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.Local market frictions, the lack of financial infrastructure and market liquidity make the survival of small businesses practically impossible.
The businesses, especially startups and SMEs in developing countries also face problems like:
- Economies in developing countries do not provide adequate support and assistance to growing enterprises (e.g. SMEs, startups or local businesses, etc.) in terms of supporting their finance needs.
- The traditional fundraising methods like initial public offerings (IPOs) have high entry barriers for businesses such as high annual capital needs, lengthy administrative process, stringent legislation, etc.
- The financial institutions like banks’ reluctance to issue credit due to unavailability of collateral to support business loan is also a significant issue for businesses today.
- The increasing fraud instances in alternative fundraising methods like Initial Coin Offering (ICOs) today have also made life difficult for companies to raise funds.
A practical example is a small ancient business in Iraq that produce pottery hands made products for 300 years. This family is now struggling to find the funds to repositioning the business, look to foreign market opportunities and continue a tradition that otherwise will disappear. This is where DCI Ecosystem will provide an opportunity that today does not exist.
DCI Ecosystem — A Turkey Investment Solution for Investment Seeker Businesses
Seeing the investment seeker business problems, DCI is working to create the most trusted, secure and forward-looking cross-asset investment ecosystem that will allow investment seekers to raise funds directly from the investors through a fully-compliant fundraising method called security token offering (STO).
How can Investment Seeker Businesses Raise Capital Directly from the Investors on the DCI Ecosystem?
By leveraging blockchain technology, DCI Ecosystem will allow investment seeker businesses to tokenize:
- The traditional share/equity ownership
- Real Estate Development Projects
- Start-up Projects
- Small-Medium Enterprise Projects
- Equity Type instrument
- Non-equity type instrument (e.g. debts)
- Commodities (e.g. gold, silver, painting, arts, whiskey, wines, etc.)
The asset tokenization facility present in DCI Ecosystem will allow companies to tokenize their business ownership in the form of equity shares on a blockchain. All kinds of financial securities like bonds, equities, real estate, etc. can be easily managed and tokenized via blockchain.
The tokenization facility will be provided to investment seekers as an out-of-the-box feature, but with the use of third-party vendors in DCI Ecosystem.
These third-party vendors will be fully integrated with the ecosystem via third-party API support functionality to offer a seamless user experience.Investment Seeker businesses would also get the option to choose suitable third-party software/service provider (e.g. accountancy, notary, etc.) among the available vendors listed on the DCI Ecosystem to support their tokenization journey.
A fair scoring system would also be present in the DCI Ecosystem that will allow investment seeker businesses to rate third-party products or services once used.
The ratings & reviews given by the users for vendor products or services will increase transparency in the entire ecosystem and forums will also be provided to the users for further discussions.For tokenizing company financial securities (e.g. bonds, projects, etc.), the businesses would have to raise a tokenization request. Once the security tokenization request is raised, it will be assessed, ranked, rated, and if all checklist requirements are satisfied; DCI Ecosystem will tokenize the request successfully.
Benefits of DCI Ecosystem for Investment Seeker Businesses
- DCI Ecosystem offers a completely new, cheaper, easier, faster, more efficient way to raise capital. A turnkey solution.
- Companies can raise capital for their business projects, new product development & solutions with Security Tokenization Offering (STO) — Asset tokenization in a regulated and transparent trading environment in DCI Ecosystem.
- Access to accredited investors, anywhere in the world (24/7).
- Compliance with local laws and automated investor accreditation (e.g. KYC, AML, CFT act)
- Access to Third-party products/services (e.g. notary, accountants, lawyers, etc.) easily to conduct STO in a compliant & legal manner.
- Third-party products/services can be added via a simple drag and drop motion to the portfolio by DCI users (e.g. investors and investment seekers).
- Powerful User Interface to easily manage the security tokenization process for businesses(e.g., see analytics dashboard, financials, STO performance, transparent graphical live progress of an STO, etc.)
- Advance Wallet functionality (e.g. money in/out, payments, invoices, account management, APIs, security tokens recurring smart contract payment, etc.)
- Access to various paid services such as marketing facilities to promote business within the DCI Ecosystem (e.g. Advertisement with the specific target audience and geographical area)
- Custodian and notary services made easier with the blockchain
- Free or zero cost Registration for investment seeker businesses. No hidden fees.
- Early Joiners will get early access to all premium DCI Ecosystem Investment & STO services
- Escrow Account/Custodian facility.