Dacxi Team

For investors willing to take on risk for potential growth, it’s clear that Early Stage investing is an alluring option. What’s not so clear is how to actually become an Early Stage investor in the first place.

Here are the three biggest obstacles currently holding people back from participating in Early Stage investing – and how the Dacxi Chain will break them down.

• 1. Access to investing opportunities

The pool of viable new ventures is small. That means the best are snapped up by the established investor community – in other words, venture capital companies or well-connected wealthy individuals. Everyday investors never get a look in. 

Sometimes new venture development companies or incubators might make shareholdings available to a wider audience. But there is usually a catch. For one thing, they can usually only be offered to ‘Accredited Investors.’ Accredited Investors are a vaguely defined group of wealthy individuals who the government has deemed capable of making their own high-capital investment choices. This sends a clear message to everyday people; that those with just a few thousand to invest are too simple or ignorant to recognize a good opportunity when they see one. 

Dacxi believes this couldn’t be further from the truth. That’s why they have pioneered the Dacxi Chain – the world’s first global tokenized equity crowdfunding system. Using the process of tokenization, the Dacxi Chain will create digital versions of company shares. These digital shares will then be able to be quickly and easily bought and sold from anywhere around the world. This will provide everyday investors access to a level investment playing field. Where the same deals are on offer to everyone – whoever they are, and wherever they’re based.  

• 2. Deal assessment and due diligence

Crowdfunding platforms like Kickstarter and Indegogo offer everyday investors a way to put their money into new ventures in their early stages. However, there’s usually no opportunity to do meaningful due diligence on the business, the team, or the viability of their business model.

This means the investment can only be based on hype, blind trust, gut instinct, or vague promises. None of which are the path to a successful investment. 

That’s why today’s crowdfunding model hasn’t fulfilled its true potential. It’s not because there’s a lack of potential investors, or not enough good ideas. Savvy investors simply require better information – including fundamental business data like shareholding structure, management track record, market validation testing, and cash-flow projections.

Unlike current crowdfunding platforms, the Dacxi Chain has a built-in due diligence system that will allow would-be investors to make informed decisions. So they can take control of their financial future with full confidence. 

• 3. International barriers

The new venture investment market is currently fragmented along national or regional boundaries and borders. That creates severe limitations on the opportunities available to investors – and also on the pool of funds accessible to entrepreneurs. 

The Dacxi Chain solves this barrier, too, by providing a truly global system. Tokenization unlocks the ability for companies to create digital versions of their company shares, which can then be easily bought and sold by a massive global audience. Investors can choose to work with their local Dacxi Chain team, or to tap into a world-wide pool of innovative businesses seeking the funding they need to thrive. It’s a genuinely global network – where true innovation is blind to race, religion, and geography. 

The Dacxi Chain solves the current crowdfunding system’s numerous issues. 

Dacxi’s pioneering system doesn’t just break down these three barriers. For example, by making digital shares that can be easily bought and sold to a massive pool of global investors, it vastly increases liquidity in crowdfunding. And all this is just the beginning. By enabling an international Early Stage funding mechanism, the Dacxi Chain will revolutionize new venture funding, and transform entrepreneurship worldwide.

Find out more or register your interest as an entrepreneur or investor.

Wikipedia defines equity crowdfunding as: A mechanism that enables broad groups of investors to fund startup companies and small businesses in return for equity. Investors give money to a business and receive ownership of a small piece of that business. If the business succeeds, then its value goes up, as well as the value of a share in that business — the converse is also true. 

According to IBM, the crowdfunding market could be worth $1 trillion a year by 2027. But for all the buzz and publicity, crowdfunding has never reached anywhere near its full potential. Why? Because it lacks an efficient global system that connects entrepreneurs and investors, and enables funds to flow between the two obstacle-free. 

The traditional crowdfunding model has five fatal flaws: 

1. No Buzz. As it stands today, equity crowdfunding is boring. It’s not exciting enough to attract the one thing it relies on; mass speculation from the crowd. As we’ve seen in crypto, when the FOMO buzz hits, the public races to invest. If crowdfunding can achieve crypto’s level of buzz, investors will come.
2. Deal Confidence. Crowdfunding is ‘funder-centric’, not ‘investor-centric’. Due diligence by the investor is effectively impossible. Unless the investor already has an in-depth understanding of the industry, the investment is purely based on blind trust. 
3. Weak deal flow. There simply aren’t enough deals to attract a big enough crowd. And without no crowd, there’s no buzz. 
4. Limited Crowd Reach. Lack of buzz isn’t the only barrier to a bigger crowd. Crowds are currently restricted to their own local region or country, which also limits their size. 
5. Poor Liquidity. It’s currently too hard for investors to sell their shares when they want to. 

