Investments in equity have always been attractive for anyone with residual income that they would like to invest for capital growth. When you think about equity investments, you’re probably thinking about listed stocks like Apple, Tesla, and Nvidia. These however, are all mature companies that grow in line with the economy and general sales.
While these are attractive opportunities, the mass public is introduced to the scene at a much later stage after larger players have already had their investment cycles in these companies. Why are regular persons not exposed to private equity opportunities like large banks and institutions are?
When you hear private equity, you’re probably picturing large firms like KKR and Blackstone. Private equity can simply be explained as the investments in companies at an early or growth stage that are not publicly listed on the stock exchange yet. These investment opportunities are historically known to be more profitable as these early stage companies use the capital raised to rapidly expand their operations and introduce new products. So why is private equity limited to just institutional investors and fund managers?
Private equity investments have always been treated as an institutional player market with regular persons facing numerous obstacles that obstruct them from early stage investments.
- Private companies have restrictions on the number of shareholders they can have. This prevents anyone with small investment tickets from participating in their private investment rounds.
- Private companies also do not need to publish their prospectus, share management reports, or provide key information required by investors to properly analyze their investments. Institutional investors have the capital to spend on due diligence, market research and fundamental analysis on private stocks by employing large teams to ensure projects are appropriately identified for investments.
Powered by blockchain technology, a new era of investments has begun, allowing masses to invest with as little as 100 USD!
Tokenization is a tool used to fragment large assets and make them more liquid and accessible for large numbers of smaller investors. By tokenizing the private equity holdings of an entity, companies are able to offer investors exposure into the portfolios for much smaller ticket sizes. Numerous players have started tokenizing high-value assets such as real estate to allow new and small investors to gain exposure to highly desirable industries.
The next wave of tokenization targets equities of early stage disruptive companies. Various companies have already started to push tokenized investments to the masses!
With tokenized equity fragmenting private equity investments, a similar revolution is being sparked in the private equity industry. Students, housewives, and low-income households can easily gain exposure to high-return investments through such structured offerings. Innovative new companies and holdings are deploying such tokenized offerings to the mass market. They operate under the common goal to make company growth and the building process more equitable and rewarding for the masses. These new structures are revolutionizing how early stage investments are made across the globe!
A leading example of such an offering would be ShiftDAO, a Marshall Islands registered company that acquires equity of promising tech startups for tokenization. The entity acquires equity of such startups after their own internal analysis, tokenizes them, and makes the fragmented shares available to the mass public to invest in.
These tokenized shares are also more liquid, allowing people to buy and sell their tokenized investments at any point in time through crypto exchanges.
This makes early stage equity investments not only more accessible but also allows investors to enter and exit their investments easier than ever before! Check out ShiftDAO where anyone can invest with as low as 100 USD and their current project campaign - MySeven Project!
Start investing the way institutions do!
MySeven project on ShiftDAO website - https://shiftdao.io/projects/my-seven/
MySeven website - https://myseven.io