Fintech Disruptors are Changing How Entrepreneurs Invest and Raise Capital

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The world of entrepreneurship is blood-sport. A very small percentage of startups survive to see their fifth year of operation. There are three major reasons for this:

Improving innovations in cryptocurrency crowdfunding.
As the original blockchain crowdfunding innovation known as Initial Coin Offering (ICO) begins to encounter some resistance both for regulatory and functionality reasons, better ideas are coming up that offer improved assurance of investments. With the original ICO methods, investors are offered tokens, hence they become primarily detached from the parent businesses. This method has seen a lot of investors lose money due to tokens that eventually become overwhelmed by market forces.

USAA, for example, is famous for running a division of their financial and investment division like a real-life Shark Tank. When they invested additional venture capital into ID.me, they gained national attention. This is just one example of many investment made by the financial services giant.

The Kickstarter platform can be restrictive. Startups have to be approved before launching their campaign, and there are tight limits placed on how long a campaign can run for.

In 2017, a SaaS alternative to Kickstarter launched; Thrinacia allows startups to create their own crowdfunding platform, with their creativity being the only limitations on how it works. By providing back-end support, the team behind Thrinacia wants to open-up the crowdfunding model to startups and organizations in every space. And instead of taking a percentage of the funds raised, they charge a flat monthly fee.

Traditional lenders and large banks are not asleep at the switch.
We’ve discussed a great deal about fintech startups. Large banks aren’t sitting on the sidelines. They see what’s happening and are proactively gobbling up successful startups and aggressively launching their own special projects teams.

The reason that this additional investment by USAA is exciting is that this is just one more example of mobile banking being improved through partnerships between established players and industry disruptors. With the popularity of blockchain technology making mobile money management and transfer faster, proper identification of end-users is critical. That’s the problem ID.me is looking to solve– enhancing online and mobile identification of financial customers.

In 2018, I believe we’ll see many more entrepreneurs choose to fund their startups with the help of self-managed kickstarter-style campaigns. We might even see VC funds offer to jump in and help startups that prove they can raise funds in a pre-order campaign.

While everyone dreams, very few individuals are able to grind it out long enough to make a successful business. With years of long hours and minimal profitability, founding a startup is the kind of thing that tries men’s souls.
VC funds want to back good bets, so they look to fund projects that have CEOs with a proven track-record. If this is your first startup, or yet another attempt by a serial CEO that has yet to find success, accessing startup capital can be expensive and brutally difficult.
Every successful startup aggressively challenges assumptions at every stage of growth– allowing for innovation with the advantage of experience. The majority of startups that fail can’t stomach dramatic change.
And fintech startups are jumping into action in 2018. The way we access capital, manage finances and invest in the future will change forever.

Entrepreneurs have access to emerging currencies to fund expansion.
We’ve seen a constant evolution in how we handle money. Before the 1990s, transactions were completed on paper, either with physical currency or a paper check. As the internet blossomed, fintech disruptors like PayPal brought the world of commerce online, allowing companies to accept online payments for physical goods and services.

Independent startups that focus on value instead of short-term profits are viable.
And the longer the runway, the better the chance of success becomes for startups that are willing to innovate and challenge assertions. This is especially true for startups that are able to grow without the constraints of outside investors clamoring for quick returns. Jeff Bezos has proven, through Amazon, that long-term growth focused around user acquisition and revenue growth can trump short-term thinking on profitability.

Do-it-yourself kickstarter platforms.
Kickstarter has been another popular alternative to traditional IPOs. In a Kickstarter campaign, your most passionate customers fund your initial product run with fully funded preorders. This allows for innovators to both prove that the concept is potentially viable– there’s a market desire for the solution they’re offering– and avoid taking on expensive venture debt, or discounted equity positions.

Investors have seen a 532 percent return on investment over the past three years. If they can stomach the risk, and afford a few losses, their winners could more than fund their next startup.

In 2017, a SaaS alternative to Kickstarter launched; Thrinacia allows startups to create their own crowdfunding platform, with their creativity being the only limitations on how it works. They see what’s happening and are proactively gobbling up successful startups and aggressively launching their own special projects teams.

Partnering with Agrello, Blockhive has introduced a more organized process which guarantees investor’s funds as long as the parent business thrives. Blockhive’s Initial Loan Procurement (ILP) serves as a safer method of crowdfunding which allows businesses to still raise funds from a global audience using blockchain technology.

How? Let’s take a look at the fintech disruptions that are going to make life easier for startup founders struggling to access capital.

Today, blockchain technology is creating a reality where individuals are free to engage in anonymous commerce, thanks to cryptocurrencies. Once constricted ventures to traditional IPO fundraising, gone are many of the regulatory strangleholds that.

A very small percentage of startups survive to see their fifth year of operation. Every successful startup aggressively challenges assumptions at every stage of growth– allowing for innovation with the advantage of experience. If they can stomach the risk, and afford a few losses, their winners could more than fund their next startup.

They started as a Harvard Business School project. Students learning about business managements and entrepreneurship launched a project.

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