Investing in a startup is often associated, by the majority of people who are not interested in the world of venture capital or that stay away from it, in an activity completely dependent to fortune, like bet all on a horse: in short, to gamble. A concept very far from what the venture world should represent, if it is approached in the appropriate ways. And again, it may seem a gamble to invest in new businesses, if we look at the statistics relating to the success of startups: unfortunately, for 9 out of 10 startups, or the business does not become disruptive or, worse, it fails. These statistics therefore determine an increase in the perception of risk: in the end deciding to finance a startup often translates into “betting everything” in a idea that you fall in love with, which represents one of the most common mistakes. And finally there are the profits on the investments made in a business project (if the startup reaches success): we are talking about an average long time horizon, ranging from 5 years or more.
SEED Venture, an open source platform based on blockchain technology, aims to innovate the world of venture capital, approaching any owner of capital to invest in the world of startups (while today he is reluctant to do so) so that no good idea will be wasted. In fact, SEED Venture radically changes both the approach for investors and the business rules for incubators and their startups, all in the pure philosophical respect of the blockchain itself: the investor will decide to invest with the knowledge that financing innovation has elements of major risk, as we are talking about financing the future, but at the same time these risks are reduced thanks to the mechanisms of the platform. Anyone can freely access without predetermined constraints, and be a participant in a transparent and fluid ecosystem that offers advantages never offered before. The elements that will be decisive, and that will attract that part of investors that are absent today, will be competition, reputation and results, elements that will push all the players to converge towards a single goal: capital that makes innovation take off and that, thanks to talent, good ideas and the incubator’s expertise in managerial support, will compete to achieve success and profits.
The new investors, thanks to the mechanisms of Seed Venture, will invest, and will NOT bet. They can do it in a totally autonomous and transparent way; they wil be able to diversify their investment and to verify the uses of the invested capital. The investor will be able to follow the projects throughout their journey in an active manner, ready to reduce, modify or suspend when he wants the financing of one or more pools of startups on account of lack of results or behaviors not appreciated; therefore not an action left to chance and luck but an investment that the investor can directly control thanks to the liquidity of the token that represents it. The free decision to finance will be immediate, public, immutable, and not conditioned by amount or periods of time. The risk for the investor is minimized because startups that do not comply with the plans presented, which the incubator will attest, will not receive additional funds; the investor will be able to finance more pools, which will include more startups chosen with professionalism and experience by the incubators, or switch from one incubator to another, and invest in more incubators.
SEED Venture is the platform that will overcome the very concept of venture capital intended for a limited group of people, that is reserved for few operators that are able to juggle the complex evaluation issues: SEED Venture will open the doors of innovation for the common investor, who until now prudently kept away from this world. An investment that will no longer be tied to chance, but that will always be controllable and modifiable by the investor, who will have all the tools to maximize the chances of economic return.
Investing in startups will no longer be a gamble for all those people who are not familiar in the field, thanks to a new model provided by the platform that uses a radically innovative underlying technology: it will mean freeing up blocked resources and making serious investmentsin innovation, which has always been the tool for man to improve the present to create a better future.
