Crowdfunding is a brilliant concept, with the potential to bring billions of dollars in funding to new ventures all over the world. But unfortunately, up to now, it hasn’t worked. The system is broken, and countless great new businesses are being lost for want of funding. It’s an extraordinary missed opportunity for entrepreneurs and investors alike.
What the entrepreneurial landscape needs is a streamlined global system. A system that will connect entrepreneurs and investors directly – without the friction and obstacles created by large venture capital firms, angel investors, and accredited investor rules. That system is currently being pioneered by global fintech company, Dacxi. And it’s called the Dacxi Chain.
Crowdfunding today and its fatal flaws
In 2007 in Australia, the first crowdfunding platform appeared; the Australian Small Scale Offerings Board (ASSOB). Since then, the idea of crowdfunding has expanded to Europe, North America and Asia. Product crowdfunding on platforms such as Kickstarter and Indegogo are now well-known in many countries. Yet they still don’t deliver anywhere near the level of funding required to allow innovation to thrive.
The current crowdfunding model has several critical issues, including:
- It’s on a very small scale, with deals tending to be locally based
- There’s rarely the opportunity to gain an equity shareholding in a new venture
- Instead investors are often reeled in with gimmicks like a price discount or being the first to be able to buy a new product
- The attraction of investing is more about discovering something new and getting bragging rights – rather than a genuine investment transaction
- Doing meaningful due diligence is often impossible, which means investors have to place blind trust in the team behind the venture
All these flaws are a major turn-off for the serious investor, who has little interest in this type of deal.
How to make sure crowdfunding realizes its enormous potential
To truly hit its stride and achieve its goals, crowdfunding requires a global system that effortlessly connects entrepreneurs with investors. What’s more, it must give investors the opportunity to make equity investments with confidence – trusting that the business is both viable and has potential for significant growth.
The Dacxi Chain is just such a system. The Dacxi Chain uses the unique power of blockchain tokenization to solve the problems of the current crowdfunding system. By creating digital versions of company shares – which can be easily bought and sold online anywhere and any time – the Dacxi Chain will create a worldwide crowdfunding network. Connecting entrepreneurs and investors from around the world, under one simple and seamless platform.
Entrepreneurs will finally get the funding they need. And in return investors will get the opportunity to confidently gain equity in new ventures, and take control of their financial futures in the process.
The Dacxi Chain will allow innovation to reach heights we’ve never seen before. Creating an unparalleled wealth building opportunity for both sides of the new venture equation.
Find out more or register your interest as an entrepreneur or investor.