DigiShares
Market-leading provider of solutions for real-world asset tokenization
Overview
Raised: $97,682
2022
Financial & Insurance Products & Services
Fintech
B2B
Low
Low
Summary Profit and Loss Statement
FY 2022 | FY 2021 | |
---|---|---|
Revenue |
$808,691 |
$675,025 |
COGS |
$736,782 |
$332,655 |
Tax |
$123,405 |
$2,740 |
| ||
| ||
Net Income |
$-427,556 |
$39,943 |
Summary Balance Sheet
FY 2022 | FY 2021 | |
---|---|---|
Cash |
$794,768 |
$443,972 |
Accounts Receivable |
$65,059 |
$78,825 |
Total Assets |
$1,421,834 |
$907,419 |
Short-Term Debt |
$97,259 |
$57,130 |
Long-Term Debt |
$401,808 |
$372,843 |
Total Liabilities |
$499,067 |
$429,973 |
Raise History
Offering Name | Close Date | Platform | Valuation | Total Raised | Security Type | Status | Reg Type |
---|---|---|---|---|---|---|---|
DigiShares | 12/26/2023 | Republic | $50,000,000 | $97,682 | SAFE | Funded | RegCF |
No prior online funding rounds.
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Synopsis
Tokenization is a method that converts rights to an asset into a digital token on a blockchain. It's a relatively new concept, gaining traction in the financial industry. Tokenization can democratize access to capital and, for the first time, offer a way for the general public to invest in previously illiquid and inaccessible asset classes.
DigiShares is a company that leverages this technology to provide solutions for real-world asset tokenization. It focuses on real estate, an industry that's notoriously illiquid and difficult for the average investor to break into. DigiShares is launching the first regulated blockchain-based exchange in the U.S. for real estate, with global coverage in over 40 countries. This is a significant development, as it could open up opportunities for retail investors to participate in real estate investments that were previously only available to institutional investors or high-net-worth individuals.
With 150 clients, including real estate developers and investment banks, DigiShares has a solid base to grow from. The company has also secured more than 60 partnerships, further expanding its reach and potential for growth. The funds raised in its current crowdfunding campaign will be used for technology and product development, sales and marketing, infrastructure, legal expenses, and general working capital, positioning it for further expansion in the tokenization industry.
Price
DigiShares is raising funds on Republic at a valuation of $50 million. While the company operates in a promising space and has secured numerous partnerships, the price is a cause for concern.
DigiShares generated $808,691 in revenue in the most recent fiscal year, resulting in a revenue multiple of approximately 61.83. This multiple is significantly higher than in the financial products and services industry. Furthermore, the company's low margin level indicates potential profit generation challenges.
Investors should consider the valuation and potential returns when evaluating an investment in DigiShares. While the company operates in a high-growth sector and has demonstrated revenue growth, the current valuation may not be justified based on its financial performance. It is important to assess the long-term potential of DigiShares and the market demand for its services before making an investment decision.
Market
The tokenization market is a relatively new but rapidly growing sector, driven by blockchain technology's ability to provide increased transparency, security, and ease of transactions. Tokenization refers to the process of converting rights to real-world assets into digital tokens on a blockchain. The US tokenization market was valued at $1 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 19.5% from 2021 to 2028.
Overall, the market potential for DigiShares is high, given the growth of the broader tokenization market and the unique benefits of real estate tokenization. The company's success will likely depend on how effectively it can navigate the regulatory landscape, educate potential clients about the benefits of real estate tokenization, and continue to build partnerships and expand its client base.
Team
DigiShares was founded by CEO Claus Skaaning. Skaaning has relevant industry experience and graduated from a top 100 university. He has demonstrated high-level managerial skills and is dedicated to the success of DigiShares.
The DigiShares team consists of nine members, including Skaaning. While specific details about the team members are not provided, it can be assumed that they possess the necessary skills and expertise to support the company's mission of providing solutions for real-world asset tokenization using blockchain technology.
Differentiation
DigiShares operates in a moderately competitive market with established competitors. The company differentiates itself by providing solutions for real-world asset tokenization using blockchain technology. DigiShares is launching the first regulated blockchain-based exchange in the US for real estate, offering global coverage in over 40 countries. This unique proposition positions DigiShares as a leader in emerging asset tokenization.
With a roster of 150 clients, including real estate developers and investment banks, and over 60 partnerships secured, DigiShares has established a strong network within the industry. These partnerships further enhance the company's credibility and enable it to offer comprehensive solutions to its clients.
Although DigiShares has no patents, its early market entry and established client base give it a competitive advantage. However, the differentiation level in terms of quality and price is considered low, indicating that DigiShares may face challenges in standing out from competitors solely based on these factors.
Performance
DigiShares has made significant progress in real-world asset tokenization using blockchain technology. The company is launching the first regulated blockchain-based exchange in the US for real estate, with global coverage in over 40 countries. This innovative solution has attracted a strong client base, with 150 clients, including real estate developers and investment banks. DigiShares has also formed more than 60 partnerships, further solidifying its position in the market.
