Crowdfunding Made More Legitimate Using Cryptocurrency and Blockchain
Thomas Carter is changing how startup funding is carried out and building faith in cryptocurrency. Carter is a serial entrepreneur with over 30 years’ experience working in the startup scene. He has been involved in raising funds in industries ranging from sports to marketing, finance, and multimedia.
Securing funding can be a nightmare for start-ups and since the Cryptocurrency startup funding exploded onto the scene in 2017, there have been multiple scams involved. Carter himself said that raising capital to fund your business is arguably one of the most difficult and trying entrepreneurial encounters as the process is too complex with too many moving parts. He therefore developed an alternative to bank financing that will not involve messy scams that he called Dealbox.
What is Dealbox?
Dealbox is a business accelerator and crowdfunding platform to tokenize start-up companies and it is disrupting the traditional financing models. The company uses the latest financial technologies to handle large sets of data in real time. This will enable entrepreneurs to share their business ideas with multiple potential investors at the same time instead of going on a round of repetitive pitches.
Dealbox has realized a new approach to crowdfunding by tracing capital from family offices, private equity firms, and knowledgeable, accredited investors during pre-sales before opening the investing to the public. Carter states that they are leaving behind the known crowdfunding where indie filmmakers request for donations in exchange for free T-shirts. Instead they execute a crowdfunding that enables start-ups to secure small or large investments from a more diverse pool of investors.
Why Choose Dealbox for Your Start-Up Funding?
Dealbox is a pioneer in digital marketplaces offering Security Token Offerings (STO). STOs were created as an improvement to Initial Coin Offerings (ICO) which have little regulation making the industry vulnerable to fraud. STOs are backed by a tangible asset are registered with the Securities and Exchange Commission (SEC) making them subject to regulations hence, they offer more security to investors. STOs are more trustworthy and for start-ups it is a great place to source for investors.
How Dealbox Works
Investors will need to purchase DLBX tokens using fiat currencies or cryptocurrencies during pre and public sales in order to invest in Dealbox startups. Dealbox will then give equity stakes to the investors in the companies they have invested in. After the sale, the crowdfunding and business accelerator then undergoes a “lock-up” period for 12 months where the tokens are fixed at $1 and do not trade freely protecting investors from initial volatility.
The start-ups will have an exit like pursuing Form s-1 Filing or uplisting to an exchange. The company’s profits will be distributed to the investors via royalties.