How blockchain and cryptocurrencies are revolutionizing medical research funding
It is estimated that more than 95% of ICOs will fail. Just like apps, if the products don’t solve a problem or provide utility, they never succeed. It was with this in mind, the founders of HeartChain developed their business model. They did rigorous analysis to determine the best way to make blockchain technology and cryptocurrency productively solve a major medical industry problem.
Medical research funding is chronically ill
The funding process for medical research and bio-tech innovation has remained stagnant for decades. More disappointing is how difficult and frustrating it is for those trying to raise the funds. In a major misallocation of resources, those responsible for doing the research also have to raise their own funds.
Instead of spending all their time developing medical break-throughs or innovative new products, researchers have to trudge the streets chasing venture capitalists and government departments begging for essential funding. They waste an enormous amount of their time trying to source funds, rather than solving the important medical, health and bio-tech issues facing society.
There are a few funding possibilities under the current clumsy system — none are very suitable:
· Venture Capital
· Angel investors
· Government grants
· Donations and bequests
All these have drawbacks. Venture capital and angel investors take months to decide if they will participate. If they do get involved, they apply all sorts of restrictions and fees that do more to slow down the discovery process than speed it up. They also create time-wasting meetings and interfere in the research process, which distracts the researchers from their main function.
Government grants are a bureaucratic nightmare of form-filling and mundane compliance requirements that waste huge amounts of valuable research time. The grants also don’t provide any guarantee of sustained support beyond the initial grant. So the whole application process has to be repeated with no guarantee the researcher will get funding to continue.
Donations and bequests require lengthy and numerous approaches to potential donors. Obviously bequests are determined by timing, so they are a bonus rather than a regular funding method that can be relied upon.
Technology breathes new life into medical funding
These old-fashioned medical funding problems are about to change — radically. The combination of new technologies — blockchain, smart contracts and cryptocurrency — is revolutionising medical research funding forever.
Innovative start-up HeartChain, is the first to understand the possibilities. It has built a blockchain platform, whereby organisations and individuals can buy tokens to immediately fund early-stage medical research — www.heartchain.com
How it works
Individuals or organisations buy HeartChain Tokens (HCT) in HeartChain’s initial ICO and become “members” of the HeartChain community. This gives them access to provide funding support to each new research project identified by the HeartChain executives.
Members can then buy Innovation Product Tokens (IPT), at a discounted rate, in an ICO to fund specific research projects of their choice. Each ICO is explained in detail on the HeartChain platform where sponsors can learn everything they need to know before making a sponsorship decision.
The HeartChain management team consists of veteran industry executives with deep multidisciplinary experience in business development, medical technologies, and financial services. In addition, the team has a significant track record in building new enterprises, both private and public.
HeartChain executives will perform detailed, transparent, and quality due diligence that includes scientific, legal, intellectual property, market entry, and financial analysis, so that members can make truly well-informed sponsorship decisions.
The funds go directly to the research or bio-tech organisation as non-dilutive, off balance sheet finance. So they don’t affect shareholdings or need inclusion as a liability on the balance sheet. This makes accounting easier and provides two big benefits for the researchers:
- They can focus 100% on doing what they do best — making vital break-through discoveries to solve chronic illnesses and other medical issues.
- They can make discoveries sooner and get to market quicker, because they can put all their energy into developing solutions.
Doing well by doing good
The token owners (HeartChain members) benefit as well. They get ownership of products at the lower-cost development stage. Then, when the products come to market, the token owners have a number of options:
· use the product themselves
· donate the product to a patient in need
· return it to the developing company at its new retail value
There is potentially an upside for all involved — researchers, patients, members and society in general. So members do well by doing good.
Unique business model
No other company using blockchain and cryptocurrency technology offers anything like the HeartChain business model. The HCT are designed to give utility to members by providing them access to sponsor a range of innovation projects at discounted rates (via IPT), at the earliest stage of development. When products come to market the IPT can be redeemed in three different ways. The value can be consumed as financial, product usage or as goodwill.
This is a completely unique business model and one destined to shape the way medical and bio-tech research is funded forever. Members can choose a practical, philanthropic or financial outcome depending on what they prefer. HeartChain will launch ICOs every month. It is the first company to continually build its business via ICOs.
Like any investment in medical research, there are no guarantees the products will get to market. But the methodology, due diligence and expertise, plus the fact the researchers can focus 100% on doing research, rather than chasing funds, gives these innovation projects a much higher chance of success.
The HeartChain founders also believe the model will give the business a much better chance of success, certainly more potential than the ordinary ICOs available in the market. The pre-Token Generation Event (TGE) has commenced with friends and family given first option on the initial HCT. The HeartChain founders claim the early support is very positive. The public pre-sale will commence late in June 2018. Full details can be found in the whitepaper on the website — www.heartchain.com