📊 Private equity is an alternative investment class and consists of capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies.
⛔️ The problem with private equity is that big investors have a high bargaining power due to their size. It means that they can demand better terms, such as a higher equity stake, a place on the board of directors, and other conditions. These conditions often may be highly unfavourable for the business.
🦾 With tokenization, the choice of investors is flexible, which allows to set your own terms and generally get higher bargaining power. Since tokenization enables trading even without an IPO, investors get higher flexibility for a cash-out, which means they now do not have to make the company chase ridiculous growth targets.
🔎 Check the Stobox Infographic to learn more differences between these two processes to choose the best one for your company.
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