Capital funding is the money provided in the form of debt or equity to operate a company. Traditionally, the capital structure of a company could be determined by reviewing its liabilities and shareholder equity listed on the company’s balance sheet. However, with the introduction of tokens and decentralized autonomous organizations (DAOs), a company or organization may not need traditional capital funds but can instead issue tokens to operate in the long run. It is important to note that global regulators have clearly stated that tokens are not securities which means they lack the rights and protection under the securities act.
A company can raise capital funds through stock issuance, debt issuance or token issuance.
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