Fabric Ventures
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Fabric Ventures

Enabling on chain business with Nilos

Fabric Ventures x Nilos

Over the past few years we’ve seen spectacular growth in the use of smart contracts and NFT’s to conduct business, sell goods & services and provide users & communities with new value.

Major brands like Nike, Tiffany and Adidas have made forays into web3 in the past year by launching NFT collections that have generated over $200m in revenues, while paving the way for entirely new audiences and user experiences. Communities are extremely valuable for brands, and in web3 we’ve seen a completely new approach to how brands interact with their audience, giving them a voice and ownership in IP generated.

Looking beyond the brands active in web3, there’s an entire economy being built on-chain with financial products & services, art, marketplaces, data analytics & user intelligence, new forms of grant programs to support open source projects just to name a few.

It’s easier than ever to spin up a new dApp, DAO or service, global from day 1, built on digitally native payment rails accessible from anywhere in the world. From small hackathon projects looking for funding, community projects selling NFT’s, tokenizing music IP, to charities and social causes, global payment has become easier than ever to attract. Those that have made an on-chain payment before can attest that making transactions is seamless — anyone with a wallet can accept payments without banks, payment apps, credit card information & approval.

As a business or individual, once you have a wallet setup, it’s easy to send basic payments internationally using the blockchain payment rails, all you need is a wallet address. It’s everything that comes afterwards that’s extremely difficult. Anything to do with managing income (treasuries), storing currencies safely, exchanging these to stable currencies, using the right chain from acceptance to withdrawal, using the right exchange to offramp and doing this in a legally compliant manner with the right documentation is extremely difficult and a fragmented manual process right now. Even once off-ramped, regulators, accountants and tax authorities struggle to understand regular crypto transactions and lack the experience needed to decrypt the new “language” of blockchain transactions. Most services today service larger clients

Along comes Nilos

Nilos is a platform for businesses managing revenues and payments on chain in a compliant and secure way. Businesses can sign up, link existing NFT collections or wallet addresses generating revenues and create automations, such as royalty pay-outs for a collections artist, or auto convert assets to stablecoins to hedge against currency risk. Despite operating on-chain, companies still require connections to banks to complete invoice payments or paying out salaries: Nilos allows its users to automate monthly pay-outs to bank accounts. Beyond the management of assets, Nilos helps its users label and sort transactions from various income sources, making transactions digestible and exportable for accounting purposes.

As the number of DAO’s, services and b2b on-chain payments grows, we believe Nilos will become an increasingly crucial piece of infrastructure driving web3 business adoption for several reasons:

  • Payments are digitally native and instantly global using blockchain networks — conducting international payments cheaper and with less friction than traditional payment rails
  • Compliance, kyc and anti money requirements are coming to web3. While accounting and taxes were mostly overlooked in web3 previously, it’s clear that as web3 grows, so will the requirement to declare incomes and report earnings.
  • Programmable payment flows will enable more flexibility and complexity in payments as well as lowering the barriers for SMEs to utilize financial products for reducing costs, hedging risks and maximizing potential of underutilized assets.

By mastering both traditional and web3 payments, Nilos helps businesses and protocols seamlessly manage on chain revenues and fiat operations in a compliant manner.

If you’re a business looking to manage and off ramp digital assets compliantly, request a demo here. If you’re interested in joining the Nilos team, check out their open roles!

→ Learn more about Nilos’ thesis here.

→ Stay up to date on Twitter.

We back the boldest technologists & communities at the earliest stages, supporting them throughout their journey and becoming active participants within the networks they are building.

To learn more about Fabric Ventures, you can visit our website, follow us on Twitter and read our investment thesis.

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Fabric Ventures

Fabric Ventures

1.7K Followers

Fabric Ventures backs the founders of the Open Economy. Collectively, been investing in builders, businesses, and networks from inception to scaling since 2012.