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Capital Funds

Capital funding is the monetary support provided to a company in the form of debt or equity for a seamless operation. Going through the companyโ€™s balance sheet for its liabilities and shareholder equity can present you with a clear overview of the capital structure for the given company.

But, the introduction of tokens and DAOs has allowed companies to work outside the traditional capital funds. Any company can issue tokens and operate based on the collected revenue for a longer duration of time.

The only downside is, tokens are not recognized as securities by the global regulators. So they lack any rights and protection that come under the securities act.

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