As more financial and economic markets opt into digital cryptocurrencies as an alternative source of payments for brands’ goods and services, the capital funding processes for small and kickstart companies may also rely on these cryptocurrencies and NFTs. These blockchain technologies perform differently than traditional payment processes; for instance, there are transaction fees, non-compatible tokens across different blockchain networks, and transfer speeds that may limit companies when running a funding campaign.
For this reason, startup businesses must understand how these blockchain crowdfunding systems operate and how each platform supports different business needs. To learn more about blockchain development services and the crypto technologies best suited for your business, enterprises may reach out to a local Los Angeles blockchain development company, like SunlightMedia.org.
What is Crowdfunding?
Crowdfunding is the process of accepting assistance from external parties, not associated with a specific brand’s internal operations, with the funding of scaling business productivity, growth, or project developments. No individual investors stake their earrings in the potential growth of startup businesses. In regards to blockchain technologies incorporated within crowdfunding platforms, these systems typically support an Equity Crowdfunding method, which refers to private organizations sharing equity ownership as a result of accepting donations or funds.
As blockchain continues to trend in payment transfers, more companies may be offering to trade or reward contributors with non-fungible tokens that support a tokenomics system. The early investors claiming ownership of these initial NFTs may be able to profit more from these individual digital assets due to the rarity and the company’s potential to expand in local and global blockchain networks and markets. For companies interested in opting into blockchain crowdfunding technologies, it is recommended to review resources such as Top Strategies to Grow Crypto Marketing Businesses.
Different Types of Crowdfunding
When opting for a crowdfunding platform, it is helpful to understand the different types of crowdfunding methods currently used on these platforms. The different types of crowdfunding systems involve rewards, debt, equity, or donations. Typically, donations are contributions delivered directly to a business campaign to support business projects and growth. Debt funding is similar to peer-to-peer (P2P) lending, which is the distribution of funds in the form of loan types with accrued interest that must be repaid by accounts receiving the funds.
A rewards crowdfunding platform has the potential to incentivize external parties to donate to support company campaigns while returning appealing rewards such as physical brand products, discounts on services, or assets that donors may claim ownership of. Lastly, equity-type crowdfunding systems offer organizations the opportunity to “sell-off” a portion of their company in exchange for capital. In this manner, companies may prevent lending shares or equity of the company to one solo investor, hence remaining in more control of how shares are outsourced.
Blockchain Business Crowdfunding Platforms
To raise capital on real estate investments, Meridio offers companies to split up shares from their property into digital shares. With the emerging blockchain technologies integrated within the crowdfunding platform, both investors and property owners may expedite transactions and documentation verifications by bypassing intermediaries such as accounts, attorneys, brokers, and bankers.
Meridio’s cryptocurrency may operate on smart contracts governed by the principles used by DAI’s stable coin. This asset token consists of a smart contract that runs on an on-chain compliance layer, which allows for modifications on each copy of the NFT. This process expedites transactions as parties may trade between each other using one type of form of payment that is secure upon authentication.
To revolutionize conventional crowdfunding processes, SeedOn offers blockchain solutions for equity-based crowdfunding. Due to the blockchain design, stakeholders may engage in traceable and more transparent transactions as the verifications for each record further authenticate the users, campaigns, and payment systems. The SeedOn crowdfunding model encourages enterprises to set up target goals for each campaign where the platform will then place restrictions on secondary steps until the initial target goals have been satisfied. This process ensures that losses are kept to a minimum and that any allocations of funds may be returned in the scenario of a campaign undergoing launch failure.
There are numerous features on SeeOn that may prove beneficial for end-users and the businesses hosting campaigns. The Crypto token “SEON” may be used for securitizing and tracking donations in real-time while offering investors the ability to store the digital assets in the savings dashboard for accumulated digital asset value growth. Built-in mechanisms within SeedOn ensure that intellectual property is protected, registered accounts undergo authentication processes, and individual transactions retain necessary records for enhanced user transparency.
Tecra Space offers blockchain solutions for crowdfunding business growth, startups, and projects. In return for contributing to different business campaigns, users may receive Teracoin, the Tecra Space NFT, which may be applicable for trading on more popular blockchain networks. Tecra Space may be a viable solution for business crowdfunding needs as blockchain equity-finding systems such as these may not include taxes in each transfer and do not limit companies with an upper cap limit when collecting contributions.
With Tecra Space’s Teracoin Smart Deposit features, users may place economical contributions for various business campaigns and then store their NFTs into their savings for accumulated growth. Donor accounts may stay up to date on the success stories of different campaigns, review blogs and news updates about the TeraCoin and upcoming promotions, and contact support for more specific IT assistance.
In conclusion, financing your business in competitive industries may prove to be a difficult endeavor without the use of gaining support from external parties. In addition to traditional crowdfunding processes, companies may opt into blockchain-based crowdfunding programs to incentivize their clients, supporters, and contributors into receiving partial equity of company shares of NFTs while earning additional revenue, brand awareness, and company growth.
Jhonathon Badalof works at Sunlight Media LLC in Downtown Los Angeles, California. As a Project Manager, Jhon collaborates with clients on website and app design and development, marketing, and creative solutions for campaigns. In addition to Project Management, Jhon is a content writer who writes articles that rank well on Google and other social media platforms. His skill sets include social media marketing, eCommerce, brand development, programming, web design, and graphic design.