Since, the launch of cryptocurrency and especially the advent of blockchain technology, the method of trading and the field of currency has revolutionized in ways that were considered impossible a few years ago. The doors that digital currency has opened are so vast that trading currency has become a task of as easy as it could be. Crowdnext works on the same approach and wants to utilize in a way that cryptocurrency becomes available to all as a means of investing in different companies.
Crowdnext vision is to develop Blockchain technologies to disrupt the venture capital Sector with the first really liquid and comprehensive VC fund, issuing digital securities tokens. Crowdnext tokens will be tradable in major crypto exchanges.
Although the Venture Capital industry is conventional and understood to most investors, the cryptocurrency or Blockchain sector is new and unknown. However, investors will likely be conscious that, as an emerging asset class, Blockchain is experiencing an exponential growth stage. It currently meets at a division position, at a key stage between Innovation and Early Adoption. The sector consequently presents unique opportunities for forward-thinking investors.
Crowdnext will issue tokens to investors, which will serve as digital securities. Investors can purchase tokens with Bitcoin, Ethers or another Altcoin.
The tokens entitle their holders to two specific rights:
1. You can trade Crowdnext tokens.
2. When a portfolio company delivers an exit, you sell Crowdnext tokens back to the fund for your pro-rata portion of the exit cash and those tokens are eliminated (burned in the Blockchain) increasing the economic interest in the fund of the remaining tokens.
This means whenever there is an exit in one of our portfolio companies, the fund will buy back the relative portion of tokens directly from every single token holder, to return the full net revenues to them.
Crowdnext strives to make investing in big companies available to all. Its liquidity method shall be able to comprehensively provide the investors with the ability to invest in a company even if they do not own big empires or are not known in the trading world. It will also allow them to be flexible in their investment because some small startups require a big-time span of at least 5-6 years before they could start returning the investors with what they paid for and they start earning from their long-gone investment. In this case scenario, the investors’ money is locked away for big period and they have to wait for a long time but with the help of crownext’s vision, the investor will not have to wait for long before he starts earning from what he invested making it an easy and a very efficient offer for the beginners.
Also, crownext’s enable the investors to have leverage over the money they want to invest. They do not need to provide securities or anything. It’s all up to them whether how much would they like to invest whether its $10 or $1000.
The concept of decentralization relies upon the basic utility of accountability. With the help of blockchain technology, every investor shall be able to monitor how their company is growing and on what roots and where their money was used and how it could benefit them. In short, everyone will be able to keep a record of what was happening in the company and what wasn’t. This way, nobody shall have any kind of reservations regarding company’s credibility.
Crowdnext will also allow its investors to trade the tokens at various crypto exchanges like Bitcoin. That means there is more use of the token that they have been provided with. Crowdnext’s goal is to be as transparent as possible. It also focuses on to how returns will happen and return as much money as possible to token holders without impacting the open market price of the tokens. All funds received by Crowdnext will be used for the sole purpose of buying back tokens from all existing token holders in a prorated way. All tokens acquired will be destroyed (burned in the Blockchain) therefore increasing the economic interest in the fund of the remaining token holders as well as their value. Specifically, they will apply the following procedure which will be coded into the smart contract of the tokens.