Early stage fundraising is always risky. Solv has a solution for early stage crypto companies, or any company that need to take on cash without risk – convertible vouchers!
It is a simple concept. Companies need to take on capital to expand. Pretty easy to understand. But – the fundraising process can be complex. The existing Venture Capital (VC) system is predatory. VC firms want to take as much as they can in the early stages, and make as much as they can later on.
Here is the thing – there is a huge amount of room for innovation in crypto fundraising. Solv has it nailed. It is all about ownership. If a company can own a part of a project, it will be more than willing to pump cash into the project.
Solv Has it Working For The Masses
There is no reason why fundraising should be difficult, or risky to the founders of an idea. Investors probably aren’t going to accept tokens without ownership for much longer. They want to own a part of what they are investing in. Solv has the answer.
So what is a convertible voucher?
It is a lot like an option, or a warrant.
If you aren’t familiar with these terms – don’t worry. It is easy beans.
According to the company,
“A SOLV Convertible Voucher on Solv Marketplace testnet. DAOs and startups can create an ERC-3525 token containing locked token assets through the Convertible Voucher. Those assets adhere to the maturity date, nominal token value, and bond range.”
The idea of a bond might be a breath of fresh air in the crypto industry. In reality, this structure is extremely flexible, and will help new companies, or any company, gain traction in the fundraising environment. Without any risk.
Making it Grow
There are an amazing number of new ideas in the blockchain arena. It all comes down to funding. Let’s be really there. No founder wants to puke up ownership. That should not be an option. Tokens were a pretty good way to maintain ownership, but that is all over now.
It has to be a shared deal. The big boys won’t buy anything else.
In an early stage deal – ownership is implied for anyone that pumps money or ideas into it. Crypti and blockchain projects need to be aware of both domicile and who owns the IP that powers a blockchain. We aren’t talking about Zcash. We are talking about the future of finance.
Why Not Hold Value?
Let’s be real. This is all about ownership. Solv makes a lot of this much easier. One has to know that ownership makes a rich man.
Solv co-founder Ryan Chow had this to say,
“Our working experience with many DeFi projects has made us realize a lack of liquid assets and cost-effective financing solutions remains an unresolved issue for those teams. That’s why our team created Convertible Voucher as a new fundraising tool that leverages the projects’ native token. For project teams with relatively illiquid treasury, Convertible Vouchers is an optimal fundraising model with zero liquidation risk, low financing cost, and without having to sell the tokens. As a growing number of DAOs emerge in the market, we believe Convertible Vouchers will fulfill their fundraising needs and thus unlock a potentially trillion-dollar-size market in the DeFi space.”