The company's annual revenue reached $808,691 in the most recent fiscal year, representing a growth rate of 19.80% compared to the previous year.
DigiShares has demonstrated its ability to secure funding, having raised $230,000 in prior rounds. The company also maintains a healthy cash position, with cash and cash equivalents of $794,768 at the end of the most recent fiscal year. This financial stability provides a strong foundation for DigiShares to continue its growth trajectory.
Risk
Investing in DigiShares carries some risks that prospective investors should consider. Firstly, the market acceptance of asset tokenization using blockchain technology is still relatively low. While DigiShares has secured partnerships and clients in the real estate and investment banking sectors, the overall market adoption of this technology remains uncertain. DigiShares operates in a moderately competitive landscape, potentially impacting its market share and growth potential.
Legal issues are another risk factor for DigiShares. The nature of the company's business model, involving the tokenization of real-world assets, may subject it to high regulatory scrutiny and potential legal challenges. While there are no ongoing lawsuits, the likelihood of facing legal issues is deemed high.
Financially, DigiShares has negative net income and a relatively low annual revenue. This indicates that the company may not be profitable in the short term. Furthermore, DigiShares is currently overvalued, which may impact new investors' potential return on investment.
Bullish Outlook
DigiShares has established itself as a market-leading provider of solutions for real-world asset tokenization using blockchain technology. The company's platform offers a white-label solution for real-world asset developers, funds, marketplaces, and consultants, enabling trading, automating compliance and governance processes, and providing transparency for investments in real estate and other tangible assets. With its innovative approach, DigiShares is poised to disrupt the traditional real estate industry by introducing the first regulated blockchain-based exchange in the US for real estate with global coverage in over 40 countries.
DigiShares has already secured a strong client base of 150 clients, including real estate developers and investment banks, highlighting the demand for its services in the market. The company has also forged over 60 partnerships, further solidifying its position as a key player in the industry. These partnerships are crucial for expanding DigiShares' reach and driving growth.
The market potential for asset tokenization is high, as it offers increased liquidity, fractional ownership, and enhanced transparency. DigiShares is well-positioned to capitalize on this opportunity and capture a significant share of the US tokenization market. The company's annual revenue of $808,691 and annual revenue growth of 19.80% demonstrate its ability to generate sustainable income and achieve consistent growth.
Bearish Outlook
DigiShares, despite its impressive partnerships and client base, faces challenges that raise concerns about its potential for future success. The company operates in a moderately competitive market, and its offering of real-world asset tokenization using blockchain is not unique. While DigiShares has secured over 60 partnerships and has 150 clients, it is unclear how these partnerships and clients will translate into sustainable revenue growth. Furthermore, the company's valuation of $50 million seems overinflated, considering its current financial performance.
DigiShares recorded an annual revenue of $808,691, with a growth rate of 19.8%. While this growth rate is respectable, it is important to note that the company incurred a net loss of $427,556, raising questions about its ability to generate consistent profitability. Additionally, DigiShares operates with a low margin level, suggesting that its profitability may be constrained in the long run.
In a competitive market with high barriers to entry, having patented technology or intellectual property can provide a significant advantage. DigiShares may face challenges protecting its technology and fending off competitors without patents.
Furthermore, the company's burn rate of $35,629.67 per month raises concerns about its ability to manage its cash flow effectively. DigiShares may need to rely on fundraising activities to sustain its operations and continue its growth trajectory.
While DigiShares has made progress in establishing partnerships and securing clients, there are significant risks and uncertainties surrounding its ability to generate sustainable revenue, achieve profitability, and justify its current valuation.
Executive Summary
DigiShares is a market-leading provider of solutions for real-world asset tokenization. The company leverages blockchain technology to offer a white-label solution for asset developers, funds, marketplaces, and consultants. The platform is designed to lower barriers, enable trading, automate compliance and governance processes, and provide transparency for investments in real estate and other real-world assets. DigiShares is launching the first regulated blockchain-based exchange in the U.S. for real estate, with global coverage in over 40 countries. The company has secured 150 clients, including real estate developers and investment banks, and has formed over 60 partnerships.
Despite the promising business model and market potential, DigiShares is not yet profitable, with a net income of -$427,556 in the most recent fiscal year. The company's monthly burn rate is $35,629.67, highlighting the need for financial stability and growth. The company's valuation appears to be overinflated at $50 million, given its current financial performance and stage of development.
DigiShares is raising funds on Republic, with a minimum target of $50,000 and a maximum target of $1.24 million. The proceeds from the campaign will be used for technology and product development, sales and marketing, infrastructure, legal expenses, and general working capital. This fundraising effort could provide the necessary capital for DigiShares to continue its growth and development efforts, potentially leading to profitability in the future.
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