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Dictionary by pitch.dog
Funding instruments & exemptions · Specialist

Token financing

Also called: token sale, ICO

ELI5

Raise money by selling digital tokens.

Used in conversation

“Token financing can trigger securities, consumer and financial regulation.”

Definition

Raising capital through the sale or issuance of digital tokens; legal treatment depends on structure and jurisdiction.

Here “Token financing” means: Raising capital through the sale or issuance of digital tokens; legal treatment depends on structure and jurisdiction.

Pitch context

You will see “Token financing” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.

Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

When the words have to travel

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Sources & evidence · 5

Direct term-level sources and supporting source families.