With investing, risk and uncertainty are seen as markers of higher potential rewards. However, the recent collapse of the Silicon Valley Bank (SVB) and the 2008 financial crisis are stark reminders of the fragile nature of finance. At the same time, regulatory pressure has created the need for innovative solutions to usher in new growth, while also creating seamless transparency, security, and inclusivity. Thus alternative types of investing and fundraising are emerging that will bring with them positive social benefits.
With a mission to democratize access to investing and funding, and unlock new means of raising capital for businesses, DigiFunds was founded in 2022. Because traditional capital fundraising has its limitations, the DigiFunds platform is here to provide a new source of funding for businesses founded on transparency and accessibility.
Moving away from centralized financial infrastructure, such as banks, private venture capital firms, and investors, which involve a chain of entities all charging for their services, blockchain crowdfunding offers a decentralized and democratic way to raise capital.
Fairness: building trust in investing while promoting financial and social inclusion
The DigiFunds platform offers a unique investment model built on blockchain technology that allows companies and individuals to raise capital through digital assets, backed by real investments. The platform enables investors and companies alike to hold all documents securely online, manage their assets directly, and track funding progress.
With asset-backed tokens, individuals from any walk of life — from seasoned investors to newcomers to digital assets — can invest in a promising venture with tangible currency, convert it into digital tokens, and invest in the business of their choice. Making it available to all is the first step towards democratizing capital markets.
Clarity: vastly improved privacy and transparency
The DigiFunds solution utilizes blockchain and Web3 technology to keep assets secure.DigiFunds is built on Web3 technology to create a more secure investment platform. This ensures a greater openness in investment through shared ownership, enhanced security measures, and decentralization. DigiFunds applies blockchain technology and advanced encryption to provide greater security for your files, documents, and information, protecting investors, companies, and the wider economy.
Blockchain technology allows for the building of rules into money. This new mechanism opens new doors for fair and transparent growth. Using encoded business rules on the blockchain, digital assets follow the rules of collaboration. Cell encryption ensures that all files and assets on the platform are only available to the assigned parties. And most importantly, the encryption keys are not stored in a predictable pattern.
Flow: creating an efficient and frictionless path to capital fundraising
The barriers to venture capital fundraising can have truly detrimental effects on businesses that limit growth and scale when it matters.
Unlike traditional capital fundraising, which comes with associated costs and funding ceilings that can disadvantage projects, DigiFunds creates a platform where it is the people that make investment decisions. If an idea gains traction and people like it, they will support it, and things will get built faster. An efficient marketplace provides many benefits for stakeholders and reduces the cost of operation, therefore increasing margins for investors and fundraisers.
The network verification system inherent in blockchain technology is known as proof of work (PoW). PoW enables the creation of decentralized marketplaces, allowing individuals and entities to trade directly without intermediaries. This eliminates the need for a centralized authority, such as a bank, financial institution, or government regulatory agency, which can often create barriers to entry and restrict access to financial markets.
With a verified digital platform, DigiFunds helps investors and fundraisers avoid cumbersome and time-costly legal processes required for obtaining a bank loan, so they can start raising funds on a much quicker time scale. DigiFunds operate a cutting-edge financial system that is fully compliant with all laws and policies and take care of the legal processes so that businesses can focus on what really matters: growth.
Find out more about the DigiFunds platform here.