> For the complete documentation index, see [llms.txt](https://docs.theangel.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.theangel.app/how-it-works-founders/tokenisation-of-your-equity.md).

# Tokenisation of Your Equity

### Phase 2 — Tokenisation of Your Equity

This is the core innovation behind TheAngel.

Instead of issuing a SAFE, convertible note, or priced equity directly to investors, TheAngel structures a compliant tokenised investment vehicle.

#### Tokenisation Workflow (Simple View)

Your Equity → SPV/Securitisation Compartment → Digital Tokens → Investors

Behind the scenes, TheAngel leverages Filedgr’s Luxembourg securitisation fund model, giving founders institutional-grade infrastructure normally reserved for major financial institutions.

#### Step-by-Step Tokenisation Process

**1. SPV/Securitisation Compartment is Created**

* Fully bankruptcy-remote
* Legally segregated from other assets
* Holds your startup equity
* Managed by an EU-regulated management entity

This protects both founders and investors.

**2. You Transfer Equity to the Securitisation Fund Compartment**

Typically a defined percentage of shares representing the round size (e.g., 10% of company = $700k raise).

**3. Smart Contract Engine Mints Tokens**

Each token represents fractional ownership of the equity held by the SPV.

**4. Tokens Receive an ISIN**

This is a major advantage:

* Globally recognised
* Transferable
* Institutional-grade identification

**5. Token Economics Defined**

TheAngel helps structure:

* Total token supply
* Token price (based on valuation)
* Investor allocation
* Reserve pools (optional)

#### Founder Benefits of Tokenisation

* Simplified investor onboarding
* No individual shareholder entries
* No managing dozens of angel investors
* Equity remains cleanly structured
* Quarterly liquidity attracts more investors
* Global compliance handled centrally

In short:

You raise once → TheAngel handles everything else.