How blockchain will help startups to overcome the financial hurdle
Today we live in a world that gives us unique opportunity to create our own jobs. Technology, enabling ecosystems and the growing amount of knowledge foster entrepreneurship like never before. Traditional industries are disrupted, traditional jobs are becoming obsolete. Emerging creative class is increasingly turning to entrepreneurship.
We believe the future is going to be shaped by entrepreneurship. As market cycles continue to get shorter, the speed of innovation makes it difficult for large corporations to compete with the more agile small businesses.
Startups need readily available capital that is as agile as this new market reality. Bank transfers don’t quite cut it, traditional exchanges are walled gardens, and there is no good way for small businesses to raise money publicly without getting the short end of the stick in some regard. The world’s current financial system is outdated and holds everyone back.
Impossible Labs teamed up with Braveno — a blockchain-based financial platform that will change the way we run businesses. The underlying technology, blockchain, is a distributed database of chained records that replaces middlemen and automates a lot of bureaucratic hurdle.
What does it mean for us?
- Entrepreneurs can receive funding faster. Traditional funding deals can take months and even years to conclude. With blockchain it can take as little as 5 minutes.
- Most procedures will be simplified. Starting a legal entity, issuing shares, going public — all these take energy and time. For example, to issue stock, most entrepreneurs now need a lawyer, sometimes an accountant, and a bank for transactions. With blockchain they can create digital share certificates to manage their cap table automatically.
- All transactions are transparent and accountable. All records in blockchain are connected to the one before and the one after it, yielding a traceable history of every transaction.
Blockchain will empower entrepreneurs, and will help us build a new, inclusive economy free from excessive regulation and limitations. It is a truly disruptive technology able to build a better, fairer version of our society.
Read more about our work with Braveno here.