Challenges faced by the crowdfunding industry

Fraud and scams
Fraud and scams

Lack of transparency and control in fundraising procedures often leave investors getting de facto incomplete or even scam projects — not the ones they signed up for, and some are sophisticated scams — with little scope for redress.

Additional costs
Additional costs

Intermediaries add costs to fundraising, and services like Crowdfund Mafia and Agency 2.0 act as intermediaries-to- intermediaries, consulting on a percentage basis to select platforms.

Rigid funding strategies
Rigid funding strategies

Current crowdfunding tools are inflexible; stakeholders have few options for managing different fund volumes without risking to deal with fraud and forced to reject particular funding strategies.

High fees
High fees

As intermediaries continue standing between stakeholders and fundraisers, investments become more costly than they could be. Fundly reports that initial fees reach $8 on particular fundraising platforms, with even more fees to pay per donation.

Unsafe communication
Unsafe communication

Forced to reach users through email, chats, and other standard yet vulnerable web-based communication tools, project managers cannot establish secure communication channels with stakeholders and ensure information doesn't reach bad actors.

Lack of funding opportunities
Lack of funding opportunities

Traditional funding means restrict investors in their possibilities; in such industries as, for example, mineral production, investors have to deal with credit card-backed slow and unreliable payments and likely opt out of such markets.

DAO Space

DAO Space: a blockchain ecosystem for investors and fundraisers

DAO Space is a blockchain platform that connects investors and fundraisers in a transparent, distributed, and cryptographically secure ecosystem for decentralized autonomous organizations. It introduces fast, theft-proof payments, automatic distribution of digital assets along with KYC and AML regulatory compliance.

Learn more

Blockchain solutions for crowdfunding from Aetsoft

Immutable campaign rules

Store all campaign information — phase description, goals, milestones, marketing materials, legal documents — on a forgery-proof, securely accessible distributed ledger where investors can access it to verify campaign process and requirement compliance.

Decentralized fundraising

Make fundraising processes transparent and KYC-compliant; smart contracts will issue money for project owners only when required milestones are reached. Stakeholders, in turn, could vote for the legality of each project in absolute democracy (through consensus algorithms).

Lowered operational costs

Thanks to smart contracts, you can automate operations and eliminate third parties to cut extra costs for fundraisers and eventually let them invest only the sum they initially planned to invest.

Private communication

Talk to communities and make announcements by sending private messages encrypted with public keys (visible to senders and recipients only).

Flexible fund management

Access a range of new funding strategies, like scheduled payments or regular payouts, by managing revenues safe and transparent with blockchain-enabled escrow, messaging, deposit, withdrawal of digital assets, and other tools.

More funding options

Digital assets based on the blockchain enable previously impossible funding and investment methods, including via tokenization of real-world assets and rapid, low-cost cross-border transactions.

Discuss a project

Tell us about your blockchain crowdfunding project, and we will get back to you with a free consultation.

Get expert advice

Blockchain applications in crowdfunding

Low-income regions

Use case 1. Wealth creation for low-income regions

Currently

Most low-income regions, particularly those in Africa, don’t have access to credit systems, and their residents don’t have bank accounts. Lack of proper financing leaves them in dire straits.

With blockchain

Blockchain-enabled digital assets remove crowdfunding barriers between war-torn, impoverished areas and modern means of financing with direct, p2p money transfers (of course, internet connection is required).

improve processes with Blockchain
Fund distribution

Use case 2. More rational fund distribution

Currently

With an excessive number of crowdfunding consulting firms and platforms, each requiring fees, the ultimately raised amount is far less than the one you initially planned to collect.

With blockchain

Smart contracts exclude middlemen, making such services as recommending the appropriate crowdfunding platform and fundraising itself autonomous and less pricey.

improve processes with Blockchain
Campaign transparency

Use case 3. Establishing campaign transparency

Currently

Crowdfunding campaigns remain shady procedures, where insufficient record-keeping makes room for fraud during fundraising and failed donors’ expectations as a result.

With blockchain

Blockchain-enabled ledger keeps a comprehensive and permanent record of all fundraising activities throughout the entire campaign, ensuring accurate and consistent record keeping.

improve processes with Blockchain

Explore our solutions for:

IoT
Supply chain
Healthcare
Real estate
Agriculture
Advertising
Automotive
Logistics
Legal
Insurance
Cannabis
Fintech
Education
Cybersecurity
Crowdfunding
HR
Retail
Charity
Pharma
Travel
Energy
KYC
Loyalty programs
Voting systems

Have a project idea? Schedule a call with us!

Shoot us an email with your request, and we will contact you within one business day.