How Dacxi Chain tokenized crowdfunding will bring genuine global equality to innovation funding
Say you’ve invented a new product. Something the whole world has been waiting for. It could change the lives of millions of people for the better. To bring your vision to life you need funding. Maybe a few million dollars, or more.
The only problem is, you don’t live in Silicon Valley, New York City, Shenzhen or Shanghai. And that means you’re very unlikely to be able to raise the money. Sure, you might get a little bit. But probably not enough, and probably with too many strings attached. So your project stalls, or worse – it never even gets started.
Sadly, that’s exactly what happens to millions of great ideas all over the world, every single year. Dacxi Chain tokenized crowdfunding will change that for good.
The Dacxi Chain’s system will give innovative teams in developing nations access to the same level of funding as a compaby based in Silicon Valley or Shanghai.
It will bring forth a revolution in tech innovation, reaching every country and benefiting countless people. And it will revolutionise crowdfunding as we know it.
But before we look at Dacxi’s solution, let’s take a look at the problem; the concentration of major tech funders in only four places in the world, and the unfairness and economic inefficiency this leads to.
How the Silicon Valley system works – and doesn’t
If your company is lucky enough to be based in the Silicon Valley area, there are several different ways you can get your new product funded.
Seed Accelerators - these startup incubators will invest from $10-$150K US in return for an equity stake of 6-10%. The idea is that this initial amount gets a company to the point where they can pitch for Seed funding to develop further.
Angel Investors - these are wealthy individuals who want to help startups grow – often because they believe in giving back to the innovation community. They will generally make a small, one time investment to bump a project along to the next stage. There are also several groups of angels who have banded together to offer higher funding levels.
Venture Capital firms - these are the big guys with dozens or even hundreds of projects on their books. They tend to focus on later stage projects, and even then only those with 10x potential returns.
The key thing all these methods have in common is that they are all based within around 20km of each other – and they expect you to be in the neighbourhood, too. In the other major funding centres, the situation is similar. They want you to come to them. And once you do, they want you to stick around so they can keep an eye on their investment.
So what happens if you can’t (or don’t want to) relocate to Silicon Valley, New York City, Shenzhen or Shanghai? Probably nothing. No funding, no growth, and no success.
Funding from Venture Capital firms comes with another problem attached; the issue of control. When you get a large investment from a single source (like a VC company) it always comes with strings attached. When you accept funding, you give up a certain amount of control of your company. Business decisions need to be approved – often by people who don’t have expert knowledge of your product or its market. This can lead to tension and conflict, which can affect the future of your business.
Not all innovation happens where the big funders are located
Entrepreneurs in proven innovation centres like Oxford, London, Singapore, Sydney, Auckland, and Stockholm laugh at the notion that there is plenty of early stage funding available. Of course, there is some funding available – for example from sources like the newly established Oxford University ‘Oxford Foundry’ startup accelerator. But overall, funding is grossly inadequate – especially considering the breathtaking number of potential opportunities out there.
So, if brilliant people in established innovation centres find it next to impossible to get funding, imagine what it’s like for entrepreneurs who live everywhere else? The fact is, for 99% of the world, access to Early Stage funding is, for all intents and purposes, non-existent.
That’s the unforgivable failing of the present system. There are just as many great ideas and entrepreneurs in Australia, Scotland, Chile, Indonesia, Vietnam, India, Estonia, Uganda, Turkey, Nigeria, and Brazil as there are in New York or Shenzhen.
Innovation doesn’t discriminate. But innovation funding most definitely does.
Where do good ideas come from?
The answer is anywhere and everywhere. There are clever, highly motivated people with exciting new products under development everywhere. That’s why the Dacxi Chain has been designed to be a truly global crowdfunding solution. Dacxi believes an innovator in Jakarta should be able to get funding from investors in Cairo. Or Seoul. Or anywhere else where there are people who understand the product’s potential, and want to get a stake in its success.
How will the Dacxi Chain bring equality to equity crowdfunding?
Tokenization is the cornerstone of the Dacxi Chain. It enables investments to be made and ownership stakes to be transferred frictionlessly. All without the need for the entrepreneur and their investors to be located in the same town – let alone in the same country. The Dacxi Chain will create a truly global community of entrepreneurs and investors, where everyone will have the same opportunity to create new wealth through technical innovation. The rewards of Early Stage hyper-growth will no longer be the exclusive preserve of Accredited Investors. At long-last, everyday people will get that opportunity, too.
The Dacxi Chain tokenized crowdfunding system will raise more money, more quickly, and from the right investors – from anywhere in the world. While established centres like Silicon Valley will still have their place, the Dacxi Chain will massively extend the reach of the innovation funding market, and give it the power to reach its true potential.
For those in Silicon Valley or Shenzhen, this idea might seem disruptive. To everyone else, it just seems fair.
How the Dacxi Chain global tokenized crowdfunding system works
The Dacxi Chain will sit on top of a global network of local Dacxi supported crypto wealth platforms, run by locally licensed companies.
So, how does it work exactly? Here’s an example of how the Dacxi Chain will work in practice, to connect innovators and investors around the world.
Let’s say an orthodontist in Sao Paulo has invented a revolutionary dental product, which she has validated in her local market and is selling already. She knows other dentists all over the world would use it, if they could buy it. But scaling production and international marketing is expensive. She works out that she needs to raise USD$2 million to accelerate growth and expand to overseas markets.
Through an advisor, she approaches Dacxi Brazil’s Opportunity Division, and an offer agreement is made. Dacxi secures the shares, and its staked blockchain writer node ‘mints’ tokens for sale. Shares are offered globally through Dacxi licensees to investors who have indicated their interest in a dental offer. An Irish dentist, who is registered with Dacxi Ireland, sees and understands the product’s potential. Through the Dacxi Ireland platform, he swaps Euros for Dacxi Coin and sends his investment to Brazil on the Dacxi blockchain. His new investment tokens appear in his Dacxi Ireland portfolio.
The system will include a translation function, to allow for global term sheets – giving everyone within the Dacxi Chain ecosystem the opportunity to invest, no matter where they’re based.
When the offer is fully funded, the orthodontist in Sao Paulo converts the Dacxi Coins she has received into local Real. She begins expanding her business, confident that she has the right amount of funding to achieve her objectives.
Under the current crowdfunding system, the above example is almost unimaginable. But with Dacxi Chain tokenized crowdfunding, it will be an everyday occurrence.
And who knows? Maybe someday the Silicon Valley will want in on the Dacxi Chain action, too.
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