the same time, increase their trust in the token provider business. In the case of businesses, the tokenization of almost anything is an excellent opportunity for them to transform ostensibly illiquid physical assets like real assets, startup projects and raise the much-needed capital from investors.
DCI will also operate as a decentralized and democratic ecosystem with a self-governance framework embedded inside it to provide a secure and transparent trading environment to everyone, including investors, businesses, and service providers. Here is the complete Step-by-Step STO Development Process of DCI Ecosystem:
Step 1: Need Capital
- Businesses (e.g. startups, existing SMEs, other public, private companies) would be required to get registered on the DCI Ecosystem.
- Businesses would go through the registration process on DCI user interface and also provide information pertinent to their business (e.g. company description, website, address, financial statements, etc.)
Step 2: Eligibility Check
- The business will complete the fund's request form.
- The form will require detailed financial information about the business (e.g. provision of financial reports).
- Once the request is submitted, a dedicated team of DCI Ecosystem comprising of accountants, financial analysts and legal/compliance consultants will access the request.
- In the future, some of this basic assessment work will be done with the A.I. help on DCI to improve speed and increase automation.
Step 3: Feasibility Study Completion & Set Pricing
- Once the feasibility analysis is done, the process will follow with formal security valuation.
- The token value, the return on investment and payment terms will be assessed by an external third-party service firm. A legal team will help translate those terms into the smart contract/security token.
Step 4: Launch of STO
- The approved tokenized request will be offered to the investors via Security Token Offering (STO).
- The smart contract of the digital security tokens will ensure the fulfillment of legal/contractual requirements.
Step 5: Token Listed on DCI Ecosystem Exchange and also on other exchanges
- The digital tokens issued will be listed on DCI Exchange first in order to provide its users with a competitive advantage and later to other exchanges.
To unlock more secrets about DCI, please visit the DCI Ecosystem and register on the website: Register Here
Originally published on: DCI Ecosystem Blog