Each successful raise is backed by a dedicated legal entity formed specifically for your company, in the Cayman Islands. That entity — not each individual investor — becomes the actual shareholder in your company, holding the equity stake being raised.
A separate legal instrument called a Deed Poll links every investor's token to that entity. It's what turns token holders' economic interest into an enforceable legal claim on future proceeds, without requiring you or Spring to sign a separate contract with every investor individually.
Practically, this means:
Your cap table shows one new shareholder — the entity — no matter how many investors participate, and that stays true as the raise grows.
Investors' claims to their share of any future proceeds (a sale, dividend, or other liquidity event) are documented and enforceable from day one, even though the token itself isn't a security.
If your company already exists, its relevant shares — or an equivalent legal arrangement where a direct share transfer isn't practical — move into this entity rather than new shares being issued.
Need more help?
We’ve aimed to cover everything here, but if your question isn’t answered — or you’ve spotted something that needs correcting — contact us at team@usespring.io
A member of the team will respond.