How The Dacxi Chain Solves The Problem Of Due Diligence In Crowdfunding

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The truth is, most crowdfunded investments are a bit of a gamble. You might like the project, and its objectives might seem worthy. But beyond the promotional material the founders provide, it’s virtually impossible to do any meaningful due diligence. And is ‘gut feeling’ really the best way to assess a project’s potential financial performance? 

While there are the odd founders who offer sufficient financial details and forecasts to allow a savvy investor to do the numbers, – most don’t. This essentially turns the average crowdfunding offer into a ‘take it or leave it’ deal, with little detail to support it. And that means people who care about what happens to their money are usually inclined to leave it.

All this does nothing at all to help the crisis in Early Stage funding that’s afflicting new tech projects all over the world.

Dacxi estimates that every year, around one million tech projects that warrant Early Stage funding are missing out on the money they need to succeed. And in most cases, if they do attract funding, it’s too little too late, or comes with restrictive conditions that make an agile approach to growth difficult.

The Dacxi Chain tokenized global crowdfunding system could change that. This revolutionary system will frictionlessly connect investors with entrepreneurs all over the world. And in the process, it will give investors the opportunity to do proper due diligence before committing their money to a project.

Crowdfunding is a $10 billion dollar industry with trillion-dollar potential.

IBM estimates that the global equity crowdfunding market should be worth a trillion dollars by 2030. So why is it only worth a tiny fraction of that today – just $10 billion globally? Dacxi believes that the inability to do meaningful due diligence is one of the biggest impediments to the market reaching that magic trillion-dollar mark. 

The problem with the current crowdfunding model

Due diligence is a crucial step for any investor. The primary objective is to mitigate risk by developing an accurate understanding of a company and its business, as well as determining its suitability for the investor’s portfolio.

Currently, due diligence in crowdfunding is based mainly on metrics that are qualitative (perception) rather than quantitative (hard financial data). 

Potential crowd investors are asked to make their decision based on factors like: 

1. The project’s website
2. Social media profiles
3. Google
4. The CVs of the founders
5. Media reports
6. Product trials

While all that might seem like plenty of information, it’s not actually much use to a disciplined and financially aware investor. They say ‘show me the money.’ And if the founders don’t make that numerical data available, smart investors just walk away, leaving the few who work on their gut feeling to fund the deal. It’s a mindset that leaves crowdfunding less like a business, and more like a hobby.

To achieve the massive growth that IBM predicts, the crowdfunding sector requires a fundamental step change. It needs people with money, a deep understanding of the projects on offer, and financial acumen. And it needs them to enter the market on a truly global scale.

That is exactly what the Dacxi Chain’s tokenized crowdfunding system will do.

Financially rigorous due diligence is built into the Dacxi Chain

The Dacxi Chain will employ a proprietary due diligence system. Forensically tested by the Dacxi team, the system will give investors confidence that every investment opportunity’s financial basis is sound.

This process will eliminate the current ‘finger in the wind’ style of due diligence, and replace it with genuine financial analysis and conservative performance forecasting. Investors on the Dacxi Chain will be able to make informed decisions based on hard numerical data – as well as being able to assess the qualitative factors, too.

The Dacxi Chain tokenized crowdfunding solution will free crowdfunding from its limitations, and make it attractive to business-like small-scale investors. This could stimulate a flood of investment capital into the crowdfunding market, and help alleviate the Early Stage investment crisis afflicting entrepreneurs all over the world. 

With a trillion dollars in investor funding circulating, viable new tech projects everywhere from Sri Lanka to Sao Paulo will get the funding they need to succeed. And in turn, billions of people will benefit from their innovative genius.

That’s the vision behind the Dacxi Chain tokenized global crowdfunding system. If we change crowdfunding, we can change the world.

For the latest information on Dacxi Coin and the Dacxi Chain, visit dacxicoin.io. You can download the Lightpaper, and join the Dacxi Coin telegram community. For media enquiries, please contact pr@dacxi.com. You can also check out the latest Benzinga Dacxi Review.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.