Crowdnext: Disrupting Venture Capital Industry with Blockchain Technology
Blockchain technology, while impacting finance industry the most, also has the potential to enable decentralized version of Venture Capital meant for the global digital community. Crowd Venture Capital is striving to make this a reality.
Crowd Venture Capital is a testament to the fact that tech has entered the domain of finance in an unprecedented way. This truly validates the opinion that software is eating the world. In fact, with the exponential growth in adoption of Blockchain technology and cryptocurrencies, it seems now crypto-economics has started the process of new paradigm shift.
Crowdnext would enable the creation of a liquid and comprehensive VC fund enabled by growing adoption of digital currencies. The liquidity will come from issuing of tokens which can be traded on cryptocurrency exchanges. This level of liquidity is not currently present in the VC industry.
Crowdnext’s Proprietary Algorithm
On top of that, Crowdnext has also built a proprietary algorithm, which helps it identify high potential startups that would provide 4-7X returns over a short period of time. And the investors will be able to exit anytime in this highly liquid market which is not possible right now in traditional VC industry. This will be transformational in the VC industry.
Disrupting VC Industry from the inside
Basically, it will eliminate barrier to entry in Venture Capital industry. Right now, this industry is only occupied by big and accredited investors and there are artificial boundaries created through regulations to restrict the entry of small investors in this domain. Although the rationale given for this is that small investors are usually gullible and there are high risks involved in early investing. But we all know that exponential gains are available at an early stage of startup growth and not after it does its IPO. So, it was like saying to the small investors that they don’t know how to logically control and spend their own money and that is why regulators needed to enter.
This unnecessary regulatory burden will be shackled through Blockchain technology. Enabled through decentralization, even small investors will be able to participate in Venture Capital industry through crowdsourcing. This is a massive disruption of the industry. True market forces will be at play. Although small investors may lose some money at the start, but this democratization will lead them to become more informed and by having a skin in the game, they’ll better educate themselves to make more rational investments in future. The Venture Capital landscape a decade from now will look altogether different. Right now, entrepreneurs are often exploited by these big VC players who use their decades of experience to manipulate entrepreneurs for their own benefit. But in the face of no other alternative, entrepreneurs had to go for VC funding to scale their businesses. However, once crowd venture capital comes into picture, entrepreneurs will prefer this option over traditional VC and the current VC industry will also have no option but to adapt to this wave of disruption.
Crowdnext is a pioneer in this trend towards adaptation in the face of disruption. With strong expertise in identifying good investment opportunities, Crowdnext will be able to provide this service to all levels of investors, big and small, and where it would be able to profitable exit within a short time as well, as opposed to 5-7 years in case of traditional VC.
Listing down some of the benefits associated with Crowdnext:
i) It will provide accessibility to even small investors to enter VC industry
ii) As the assets are digital and global in nature, there will be 24/7 market operating non-stop for the global community which is a need for our digital society
iii) Cutting edge security of the level of physical bank vaults enabled by multi-sig protected cold wallets where these digital assets will be permanently stored
iv) Complete market transparency – all market orders will be executed in an open exchange with no hidden costs
Partnerships & Current Portfolio
Crowdnext has already partnered with big players like Redclays Capital, Deloitte and Mourant Ozannes, and Member of Crypto Valley, Zug. Which shows that the industry recognizes the inevitability of such disruption in VC industry brought about by Crowdnext. The current angel portfolio of Crowdnext includes Tallysticks, Bitcoin Romania, Checkbook, Storj.io, Chronicled and Bitstamp.
CrowdNext will be built over Ethereum platform and will make use of smart contracts in order to facilitate this disruption. The use of smart contracts will bring great efficiency as the orders will not be contingent upon human interpretations but self-executed and this will reduce legal costs to a large extent.
The founding team has decades of experience in the field of finance and technology. Team background is very important in order to make a calculated guess on the success of the project.
Srini Chakwal (Founding Board Member) comes with over 15 years of experience in Private Equity and Venture Capital. As an inside man, he must be well positioned to understand that there is a need for disruption in traditional VC industry.
Craig Sultan (CEO) served as Investment Director at Redclays Capital and has over 25 years of experience in investment management.
Santosh Prasad (CTO) has been a professional software developer for the last 15 years and a Blockchain Evangelist. In addition to being very passionate about Blockchain technology.
Chris Ocansey (VP) is an experienced professional with over 15 years in finance, providing insight and leadership on internal audit and compliance reviews.
Maulin Thaker(CFO )has over 12 years of experience across Equity research, Commercial Lending, Corporate finance and Consulting. At Moody’s Analytics Knowledge Services (a division of Moody’s Corp),
Private Sale Crowdnext Token is going to be launched soon. The token will have the symbol – CNXTand You can stay updated on the same by visiting www.crowdnext.com and adding your email id to the subscriber list.
Road Map Review
In the face of absence of actual product, a roadmap plays an important role for an investor to decide on the investment, and this is especially true in the crypto space. Roadmap helps to make sense of the product development timeline that the team is committed to.
CrowdNext comes out with an ambitious road map. It is planning to come up with an alpha version of CNX platform very soon. This platform will be used to ensure continuous liquidity for Crowdnext’s own token – CNX. By Q2 2018, the team aims to integrate CNX platform with Ethereum smart contracts via creation of web service API enhancement and also partners with other top cryptocurrency exchanges to enhance liquidity of tokens which are listed on CNX platform.
Another ambitious thing about CrowdNext venture is that it wouldn’t be limited to Blockchain; it would also explore development of smart contracts using hashgraph, another consensus algorithm like Blockchain and tangle.
For an investor, the real question is whether to participate in CrowdNext’s pre-ICO/ICO or not. There are always risks to investment in such an emerging space, but based on the utility of the project which has transformational potential to disrupt a large VC industry, it makes sense to get into this space early. As the credibility of the team enhances when they start giving quick and big returns to their investors for their angel portfolio, the value of the underlying token – CNX – is also expected to go up. That being said, nothing can replace “DYOR (Do your own research)” investment thesis.