Simplifying the VC investment process using blockchain technology - EQUI
Venture Capital is a form of private equity investing. Most of these investments are in seed, early or late-stage companies. There are a lot of factors that Venture Capitalists consider while investing in a business:
1) Screening: Before considering any investment, Venture Capitalists go through the company existing financial statements. First, the entrepreneur’s industry expertise and background should be flawless. That should be on the cutting edge of industry development. Is the business model risky, capital intense, novel, and more importantly is the business model scalable?
2) Evaluation - revenues, costs, and profit: this show us that a platform/business can grow and reach a target of profit in a record time. Highly skilled managerial teams with solid domain knowledge and experience are well regarded and perceived. It is important to acknowledge any team deficiency that might have an impact on the startup a Venture Capitalist is looking to fund and try to eliminate it.
3) Negotiations: After finding Business viable, the venture capitalist negotiates the terms of the deal with Entrepreneur. As they have one main objective in mind: getting a return on their investment. They’re in for the money, mostly. Entrepreneur gives the Venture Capitalists some stocks in the company as well as some control over the decisions the company makes.
4) Building Business: Venture capitalists are long-term investors who take a hands-on approach with all of their investments and actively work with entrepreneurial management teams in order to build great companies.
5) Exit Strategy: Venture Capitalists typically look to earn at least 20 times on their investments. Venture capitalists may decide to sell their investment and exit a company. Alternatively, the company's management can buy the investor out. Another option is Stock Market floatation as most Venture Capitalists get stocks in the company they can liquidate the stocks and exit from the investment.
So, it takes more for time for the Venture Capitalists to choose a promising project for their investment. Why can’t we think of a platform which simplifies the steps in finding the right project for the investors? That’s exactly the objective of EQUI, an innovative platform that aims to revolutionize the Venture capital market by taking it to the modern technological world using blockchain technology. EQUI is basically a blockchain based platform which lists innovative projects in various fields like biotechnology, e-commerce, SaaS etc so that the investors can choose their desired ones for making their investment.
EQUI greatly reduces the burden of the investors as it eliminates the first two steps (Screening & evaluation) of the investment process. Because a project is added to the platform only after it has successfully cleared the extensive validation process done by the EQUI Investment team. Besides its own team, it also employs experts to review the legal and commercial attributes of the project. To read more information about the other features of EQUI, please visit https://equi.capital/whitepaper/EQUI_Whitepaper_050218.pdf.
How to invest in the EQUI projects? If someone needs to invest in a project (called investors) using the EQUI platform, then he/she needs to hold the special utility tokens called EQUItokens. These tokens are based on ERC20 standard and will be used as the only payment option to access any type of service on the platform. If someone is not interested to invest in any project, but still want to hold EQUItokens, then they are called holders. EQUI provides 5% of the invested tokens as a reward to both investors and holders when the project gets completed. Kindly visit https://equi.capital/ to learn more information about the benefits of EQUItokens.
Thank you for your time and feedback,
Jack Andrew
@originalworks
The post is full of information
I'm glad you like it. Is there something special that got your attention?
You got a 35.98% upvote from @mercurybot courtesy of @jackandrew!
Nice post
thank you!
Yes..
Interesting project!
thanks, glad you like it
wonderful article about blockchain
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that's very important information, i must keep this post and read it many times
Thanks Jack