"There is nothing like a dream to create the future. Utopia today, flesh and blood tomorrow." —Victor Hugo
“Every social organization relies on something that is not realized or feasible, but has the ideal that is somewhere beyond the horizon, a lighthouse to which it may seek to approach if it considers that ideal socially valid and generally accepted” - Richard Stahel
Venture Capital Firms Invested $33 Billion Dollars in Crypto and Blockchain Startups in the year 2021. This amounts to nearly 5% of the money invested by VC firms across all sectors globally. New data from Galaxy Digital shows VCs invested over $10.5 billion in Q4 2021, the most of any quarter last year and more than all of 2020 combined.
In addition there are around 500+ crypto hedge funds collectively managing $1 Billion Dollars Assets under Management (excluding crypto index funds and crypto venture capital funds). Over 60% of these funds have less than $10 Million in AuM (Assets under Management) with fewer than 10% managing over $ 50 Million. Further these funds are proving to alternative method of investment into the blockchain space and startups for those investors who have barred from investing in digital assets by their home countries.
Further, many of the early blockchain investors who have made money investing in the cryptocurrencies have ventured into creation of new venture funds for investing early stage blockchain projects in search the next 100X-1000X gems.
In many ways it is easier than ever for blockchain startup founders to raise financing, and it’s easier and more convenient than ever for investors to find and choose where to place their bets. However, the speed and convenience has come at a certain cost. In the pursuit of incredible high investment returns on the side of investors, and large amounts of financing with only white-papers and advertising pitches on the side of entrepreneurs, the blockchain investment space grew by leaps and bounds becoming an industry of billions of dollars.
Since the crypto industry is revolutionizing at a rapid pace, there are plenty of emerging projects that depend on the decentralized world to raise capital for their business operations. Within an unclear legal framework — and even believed non-existent — , the challenging Initial Coin Offering turned into an increasingly prominent fundraising mechanism for new companies and a great investment opportunity for retail investors, reaching overwhelming numbers all over the world during last years. However, while the global ICO market became ‘too big to ignore’, many cases of undesired behaviour and scams occurred, generating some alarm in the participants and attracting the attention of regulators. And, along with it, at the end of 2017, the ‘crypto winter’ started.
After the death of ICO (Initial Coin Offerings) due to their inherent flaws it was the dawn of IDO/IEO (Initial Dex Offerings/Initial Exchange Offerings) and since the crypto landscape grew at such a fast rate in 2021, the year brought in with itself an influx of new crypto launchpads.
Crypto launchpads are also known as crypto incubators. These are basically platforms that allow blockchain-based projects to raise capital while giving away access to early-stage token sales for their group of investors. Getting away into early-stage token sales would also facilitate a bargain program for the investors before its public launch in the market. Moreover, since the cost of launching a crypto launchpad is low, increasingly more and more projects are migrating towards launchpads for fundraising.
However in the current scenario the typically a project raises only 5-10% of their funds from the crypto launchpads while the 90-95% are raised from the crypto Venture Capitals and Hedge Funds.
Unlike in the web2.0 start up environment, where the founders have to report regularly on the usage of funds to the investors, most of web3.0 founders have no such obligations to do such financial reporting, which leads to erratic spending, gross negligence on treasury management and lack of financial discipline.
In majority of the cases web3.0 investors have no control or oversight over the progress of the project leaving the investors at the conscience of the founders. It is in this juncture we decided to create a platform which builds transparency to treasury management and reporting between web3.0 investors and founders.