tZERO can help your company raise capital on your terms through a variety of offering structures. We offer tailored services and solutions to best position your unique offering.
Companies can design an offering that meets their strategic goals and needs. Our services include:
tZERO supports a number of paths to raising capital
Regulation A+ allows U.S. or Canadian-based companies to offer and sell securities to the public, but with more limited disclosure requirements than what is required for publicly reporting companies. Regulation A+ allows companies to raise money under two different tiers.
Regulation D under the Securities Act provides various exemptions from the registration requirements, enabling companies to offer and sell their securities without having to register the offering with the SEC. tZERO supports two of these exemptions:
After 90 days, the shares can be resold among accredited investors. The shares are able to be freely resold following a 1-year lockup to retail and accredited investors.
Regulation CF allows U.S.-based companies to offer and sell securities to the public, but with more limited initial and ongoing disclosure requirements than what is required for publicly reporting companies.
tZERO offers services and solutions that help private companies raise money and enjoy the benefits of secondary market liquidity.
We offer a number of paths to secondary liquidity.
We enable companies to raise capital through a traditional offering structure or through innovative methods such as tokenization on the blockchain / fractionalization. Additionally, we can digitize existing investors and trade prior capital raises.
Our technology solutions enable companies to host an offering on their website allowing for consistent branding of the landing page and online investment process.
tZERO’s wholly-owned broker- dealers have licenses in 53 U.S. states and territories and can serve as broker-dealer of record and/or placement agent for primary raises.
We provide access to our investor network as well as our broker-dealer subscriber network, which includes over 70,000 accredited investors. We also provide investor accreditation and other diligence services through our subsidiary, VerifyInvestor.com.
We can evaluate integrations with third-party management and investor activity platforms.
We follow strict FINRA and SEC compliance protocols, conduct securities reviews, and follow general best practices.
If required, we can provide recommendations to ensure your securities offering solicitation and advertising follow applicable regulations.
Our experienced team provides guidance to support companies’ funding efforts before, during, and after issuance.
tZERO’s proprietary technology can fractionalize and/or tokenize a company’s capital raise or existing capital structure, including new or existing funds and illiquid assets.
Fractionalization refers to the process of dividing a high-value asset into smaller, tradable units, allowing multiple investors to own fractions of the same asset.
For example, a work of art worth $10MM can be fractionalized into a million shares at $10/share. Any asset can be fractionalized and doing so allows the asset owner to appreciate the following benefits:
Fractionalize your asset to democratize access
Fractionalization makes assets more divestible and tradeable. Fractionalization extends beyond equities to assets, such as real estate, funds, art, film, and more, fundamentally changing how we invest in these assets. It opens up access to illiquid assets that were previously reserved for the wealthy, ultimately expanding the opportunity to own.
Price Discovery - Identify the market value of your asset.
Enhanced Liquidity - Boost liquidity by dividing your asset into multiple shares.
Democratized Access - By fractionalizing an asset to a lower price point than possible without fractionalization, the asset can attract attention
from investors who might otherwise not be able or qualified to participate in a high-priced, high-risk purchase.
Monetization Opportunities - Monetize your asset.
Tokenize your securities in a regulatory-compliant manner
Tokenization is a process that utilizes innovative technology to add a digital element to a security. This can be in the form of immutable ownership records visible on a blockchain, or by creating a security solely issued on a blockchain with built-in rules known as a smart contract that governs all aspects of the blockchain.
Increased Transparency - Cap table transparency for both companies and investors.
Streamlined Back Office Processes - Reduces costly manual back-office processes.
Greater Customizability - Issuers can customize their offerings through smart contract technology: restrict investor type & location, grant/withhold voting rights, etc.
Automated Corporate Actions - Investor reporting, distribution, and corporate transactions (i.e. dividend payments, stock splits) are automated.
Instant Settlement - Settlement of securities is instant.
Regulatory Compliance - Smart contract technology allows for regulatory and legal requirements to be programmed into the set of rules governing the blockchain.
tZERO’s technology solution enables companies to host their offering on their own website giving them the power to customize and brand the offering to create a seamless, personalized user experience.
We provide access to our ecosystem of high-net-worth and retail investors, which includes a network of over 70,000 accredited investors, as well as our broker-dealer subscriber network.
VerifyInvestor.com meets the federal requirement of taking the appropriate “reasonable steps” to verify accredited investors and securely manage their confidential information - safe from unauthorized and prying eyes. Verify Investor helps companies increase their compliance and cost savings through its investor due diligence services, which can be custom tailored.
Federal laws require that certain companies raising money through private placement capital raises where they generally solicit to verify that their investors are accredited investors. A simple questionnaire is not enough. Companies must take further steps to prove their investors are accredited investors with potentially serious consequences for failing to do so. VerifyInvestor.com, a tZERO company, is a leading provider of accredited investor verifications.
That is where VerifyInvestor.com comes in.
