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
- Initial coin offeringThe search label “ICO” can route to both entries.
Sources & evidence · 5
Direct term-level sources and supporting source families.
- Y Combinator — Safe financing documentsDirect source · practitioner · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsDirect source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16