The stories of capitalists successfully invested in cryptocurrencies or funded today’s billion-dollar startups are dazzling. Many people dream about investing money productively and enjoying passive income for the rest of their life. But it is a utopia to become an institutional investor for that.
INVESTING ON A SMALL BUDGET
Crowdfunding platforms have become an open environment for people who want to try themselves as investors and try their luck. Conventional crowdfunding is a contrast to the general approach to business funding, when companies prepare materials, do research, develop prototype products, draw attention to a product, and present it to a pool of people. As a rule, the capital raising process is quite complicated and many projects die at the early stage. The financial market is extremely limited: angel investors, venture capitalists, government funds cannot be distributed to everyone, even if the project is really worthy. It is really great luck to find the right investor and win him over.
Crowdfunding allows entrepreneurs to present their project for free on a platform where people come to invest and obtain a product, commission or other reward. That often turns out to be the only opportunity to raise funding for a startup’s further development. As for the platform users, this is a chance to satisfy their wants to invest and profit.
A MATTER OF REPUTATION AND NEW WAYS FOR TACKLING OLD ISSUES
After investor poured funds into the project the main question is: What if the project fails? Nobody is insured against risks and losses
When implementing DAO.VC ecosystem, the main issue was spotlighted: how to create a mechanism providing all the platform participants with security and reducing investment risks. How to provide projects with investors’ interest? How to spread risks?
- Each project on DAO.VC crowdfunding platform passed through the scoring and preparation program in the LAUNCH LAB, which guarantees it is not a scam. Teams receive thorough preparation for funding, a package of documents and a market-ready company.
- In the context of crowdfunding on DAO.VC, investors do not buy shares, stake in a project or its product. An investor obtains a platform token in exchange for invested funds. Its liquidity is provided due to the platform’s demand on services for startups in the LAUNCH LAB, payments to freelancers providing services to projects, etc. Each capitalist invests in reliable assets having real value regardless of the stage of the project.