A couple of years back it was almost impossible to raise the capital for a new project globally, thanks to the proliferation of blockchain technology, now the global community can participate in the crowdfunding with the help smart contracts. Raising funds with the help of traditional financing system is very hard and a cumbersome process Independent of the type of fundraising, whether it is a self-funding, bank funding, or venture funding, all have their own disadvantages. Out of all, venture funding is almost impossible without a running product.
Blockchain helps to make a crowdfunding process safe, transparent, accessible from anywhere in the world. One of the popular ways of raising the funds is Initial Coin Offering (ICO). In this process, startup companies are creating smart contracts on blockchain platform and creating their own cryptocurrency to raise the funds. Investors are buying the crypto-equities similar to stocks in crypto exchange, and its value varies based on the company's performance.
But, here we have a major issue, to raise the capital with the help of crowdfunding, a team of blockchain expertise is required. By analyzing the one-year data from all ICO based projects, most of the startups are spending 50% of their task in ICO activities, which is a kind of waste after the completion of ICO. Moreover, it is difficult for a startup company to build a full ecosystem of ICO advisors, blockchain experts, and technical infrastructure. Looking at these issues, various companies are providing a readymade platform for investors and entrepreneurs to outsource the crowdfunding process so that they can concentrate on the real business requirements. One of such companies is synapsecoin, who is the building the next generation financing system based on the blockchain technologies.
Synapsecoin platform will help to connect innovative projects with investors by removing the hassle of security, transparency, and legality. Synapsecoin provides various services as part of their offering:
- Providing fundraising tools, advice and crowdfunding support.
- Crowdinvesting and crowding-funding services for investors and projects respectively.
- An in-house crypto exchange to buy and sell different kinds of cryptos with the help of SYP coin.
- Big investors can also choose to remain anonymous by activating the anonymous mode.
To summarize, Synaspecoin helps to connect investors and entrepreneurs by removing the headache of crowdfunding infrastructure. Nevertheless, it also reduces the overall crowdfunding cost and time/