Dragon’s Vault Uses Crypto to Build a New Venture Capital Ecosystem
For decades, the ability for entrepreneurs to turn their great ideas into marketable products has remained constrained by their ability to attract early-stage funding. Some would scrape up enough money from friends and family to get started, only to run out of resources before creating a self-sustaining business. Others managed to attract the attention of venture capital firms, often at the cost of diluting their original investors’ stakes.
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Needless to say, it’s a system designed to extract maximum profit for the biggest investors, while leaving the entrepreneur with difficult decisions that aren’t always in their best interests. The advent of internet-based crowdfunding has eased the path for startups somewhat but hasn’t been the panacea many have hoped for.
The cryptocurrency revolution brought the possibility of ICOs as the next great startup funding vehicle. However, the ICO boom didn’t last – mostly by fraud, failures, and regulatory scrutiny. One company holds out hope that crypto assets can become the next great engine for startup innovation. And they’re putting their money where their mouth is.
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Investing in Entrepreneurs, Not Just Ideas
Dragon’s Vault offers a crypto twist on the idea of venture capital. That is to say, they’ve built a portfolio of crypto assets they’re using to underwrite a radical new approach to early-stage and beyond funding. Their purpose is to create a new funding ecosystem that provides entrepreneurs a way to leverage their available capital to create long-term cash flows as well as a reliable income stream for themselves even before having a viable product.
In practice, this means that Dragon’s Vault has created a hybrid investment fund leveraging both crypto-assets and venture capital. They use their conventional and crypto asset investing prowess in a high risk/high reward structure to turn startups’ limited operating capital into a stable funding stream. At the same time, they make it safer for the entrepreneur’s friends and family to invest by putting them first in line for the return of excess capital.