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How This Blockchain Startup is Transforming the Venture Capital Model

The popularity of blockchain technology and the number of startups based on it has exploded over the past few years – and it’s showing no signs of slowing down.

It’s disrupting absolutely everything in its path. It’s even turning the traditional Venture Capital Model on its head.

The Fall of the Traditional Venture Capital Model

As the number of startups begins to increase after years of stagnation, it turns out that the traditional funding models are going in the complete opposite direction.

The number of Venture Capital firms is shrinking – and fast. In fact, the number has decreased by a massive 20% in the past 10 years alone.

The number of funds has seen an even sharper decline. It has dropped from 1,764 in 2005 to 1,224 in 2015 – a whopping 30% decrease.

Cryptocurrency

Stuart Miles/Shutterstock.com

The Rise of Initial Coin Offerings

As the traditional Venture Capital model continues to decline, a new method of fundraising is quickly taking its place.

This method is called Initial Coin Offerings (ICOs).

ICOs are relatively new but have since become enormously popular with investors. Despite the recent controversy over the lack of regulations and fears that they are ‘attracting the wrong people,’ they have gained massive traction over the past couple of years.

In 2017 alone, ICOs raised more than $1.8 billion USD. One recent ICO even raised over $35M USD in under 30 seconds.

Starbase is One of the Platforms Leading the Blockchain Transformation

Starbase is one of the platforms that is leveraging the power of the blockchain technology to help users fund their startups. The platform is based on the Ethereum blockchain, making it very reliable and secure, and was developed with both collaborators and innovators in mind to ensure maximum functionality.

It allows innovators to share long-term incentives with their team members; to fundraise globally by utilizing Bitcoin, Ethereum, and other major cryptocurrencies, and also to connect and engage with engineers, marketers, and other professionals from all over the globe to utilize their services in exchange for tokens.

Starbase features its own STAR Token. This will be the lead token used within the Starbase platform as the base currency for ICO investments. It can be purchased directly from the platform and used as a currency, or it can be transferred from one user to another as a reward. Starbase Token holders will be rewarded quarterly.

The Starbase platform also allows users to accelerate projects by rewarding contributions to projects that they find interesting. Hard work pays off on this platform, and those who work the hardest will reap the greatest rewards.

Projects and their members and assets will also have full transparency. This can be publicly verified on the blockchain, which enhances liquidity for tokens trading on the exchanges.

On top of all that, Starbase also serves as an interface to allow users to keep track of their current projects and follow their performance.

For more information on how Starbase works, you can check out their white paper.

Crowdfunding of the Future

The concept of Starbase is quite similar to that of other large global platforms, such as Kickstarter.

However, whilst Kickstarter is more suited towards product-based projects, Starbase is designed especially to support innovative global projects.

Instead of receiving a simple product or a letter of thanks from the creator as is the case with Kickstarter, backers have a larger variety of benefits they can choose from.

These include:

  • Price change at markets
  • A reward from the issuer
  • Rights to receive the service or product

The STAR Token crowdsale will run from the 9th November at 15:00 UTC until the 24th November 15:00 UTC. Users will be able to buy tokens in exchange for Ether (ETH). The aim of this sale is to raise $2,000,000 USD.

You can find out more about Starbase’s crowdsale here.

This is only the beginning, and Starbase still has a long way to go before they reach success.

As it stands, the number of ICOs shows no signs of slowing down.

In a few years, it’s likely that blockchain startups like Starbase could even overtake the traditional Venture Capital model altogether.

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