In a world in which DeFi has largely democratized access to novel revenue streams, it should come as no surprise that fundraising opportunities are now seeing the same windows take form.
Today, a company called Fairmint opened it’s doors to the public in the unveiling of an end-to-end Continous Securities Offering.
— Fairmint (@FairmintCO) April 10, 2020
“Unlike traditional equity fundraising, a CSO runs continuously, which gives everyone in the world who loves your product and mission the ability to invest in your company at any single time, just by hitting an “invest now” button on your app or website.”
Here’s a look at some of the benefits of running a CSO:
- Founders – Funding + ownership as CSO securities provide investors with financial rights but no governance rights.
- Investors – Access to high-growth companies early in their lifecycle with more liquid than equity.
- Stakeholders – Access to financial products with wealth-building potential.
Unlike other tokensale platforms, Fairmint offers a full tech stack to allow anyone to quickly and intuitively integrate a CSO directly into their website or product. This is akin to someone like Amazon incorporating an “Invest Now” button right by their Prime delivery option backed by a portion of future revenue. Aside from what we covered in our first article on Fairmint, the public launch comes equipped with:
- Fully audited smart contracts
- Access to advanced tools and simulators to optimize a CSO design
- An interface which can be integrated into any website or application backed with full legal compliance.
- A network of service providers including law firms, accountants and broker-dealers.
All in all, Fairmint it making a major statement on the once highly talked about Security Token Offerings platforms. Instead, Fairmint’s model proposes a new type of offering which offers benefits to both issuers and investors in an intuitive, blockchain savvy fashion.
To summarize, Fairmint CSO’s legally require issuers to allocate a portion of future revenue into the vehicle, giving investors the confidence the token will not be deserted which providing issuer’s with the same form of freedom we once saw from ICOs.
As we continue to see companies democratize access to their revenue streams and upside, companies like Fairmint are paving the way to a new level of soveirgnty.
Assuming the platform can gain traction from rising startups, it’s likely that the tokens offered in these sales will be some of the most sound that we’ve seen in the crypo industry to date.
Regarding the DeFi like nature of Fairmint, it is worth noting that at this time, CSO’s are only available to accredited investors or those who live outside the United States. While we hope that this will evolve in time in tandem with regulatory oversight, we’re curious to see if DEXs like Uniswap play a role in the exchanging of these assets similar to what we’ve seen with RealT and their tokenized securities.
To keep up on all things Fairmint, we recommend following their Twitter here.
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.