Guides · Capital raising mindset

How to Tokenize a Real Asset Offering

Most questions I hear about tokenization are about the technology. The harder questions are about investors, liquidity and legal structure. Those are the places where offerings get stuck.

This guide pulls from what I and the speakers at our events have said on video about blockchain, tokenization and raising capital from family offices. It is education only. Many sponsors talk to securities counsel before issuing anything to investors.

Step by step

Step 1. Test whether you need a token

Start by asking if tokenization solves a real problem for your offering. In the videos, one speaker said there are different investment structures that don't necessarily need tokenization. That is worth taking seriously. A token can add cost and technical work. Write down what a token would do that a standard fund, LP interest or note would not. If the answer is record keeping, say so in one sentence. If you cannot write that sentence, a simpler structure may serve your investors better.

Step 2. Define the asset and the investor

Be specific about the real asset, where it sits and which industry it belongs to. I tell raisers to look at who they are, where they are based, what assets they are investing in and where those assets are located. Then think about which family offices and ultra wealthy investors are close to you, understand your industry or could easily visit the asset. You will not have to teach them the basics, and things move faster. Write this down before you design any token, because the investor drives the structure.

Step 3. Talk through the structure early

Think about what the token would actually represent. Many sponsors talk to securities counsel about this before building anything. Tokens that represent investment interests are often treated as securities, so rules on offerings, investor eligibility and transfers may apply. Check with securities counsel on how they apply to your token. I am not giving legal advice here, and the right answer depends on your asset and your investors.

Step 4. Plan liquidity honestly

Be careful about selling the token on a promise of instant liquidity. One speaker said that when they pitched institutional groups and retail investors, the liquidity promise was not necessarily what people wanted. Allocators were looking at what comes over the long term. You also have to figure out the valuation and who you will trade with. Volume is a big deal. Tell investors plainly how and when they can exit, and what happens if no buyer shows up.

Step 5. Pick the platform and venue

Choose where the token will be issued and tracked. Record keeping is one of the big things blockchain does, as one speaker said. Trading is the harder part. Another speaker pointed out there are not enough eyeballs on exchanges where digital tokens trade, compared with something like Nasdaq. A third said that groups they studied had found it near cost prohibitive at the time. So get real quotes, ask how many buyers use the venue, and decide how much trading volume you actually need and want.

Step 6. Bring in an anchor investor

Look for an anchor investor before you try to fill the round. In my experience, when you bring in an investor for half a million dollars, smaller checks of fifty and a hundred thousand dollars often follow. It is a matter of trust. In many cases, family offices follow other family offices, and ultra wealthy investors follow other ultra wealthy investors. Many investors like to see someone credible go first, with or without a token.

Step 7. Know your numbers and stay patient

Expect to be asked about your numbers. One investor said that if a CEO sends them to the chief financial officer because the CEO is not sure what happened this past quarter, they move on. Know your numbers cold. Then plan for time. A member of ours spent about two years nurturing family office relationships before landing an 8 million dollar equity check and a 40 million dollar equity check. It might take nine months or four years. Play the long game.

From my talks

From my books and event talks

A real asset has one advantage over most pitches, which is that people can see it. You do not need a private jet to show it. You can meet an investor at the asset, or record a video standing in front of it, and that makes the offering more tangible and more real. Do the same on the sourcing side. Build a database of every owner in your niche, get their contact details, and work that list as a system. Whether the offering is a token, an LP interest or a note, investors still want to see the asset and know who stands behind it.

Where people go wrong

• Promising investors easy liquidity when buyers, valuation and trading volume are still unknown.
• Building the token before deciding whether a simpler investment structure would do the job.
• Not talking with securities counsel until after the token is already designed.
• Choosing a trading venue without checking how many real buyers use it.
• Pitching without knowing your own numbers or without an anchor investor.

Facts from this talk

• A Family Office Club member's 8 million dollar and 40 million dollar equity checks equal 48 million dollars, which is 960 checks of 50,000 dollars.
• In one speaker's experience, a half million dollar anchor investor is often followed by fifty and hundred thousand dollar checks.

General education only. Not legal, tax or investment advice.

Talk to a securities attorney to explore options around token legal structure, investor eligibility rules and offering documents. Do not use AI to write your own legal agreements.

Questions about this guide

Related questions

• What is a pre-seed round and who invests in it?A pre-seed round is the earliest outside money a startup raises, often before it has real revenue.
• How do I raise capital from Middle East investors?Start with a warm introduction from someone the investor already trusts.
• How do I value an early-stage company with no revenue?You value it on proof instead of earnings.
• How do I negotiate valuation with an early investor?Start with a valuation you can defend with traction and numbers, then expect the investor to push back.

Use the ready to raise checklist alongside this guide.