Startup Funding: Blockchain (514 Words)

The media floods us with buzzwords every day. If you are like me, all these buzzwords will
make you curious. And your time is limited, just like mine.

Introducing to you, the Blockchain Technology and a Business Model for Start-ups that can
guarantee their steady growth and survival in this highly competitive world. On diving into the
field of Blockchain, the technology behind cryptocurrency, I found it to be extremely fascinating
and have done extensive research on the topic because of its limitless potential.

Being an aspiring entrepreneur, I started networking with people who were launching or already
had founded start-ups to get an idea about their challenges.

This is the next step in the evolution of trade and finance which will completely change our
perspective of the world. Blockchain gives us the age of digital ownership by allowing us to own
digital goods, assets, and data.

The most beguiling future of this technology is the generation of funds for start-ups by
democratizing access to investment capital. This is based on real-life cases and an approach to
solving these problems.

The model is suited for highly competitive industries which are everywhere because every
business is online now and products or services can be delivered to any part of the world. This
will provide global access of capital and network to the start-ups.

It is based on the essence of entrepreneurship. If our goal is to inspire innovation and empower
more people to build companies of all sizes, we need a new way to fund those ideas. We need a
more flexible system that does not squeeze entrepreneurs and investors into one rigid financial
outcome.

Start-ups usually compete to get money from the investors, but recent data shows ICOs(Initial
Coin Offerings) are generating more money than investors. So instead of depending on
Venturing Capitalists what if different companies come together to do an ICO that combines the
value of all participant companies and raises money as a group.

The profits for everyone will be multiplied many times than what they would get individually.
By issuing a digital currency tied to the value and services that the company provides. The
currency acts like shares in a company, like on the public stock market, increasing in value as it's
traded online. Most important, ICOs expand the investor pool, from a few hundred venture
capital firms to millions of everyday people, always excited to invest. This market represents
more money and safety. It represents more investors, a greater likelihood to get funded, and a
brighter future for all.
In Layman’s terms, it is time to get rid of the middlemen who only gain profits and make the
whole process of funding complex and restricted to only large corporations.

This enables the investors to withdraw their money safely with better returns and reinvest
potentially funding new faster.

It will change people’s perspective about starting a business or founding and investing in start-
ups, having a long-term impact on the economy. This is way more exciting than just trying to
find and investing in the next billion-dollar start-up.