Dacxi Chain: Solving the Problem of Investor Confidence in Equity Crowdfunding

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The difference between speculating and investing comes down to a realistic expectation of a positive return on your money.

For a speculator, that confidence comes from their ability to accept their own wishful thinking as fact. For an investor, confidence is born of a cool-headed assessment of hard financial data and in-depth background research.

Imagine having some money to invest in innovative equity crowdfunded project. Investors would prefer a return on their money in the future. The initial investment could be a thousand dollars or ten thousand dollars, but this doesn’t change the need for confidence based on meaningful data and accurate information. This also means trusting the people behind the opportunity, such as the project’s founders and those who manage the investment process.

With the current crowdfunding model, this level of confidence is very difficult to develop. Why? Because nine times out of ten, the project lacks the amount of information needed to satisfy a cautious investor.

The Dacxi Chain aims to solve crowdfunding’s information issue for good. It has a totally unique approach. Connecting entrepreneurs and investors all over the world, and building investor confidence.

The Crowd is Still Too Small

Today, crowdfunding is run locally. Investors typically only have access to projects in their own country. For innovators, this severely limits the amount of funding available to help develop and market their products. For investors, it severely limits the range of attractive investment opportunities on the table.

Inadequate funding can be even worse than no funding at all. Many projects get enough money to take a few steps towards their goal but then suddenly run out of cash and grind to a halt. This wastes all the time, money, and resources that have been put into it to that point. In fact, the prevalence of failed startups due to inadequate funding is one of the key reasons why the crowdfunding market is failing to reach its extraordinary potential. It does nothing for the confidence of investors when they suspect that the project they are interested in could be underfunded.

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Many early-stage projects are lost worldwide because of a lack of available funding. And that’s despite a huge appetite among investors for great Early Stage investment opportunities. After all, the Early Stage of a company’s trajectory is where the hyper-growth in value happens.

The Dacxi Chain’s tokenized crowdfunding system will, at last, allow crowdfunding to scale globally. Unlocking hyper-growth opportunities for millions of people around the world.

The Dacxi Chain Solves the Problem of Confidence

The benefit of the Dacxi Chain is that it provides confidence not only for investors but also for entrepreneurs. For investors, the Dacxi Chain makes meaningful financial assessments possible. While for entrepreneurs, it ensures their ability to acquire the level of funding they need to bring their product to market.

How Does It Work?

Entrepreneurs who need funding to develop and market their product – either locally or internationally – will approach a locally-based Dacxi innovation support team. The Dacxi team will then conduct a rigorous examination of the project, including the fundamentals of the business, its owners, and their financials.

If the project meets the stringent criteria set by Dacxi, the details will be uploaded to the Dacxi Chain platform and shared with investors all over the world – dramatically increasing the funder base, particularly compared to the current locally-constrained crowdfunding model.

The Dacxi Chain also places a significant emphasis on matching projects to people who understand the relevant industry. For example, a new agricultural innovation will be shared with people who have registered their interest in that sector.

This means Dacxi Chain investors will already have an intrinsic understanding of the market for the product, the problem it will solve, who will buy it, potential complications, and market rates. In other words, they will be able to effectively and competently evaluate the investment opportunity. And that competence translates to confidence.

Conclusion

The Dacxi Chain’s tokenized crowdfunding platform is set to improve and empower crowdfunding. Helping the sector realize its enormous potential, bringing new technology to life, and creating positive change for people around the world.

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