How does the Dacxi Chain solve crowdfunding’s major flaws?

The Dacxi Chain uses the process of tokenization to unlock crowdfunding’sT enormous potential. It comes with five unique advantages: 

1. It allows opportunities to be easily offered worldwide, opening up a massive audience of global investors.
2. It connects entrepreneurs with a specific audience of investors who have indicated an understanding of their industry and its potential 
3. It lets anyone invest from anywhere in the world, in any amount they choose (even small sums) 
4. It provides simple management of the investment 
5. It offers asset liquidity, because tokens can be sold on global exchanges quickly, easily and cost-effectively.

With these unique advantages and the scaling ability of blockchain, the Dacxi Chain tokenized crowdfunding system will empower innovators to raise more money, more quickly, from more investors – anywhere in the world. 

How tokenization works. 

The Dacxi Chain works by tokenizing company shares on a blockchain. This means investors own tokens that represent ownership of company shares. Every transaction is recorded on a blockchain database, so no other means are required to verify ownership. Financial assets (like shares) are ideal candidates for tokenization, because it makes them significantly easier to buy, store and sell independently and globally. 

But the Dacxi Chain offers so much more than just blockchain tokenization. It also covers regulated deal origination, due diligence, promotion, investment, custody and liquidity. It’s a complete global crowdfunding network. And that’s why it will unleash crowdfunding’s full potential. Allowing entrepreneurs to access invaluable funding. Allowing investors to take control of their financial future. And allowing innovation to truly change the world.

Find out more or register your interest as an entrepreneur or investor.

Created by global fintech company, Dacxi, the Dacxi Chain is the world’s first global tokenized crowdfunding system. A complex global network, the Dacxi Chain is designed to efficiently and effectively connect entrepreneurs with investors. So they can access the funding they need to see their business thrive. 

So, how does the Dacxi Chain work? Let’s take a look, with this hypothetical example of how a deal would progress through the Dacxi Chain.

Step 1: The deal

Let’s say a company in Melbourne, Australia, has invented a revolutionary dental product. It’s not just an idea – it’s already on the local market, being sold to dentists in the area. But the invention’s potential reaches far beyond Melbourne alone. The company knows it could be a global success. But they also know that expanding production, growing their marketing, and exporting internationally takes money. So they do their sums and work out they need to raise $2 million to take their business to the next level. 

Through their local Dacxi Chain licensee, they connect with the Dacxi Chain’s Opportunity Division. Due diligence is done and an equity token offer agreement is made. Dacxi secures the shares, its staked blockchain writer node mints the tokens. While the process is underway, the offer’s strategy and promotional material are created. 

Step 2: Capital Raising 

After Dacxi’s unique trust system has cleared the deal, it’s offered to the Dacxi Chain investor base in both Australian Dollars and Dacxi Coins. The offer will be made available to investors in both Australia and globally, who’ve indicated interest in ‘dental’ opportunities. 

One of these potential investors is a dentist in Mexico. Through her local Dacxi Chain office, she registered her interest in dental and medical investment opportunities. As a health professional herself she understands the technology, and is well-placed to see the potential within this category. 

Through the Dacxi Mexico platform, she swaps pesos for Dacxi Coin. Her investment is immediately sent to Australia on the Dacxi blockchain. Her dental investment tokens appear in her Dacxi Mexico portfolio. 

This process is repeated with numerous investors throughout the Dacxi Chain, until the offer is fully funded. At that point the dental company in Melbourne can convert their Dacxi Coins into $AUD and begin expanding their company. Fully confident that they have the right amount of funding to successfully meet their business objectives. 

Step 3: Post Listing

Next, the dental technology token is listed on the global Dacxi Chain Venture Exchange. The Mexican investor is provided with regular updates on the dental company’s performance. Like a traditional share investment, the company’s performance will influence its token’s price. Should she wish to exit her investment, she can offer her tokens for sale on the Dacxi Chain Venture Exchange. 

When her tokens sell, the transaction takes place using Dacxi Coins. Her funds are immediately transferred to her Dacxi Chain Mexico account, ready to be reinvested in another business opportunity, or exchanged to Pesos for cashing out. 

This process might seem simple – and that’s because it is. 

The Dacxi Chain is designed to be the world’s most efficient crowdfunding system. It’s made to streamline and simplify the crowdfunding process, and ensure that more world-changing ideas can come to fruition. Through the power of blockchain and tokenization, the Dacxi Chain will match the right entrepreneurs with the right investors. So they can get the right funding they need to succeed.  

Find out more or register your interest as an entrepreneur or investor.