Crowdfunding is fundamentally a tech-driven concept. It was born online and has remained one of the primary means for many types of businesses (although namely those in the tech industry) to acquire the funding they need in order to get off the ground and start shipping their products.
With crowdfunding being so centered around technology and innovation, it should come as no surprise that cryptocurrency has found its way into the system. The explosion of Ethereum, Bitcoin and the countless list of other cryptos has inspired a new way for investors to fund their favorite companies.
If you see this new form of payment as an ideal way to obtain the money you need for your startup, you’ll be glad to know that it’s easier than ever to make it happen. Listed below are some tools and resources that will help you get a better idea of how it all works.
Ambisafe works with Ethereum and facilitates the raising of money for startups through cryptocurrency. Anyone can issue an asset on the blockchain and add it to a worldwide database of crypto exchanges. Ambisafe provides all of the resources a startup would need in order to make this possible.
This includes the legal, strategic, marketing and engineering services you’d need to launch your Initial Coin Offering. You’ll also receive a number of tools for your users, such as a white label wallet. In addition to these resources, an assets manager will issue and oversee the management of your resources.
DropDeck is one of the better-known crypto-based funding facilitators, but works differently to Ambisafe. First, they provide an incentive for users to accurately evaluate a new company. Backers can then fund their chosen company through a transparent and monitored system.
Your funders also have the option to pay in installments, which minimizes their risk and makes funding more enticing. With the presence of a crypto-credit and buyback system, there’s more of an incentive for people to join as each user’s token net worth will increase over time.
If you’re looking to make a splash in the decentralized app (dApp) market, Dispatch offers a widely acclaimed shared ledger protocol to help you make it happen. With their off-chain data storage and smart contracts, you can build a variety of applications, such as a program that facilitates the creation of cryptocurrencies for fundraising.
Smith + Crown
We know that there’s little out there in terms of regulatory authorities to oversee cryptocurrency funding. Smith + Crown aims to change this by offering a complete and curated list of upcoming crowdsales, Token Sales and Initial Coin Offerings. Their multi-tiered research efforts make it easier for investors to determine where their money should go.
This greatly reduces the risk of untrustworthy startups receiving funding. Regardless, it’s important to compare information and statistics across a variety of sources in order to ensure that what you’re reading is true. Check out coins.live for a comprehensive overlook of crypto prices, news, insights, ICO information and more.
Benefits of Using Crypto for Your Startup
Regulations: Due to the decentralized, unregulated nature of cryptocurrency, you’re free from government regulations. This allows you to obtain funding from a much wider audience, as more people will be willing to invest in a private company if their anonymity is preserved.
Lower Fees: With traditional crowdfunding methods come a variety of fees. While most forms of crypto aren’t without some form of transaction fees, doing it right may save you from losing a ton of cash to your payment processor.
In addition to the above benefits, you’ll be participating in a modern form of exchange that many people are seeing as the future. This positive outlook could just give your startup the PR boost it needs in order to succeed.