Wang Sharejun believes that international capital favors established companies and large enterprises because of their low investment risks and considerable returns. But often the most needed financing is those emerging enterprises, because these enterprises have unique management model, strong operation team, innovative products and technology… The only thing missing is the funds that can provide rapid expansion of enterprises. Opportunities are fleeting. There are not a few valuable enterprises that have died because of lack of funds. This has to be said to be a great regret. The emergence of STO has broken the financing dilemma of start-ups and small and medium-sized enterprises. STO relies on block chain technology to break the restrictions of geographical boundaries, so that large and small companies and enterprises can display their own advantages through the Internet, attract the eyes of all investors around the world, and obtain support from global funds through block chain technology. Moreover, STOs usually finance at very high valuations.
Securities Circular is issued and circulated under supervision. It has the legitimacy that “some convenient financing method” does not possess. It has more formal and diversified quality projects for investors to choose, and it does not need to worry about the project side running away. Successful STO enterprises can get more trust and favor of institutional investment and get more market by virtue of legitimacy. Under supervision, both investors and enterprises have adequate protection. For example, TZERO, the world’s first SEC-regulated securities exchange, is in line with U.S. securities law to conduct securities sales on TZERO, which attracts a large number of institutions and funds.