Financial marketing firm CrowdfundX announced on Wednesday the launch of its new security token offering (STO) advisory services that were specifically created to support qualified issuers raising capital. The company reported that it has spent the past nine months marketing STOs by providing strategic introductions between its issuer clients and 220 U.S. crypto hedge funds, venture capital firms, and institutional investors.
“With the observation that most STOs are struggling to raise capital, it has become apparent that there is a lack of competent firms to provide these critical services. With CrowdfundX’s new STO advisory services, issuers can now partner with a proven firm that has unique expertise and insights into security tokens and STOs.”
Darren Marble, CEO of CrowdfundX, also stated:
“Having marketed some of the industry’s most notable STOs and Reg A+ IPOs, we know firsthand that the success or failure of a particular deal is often determined in the months leading up to the offer. Mistakes around deal structure or marketing strategy can be fatal—and yet in many cases, they could have been prevented with the right partners and proper strategic planning.”
Marble recently commented on the trends and observations in the U.S. security token market. As previously reported, in the write-up, Marble made various interesting statements about the emerging security token market in the US. He differentiates STOs from the more generic initial coin offerings (ICOs) as STOs are clearly regulated security offerings in the U.S. Marble also shared with CI:
“Security tokens are digital assets that are compliant with federal securities laws [and] run on the blockchain … STOs, offer a new, compliant way for companies to raise capital. The beauty of an STO is that any company can run one: a blockchain company, non-blockchain company, startup or enterprise.”
CrowdfundX added that issuers may now use advisory services in 3-month minimum contracts to mitigate risk, increase their likelihood of success, and raise more capital.
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