How Dacxi Chain Tokenized Crowdfunding Could Solve The Global Early Stage Crisis
Global demand for early stage funding, and the urgent search by investors for ‘the next big thing’, has created the biggest explosion of wealth creation in history.
But only for the elite few.
The truth is that the rich are getting richer, and the vast majority of people who would benefit most from being able to participate in the early stage funding market — ordinary people with great ideas, and those with the funds to bring them to market — just don’t get a look in.
Dacxi Chain tokenized global crowdfunding aims to change all that.
The idea for the Dacxi Chain began with a very simple premise; fairness.
Today, far too many people are being left out of the early stage funding process — on both sides of the equation. Innovators and entrepreneurs on one hand, and investors on the other. They both find it much too difficult to connect, despite a strong desire to do so. That’s simply unfair.
What’s more, the early stages of product development and marketing are when a majority of investments experience hyper-growth in value. These are the opportunities everyone is looking for, but very few are getting the chance to grasp. This is stifling economic growth and wealth creation for millions of people all over the world.
In purely economic terms, the present system of innovation funding is inefficient. And for the free-market economists among us, that’s anathema. There are many artificial barriers in place that prevent the natural intersection of sellers (entrepreneurs) and buyers (early stage investors).
But by using tokenization and other tools and technology, the Dacxi Chain aims to allow innovators to easily and efficiently connect with a massive new pool of early stage investors. No matter who they are, or where in the world they’re based.
Let’s take a look at the entrepreneur side of the early stage funding equation.
Solving the funding problem for entrepreneurs
Entrepreneurs are the future. There’s no doubt they will change the world. If they’re properly funded and free to innovate, they will provide brilliant solutions to almost any problem you can imagine. Improving lives, delivering equality, creating wealth and distributing it fairly.
But there’s a problem with that vision. The innovation funding ecosystem we have now is biased and broken. Dacxi estimates that at least one million worthwhile projects a year are being lost to the world due to a lack of adequate funding.
Despite the endless publicity about the businesses who do receive funding, it quickly becomes clear that those being promoted are just a tiny fraction of all the deserving companies out there. For every funded company we hear about, thousands are going begging. There are three key issues that today’s entrepreneurs face:
- Not getting any funding at all
- Getting funding, but not enough and not quickly enough
- Losing control of their company due to the conditions demanded by VCs and angels
The Early Stage funding crisis
A major problem with the current funding system is getting from Seed to Series A stage — also known as Early Stage. At this stage, success cannot be guaranteed with any confidence, and companies might need up to $10 million to take it to the next level. Investing at this point is high risk, but it’s also where the opportunity for hyper-growth in value lies.
While there’s a lot of buzz around Early Stage investment, there are actually only a few places in the world with effective ecosystems; Silicon Valley, New York City, Shenzhen and Shanghai. The rest of the USA struggles, the rest of China struggles. Even those established ecosystems are beginning to struggle, as many entrepreneurs trying to raise Early Stage capital in Silicon Valley will tell you.
Worse still, entrepreneurs in proven innovation centres like Oxford, London, Singapore, Sydney, and Stockholm laugh at the notion that there’s plenty of Early Stage funding available. There’s funding — but only for those who are already successful.
Now imagine what it’s like for entrepreneurs outside of these centres? Or in any one of thousands of other cities and towns in the world? For 99% of the world, getting the right amount of Early Stage funding is a practical impossibility. And that’s a massive failure of the current system. Because there are just as many great ideas and entrepreneurs in Scotland, Chile, Adelaide, Vietnam, Delhi, Estonia, Uganda, Turkey as there are in New York or Shanghai. What if a great team in a developing nation could get the same level of funding as someone in Silicon Valley? Innovation all around the world would explode.
Early Stage funding option
Today’s Early Stage companies requiring investment are limited to personal resources, friends and family, angel networks, angel investors, venture capitalists and government.
Due to their resources and investment savvy, Early Stage funding is dominated by wealthy angels and venture capitalists. Their funding powers innovation, yet given the potential size of the market, their powers are limited — as they only tend to invest in later stage opportunities with higher success rates.
Governments invest in Early Stage ventures because they know how necessary innovation funding is. However, the presence of government investment is the clearest possible indication of how dysfunctional the current Early Stage funding model is.
Now let’s consider the investor side of the equation; the early stage investor.
Read the full article: https://www.benzinga.com/markets/cryptocurrency/22/03/26085739/how-dacxi-chain-tokenized-crowdfunding-could-solve-the-global-early-stage-crisis
