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Crypto Crowd Funding Is Forging A New Era Of Startups And Unicorns

May 17, 2021 4:13 AM ET
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  • Crypto crowdfunding is swiftly gaining mainstream traction as it offers some of the facilities limited to just Wall Street giants up until now.
  • Startups that fail to meet their funding targets can turn to crypto crowdfunding to achieve their target without much of the complexities involved with traditional funding.
  • Crypto crowdfunding not only helps build unicorns of tomorrow, but it also brings investment opportunities.
  • Crypto crowdfunding allows them to own a stake in the company with a small amount.

Cryptocurrencies over the past decade have established itself as a viable alternative form of investment, but more importantly, it has brought some of the finest use cases to the real world that was mostly available to wall street institutions. Be it key financial tools such as exchange-traded funds, or availability of banking services at minimal cost and interest rates, but most importantly the power of crowdfunding, allowing entrepreneurs with literally just an idea to help them build a company using money raised on public platforms from people who understand and are ready to invest in the idea instead of the traditional way of VC funding and crowdsourcing platforms with over the top charges.

A recent report indicates nearly one-third of the budding startups fail to achieve their funding targets via traditional platforms and as a result years of hard work and capital goes for a toss. The global crowdfunding market size was $84 billion as of 2018 and is expected to reach $114 billion by 2021, as per data from smallbizgenius.net. About 74% of current crowdfunding projects don’t get their maximum quota. This is where crypto crowd funding comes into the picture and help startups meet their funding target even if they fail to reach the same from traditional VC platform.

The era of Initial Coin Offerings (ICOS) might have been marred into controversy because of the growing number of scams, but people need to realize that scammers are everywhere and the onus falls on everyone to ensure that the project they are investing in has no red flags. The process of easy fundraising cannot be blamed because people fell for scams. Even today companies are raising funds in a similar fashion and companies with the potential to portray their idea into a full-fledged business have made the most of it. The era of crypto crowdfunding has produced the most number of unicorns over the past few years even when the popularity of digital currencies is far from the top.

What Makes Crypto Crowd Funding Unique?

Crypto crowdfunding and Defi are two key use cases to emerge out of the crypto universe over the past couple of years, while crypto crowdfunding makes it easier for entrepreneurs to raise capital for their idea and build an ecosystem around it, Defi ensures seamless transactions with the help of smart contracts to ensure no wrongdoing. After controversies with ICOs, a coming of age crypto startup QuiverX is integrating the best of crypto crowdfunding with Defi to bring in a new era of capital raising for startups.

QuiverX Capital, a Defi lending protocol that acts as a unique platform for digital assets to interact with the physical world. It acts as a lending platform and a decentralized crowdfunding hedge against inflation. The ecosystem is remodeling traditionally inaccessible markets and offering high-value investment opportunities at a lower barrier of entry — thereby granting investors a percentage of high-value assets proportionate to their investment.

The crypto startup-led fundraising technique is a unique take on crowdfunding while ensuring that the startups looking to raise funds can get access to some trusted fund supply, it also offers a unique opportunity for retail investors investing in those projects to own a portion in the company even with a minor investment. The QuiverX platform has built an entire ecosystem with a focus on ease of use so that anyone with no prior understanding of funding can use the platform to fund a company that could eventually turn into a unicorn in coming years.

Investors can buy the native token QVX to invest in a number of listed projects on the platform that in turn expand their investment portfolio without having to buy multiple tokens.

Crypto CrowdFunding Eliminates Complexities of VC Funding and Other Traditional Methods

The unique blend of Defi lending and crypto crowdfunding eliminates many limitations and complexities involved with the traditional fundraising techniques and allows retail investors to part own a stake in the startup by simply staking their QVX token in numerous staking pools. The staked tokens offer a compound earning system with additional rewards when staking for the entire duration of the agreed-upon term. The platform promises some of the most competitive staking programs in the industry, up to 23% APY higher than leading competitors.

Crypto staking is not a new phenomenon either, but integrating it with a crowdfunding platform makes things better for both parties. The investor earns high staking rewards until their tokens are locked, at the same time companies looking to raise funds have to access to more capital as more investors pool in their assets that can be utilized to meet their funding targets.

The platform has also partnered with leading blockchain security firm Certik that offers best-in-class verification tools and up until now, it has secured $8 billion in assets secured and 118k lines of code audited. The firm has also partnered with Plethori to bring ETF functionality and investment option for the retail customers.

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