The Problem Crowdfunding Platforms Face
Crowdfunding has democratised capital raising, but the model has fundamental limitations that tokenisation solves.
No liquidity
Investors are locked in until an exit event (IPO, acquisition, or buyback) that may never come. The average hold period for equity crowdfunding investments exceeds 7 years.
Paper-based cap tables
Legacy systems lead to reconciliation errors and missing records. Most use spreadsheets for complex nominee structures.
Geographic limitations
Each jurisdiction requires separate legal structuring, limiting most platforms to 1–3 countries.
Manual distributions
Dividends require manual calculation, bank transfers, and individual processing.
Investor fatigue
Without returns, investors lose engagement after the initial funding closes.
How Tokenisation Solves Each Problem
Liquidity Through Secondary Trading
Tokenised securities can be traded between whitelisted investors on FRACTIONED's built-in secondary market. Investors no longer need to wait for an exit. They can sell their position to another qualified buyer whenever they want.
“This single feature transforms crowdfunding from a ‘lock and hope’ model into a liquid investment.”
On-Chain Cap Tables
Every token transfer is recorded on-chain. The cap table is always accurate, always up to date, and always auditable. No spreadsheets. No reconciliation. No disputes about who owns what.
CAP_TABLE_V2.0
100% On-Chain Accuracy
Global Distribution
KYC/KYB automation handles multi-jurisdiction compliance. An issuer in London can accept investors from Germany or Singapore from a single platform.
Automated Distributions
Dividends and revenue distributions are handled by smart contracts. Set the amount, confirm, and every token holder receives their share automatically.
Continuous Engagement
Investors stay active with secondary trading and regular returns, keeping them more likely to invest in new offerings.
Integration Models
OPTION 1
Whitelabel
Your Brand, Full Platform. Best for platforms that want an end-to-end tokenised experience without building infrastructure.
What Changes for Your Investors
They can invest in fractional amounts — even €1 minimums are possible
They can trade their positions on the secondary market after holding periods
Dividends and returns arrive automatically — no manual claims
What Changes for Your Platform
Cap table management becomes automated and error-free
New revenue stream: earn fees on secondary trades
ERC-3643 enforces compliance at the protocol level
Revenue Model for Platforms
Primary raise fees
Continue charging issuers your standard success fee.
Secondary trading fees
Earn 0.5–2% on every secondary market transaction.
Distribution fees
Optional fee on every automated smart contract distribution.
Premium tier upsell
Offer tokenised offerings as a high-value premium service.
Platform subscription
Charge issuers monthly fees for cap table and distribution tools.