Capital Raise

Definition ∞ A capital raise is the process by which companies or projects obtain funding. This can be achieved through various means, including issuing equity, debt, or through the sale of digital tokens in the case of blockchain projects. The primary objective is to secure the financial resources necessary for expansion, development, or operational expenses. Understanding capital raises is fundamental to assessing the growth potential and financial health of entities within the digital asset landscape.
Context ∞ The discussion around capital raises in the crypto space frequently involves Initial Coin Offerings (ICOs), Security Token Offerings (STOs), and venture capital investments in blockchain startups. Regulatory scrutiny and market conditions significantly influence the methods and success rates of these funding rounds. News coverage often details significant funding achievements by prominent crypto projects, providing insights into investor appetite and the evolving funding mechanisms within the decentralized finance sector.