How You Can Fund Your Startup With Bitcoin
Bitcoin opened up a new world for companies to fund and get funded. Here are some tools that can help you navigate how it works.
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Cryptocurrency is changing the world as we know it, and one of most relevant ways is how startups are fundraising. Typically a startup would have a few options to get their company off the ground: bootstrapping using their own money, VC funding, or most recently crowdsourcing using tools like Kickstarter. Now, with the trend of cryptocurrency spiking, startups can get creative and raise money using this new form of payment.
There are quite a few platforms and companies that are now making it even easier for startups to fundraise using cryptocurrency.
DropDeck, according to their website, is a royalty and debt financing platform for fast-growing businesses with a token-incentivized mechanism to evaluate and fund businesses worldwide. How does it work?
It works like this: (1) DropDeck provides incentives for people to evaluate companies more accurately; (2) funders can fund companies quickly, and from anywhere in the world; (3) transparency makes it possible to monitor the spending of said funded companies; (4) funders can contribute or lend to a variety of companies, and in installments, to reduce risk; (5) with buyback and crypto-credit you can you can increase your token net worth over time as well as your crypto-credit. This way, all members involved can fundraise and get more funders to join at the same time.
Dispatch is a decentralized shared ledger system that is built to serve as the foundation for future applications spanning all verticals. Dispatch's combination of smart-contracts and off-chain data storage vastly increases the business cases which blockchain can facilitate; developers can build anything ranging from an application that makes it simple to manage and track medical patient data from a variety of practitioners to a program that empowers developers to create proprietary cryptocurrencies for fundraising.
On the Dispatch architecture, developers have the freedom to build new blockchains for the purpose of distributing and trading new cryptocurrencies, or raising funds with their own tokens. Similar to ERC-20, Dispatch will allow users to transact or fundraise via an existing architecture, opening up a new world of possibilities for responsible, transparent raises.
An Ethereum asset platform, Ambisafe is a resource for start-ups looking to raise money with cryptocurrency by making it possible for a startup leader to issue any type of asset on the blockchain in only a matter of minutes, and adding it to cryptocurrency exchanges worldwide. How is this possible? It's all about providing all the resources a startup needs on the platform.
These resources include: (1) ICO Services, such as engineering, strategy, legal and marketing services to perform your ICO; (2) an assets manager, which is an asset issuance and management; (3) and essentials, such as white label wallets and other tools for your token users. They've also got a great blog that will answer the questions any startup owner will have concerning cryptocurrency funding.
Smith + Crown
Additionally, there are websites that make it easier for funders to know what the best companies to fund using cryptocurrency are. Considering that there isn't much regulation in cryptocurrency funding, these websites can make a big difference by making it easier to know what startups are worth backing.
Smith + Crown manages this by maintaining both a curated and comprehensive list of ongoing and upcoming Tokens Sales, ICOs (initial coin offerings), and crowdsales. By providing potential investors with several tiers of research, they make the entire process of funding startups via cryptocurrency much simpler and less risky. Remember, however--if you're looking to fund any startup via cryptocurrencies, you'll want to double-check your research and take a look at several different platforms.
I have taken investment in the form of cryptocurrency but I don't know that I would recommend this without some solid legal & financial advice first. Make sure you know the full picture before you take any of the above routes.
Have you ever used cryptocurrency for fundraising, or are you considering doing so? What are your reasons for being interested in this new vehicle for raising money?