Has anybody used NFT's or digishares.io to fundraise?

Question

I'm looking at using an NFT provider to manage investor admin for our 2nd real estate fund. Has anybody done this? Has anyone whitelabeled digishares.io?  What did you think? Cost?

Senate Eskridge · Answer

I have been following this space recently.  I purchased a few shares on Lofty.AI seems to be working well.  Do you have any experience with other platforms like this?

Robert Frazier · Answer

I guess the benefits is in the management piece. There is a central ledger, they prepare tax filings, there is a secondary market for tokens. It is the same rules but you can offer smaller chunks (under $1000). It's a value for us to engage retail investors in development and create asset to this class of investment. We're looking at raising 5-10m for the next fund, this gives us some flexibility on how to structure it (multi-state filings etc).

Taylor L. · Answer

It just seems like a lot of hassle and added complexity in exchange for plenty of potential risk and no real upside. How would this fit into existing securities laws with regards to exempt securities in the US? Why take the extra risk that the SEC will step in and say 'No' when there are already plenty of ways to legally structure private deals? They talk about people being able to openly trade the tokens on exchanges, but don't the tokens represent restricted securities on non reporting companies, which can't be openly traded on an exchange?

Not a securities attorney, and we definitely need some to weigh in. I just don't see the upside from a business standpoint.

Andrew Crebar · Answer

@Chris Seveney is right that you don't want to complicate the deal or lose investors.

The investor experience needs to be that investors don't even know its on blockchain but just get all the benefits of better efficiency, seamless transfers, ability to borrow etc. I think we're a couple years away from this but it is where the market is going.

The number of shares launched with a security token offering (which is different to an NFT) is arbitrary can any number you like (as long as below any shareholder limits on legal entities you're using).

Doug Eric Gueirn · Answer

I have this same idea but haven't really figured out how the math would work for the passive income and ROI to the investors. Most NFT projects are launched with 10,000 units. How does the math work to disperse ROI between 5000-10,000 holders of the NFTs? It is not required to make a project tha has 10,000 NFT units, but you just have to figure out the math on how the ROI is distributed to the investors without breaking any finance laws

Chris Seveney · Answer

@Robert Frazier

We have not as our targeted investor is not one who is a big believer of NFT. We target over 36 year old investors with higher net worths and that is not the type of people who are familiar with NFT

When raising $ you need to make sure it is very clear and simple - adding complexity to something that someone will not understand will lose investors

Shane Crockett · Answer

Hey boss, you every track down users of DigiShares or anyone who has used tokenization platforms to raise money for RE?  I’d love to learn more.

Adam Lacey · Answer

Hey @Robert Frazier,  I'm very interested on this topic as well but admittedly know very little about it. Might want to see what these guys are doing though (https://libertyfund.io/). They have some basic info on their website and on podcasts. I know there was a conference in Austin earlier this years related to RE and blockchain tech.

Has anybody used NFT's or digishares.io to fundraise?

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