In this Make Blockchain Work series, I discuss how blockchain technology could be best applied to financing and investment in nine chapters. It is from these reflections that we devised the world’s first marketplace for tokenized real-world assets, IdeaFeX. I prefer not to touch on ideological or debatable subjects, because a strong business model must be built on resources, including technologies, available now while thriving on agility to adapt to future developments. In this series, I will insert some of the posters that we have published on our social media platforms.
In the last chapter, I emphasized the importance of transparency for robust efficiency. Viewed as a whole, another crucial aspect for robustness is the level of standards at which services are provided. In this final chapter of the Make Blockchain Work series, I delve into what this could mean for financing and investment. As it transpires, these standards tie together all the different aspects that I have covered so far in this series. It thus serves as a conclusion.
1. Robust & efficient flexibility
In Chapter One, I discussed the importance of Flexibility for the success of blockchain-based financing and investment solutions. The key takeaway is that real-world assets that cannot be based on for financing and investment in an efficient and robust manner become viable with blockchain — the solution that we adopt at IdeaFeX. With this newfound possibility, many fundraisers and investors who otherwise could not find the ideal venue suddenly can leverage what they already have (fundraisers) or what they are already familiar with (investors) easily. At the same time, this flexibility does not compromise the integrity of each deal. Quite on the contrary, with some real-world assets the robustness of the deals can be improved by blockchain.
2. Robust & efficient access
In Chapter Two, I discussed the importance of Access, particularly in the democratization of funding / investment opportunities hitherto rare for disenfranchised startups and individuals. At IdeaFeX, we believe that this sits at the core of the spirit of blockchain. In terms of investment, our public auction method levels the playing field and makes it easy to win in a big project with a small budget. In terms of financing, the auction method enables multilateral deal flow that empowers fundraisers.
3. Robust & efficient navigation
In Chapter Three and Four, I explained the importance of Navigation when a broad range of asset classes are offered to users with diverse backgrounds. With an e-commerce-like experience, investors can obtain the information that they look for more easily. This makes for an experience that empowers decision-making. Ultimately, it benefits the fundraisers, too, for they can connect with their targets more readily.
4. Robust & efficient functional features
In Chapter Four, I delved into the values that Functional Features provide when flexibility and access are high. This is because flexibility and access could be chaotic and therefore inefficient and fragile if information disperse and discovery are poor. At IdeaFeX, we combine advantages of blockchain with an e-commerce experience. This solution facilitates the disperse and discovery of information on both sides.
5. Robust & efficient price discovery mechanism
In Chapter 5, I discussed in depth our unique Price Discovery Mechanism underpinned by our auction method. This method drastically improves the deal-making process and outcome while allowing for the highest degree of access. It also lowers the chances of funding failure and incorrect valuation (under- or over-valuation).
6. Robust & efficient agility
In Chapter 6, I discussed Agility in terms of business model integrations with financing and investment that we make possible at IdeaFeX. Essentially, the flexibility and access that we afford make it possible for firms to integrate financing and investment into their business model. A range of competitive advantages emerge as a result: protection against supply or demand uncertainty, increase in the speed to market, and strategic maneuverability are several examples.
7. Robust & efficient matching & resource allocation
In Chapter 7, I delved into Matching & Resource Allocation that extends the discussion about navigation and functional features. Here, the focus is the ease and quality of interactions between the two sides. At IdeaFeX, we view these as a critical link commonly missing in investment relationships. The knowledge and experience of enthusiastic investors as key success factors are too often overlooked. Essentially, our solution makes it possible for fundraisers to transform their investors into more active stakeholders in their ventures.
8. Robust & efficient transparency
In Chapter 8, I covered the importance of Transparency beyond transactions for blockchain solutions of financing and investment. At IdeaFeX, we look to diversity and navigability for the answer. They again go back to openness and functional features discussed earlier. Together, they ensure that the diversity is based on shared interests and that the interactions are organic.
These chapters collectively define the standards that we at IdeaFeX aim for.