We are currently in an age where technology is advancing exponentially and changing our lives for the better. It’s difficult to imagine what comes next, but in the last decade we’ve mainstreamed technology that allows us to transfer money from one bank account to another with the click of a button, have face-to-face interactions with each other from across the globe and even manage entire cities through automated programs that keep operations running smoothly and citizens happy. Advancements in technology efficiency make everything we do faster, cheaper and more transparent.
Fundraising is no exception. Using blockchain technology to fundraise makes the process easier than ever, reducing the amount of time money transfers take, cutting out middlemen that rack up costs and keeping everyone involved accountable through transparency. When businesses and startups use blockchain to fundraise, the experience is frictionless and direct.
Where traditional fundraising methods fall short
With traditional fundraising, entrepreneurs struggle to get the attention of investors, first vying for the approval of at least one gatekeeper before ever being considered for a meeting. Once they win face time with the investor, they can only provide speculative performance metrics as support for the future success of their business. Attorneys and accountants take their cuts before the entrepreneur ever sees a dime, and little is ever settled on the same day a decision is made. The process is painstaking, tedious and expensive.
Now, none of these factors are completely prohibitive to getting a business off the ground. We’ve been getting business done this way for at least the last hundred years. The world moves at an increasingly rapid pace, however, and it is time to adjust our practices to keep up. Blockchain provides solutions that bring fundraising into the 21st century, shortening the time it takes to get things done and drastically cutting the cost of doing business.
Blockchain-based fundraising
Just a couple of years ago, blockchain was something few understood; now, it is one of the hottest business technologies, and every sector is in the process of a major upgrade. Blockchain provides a solution for peer-to-peer interaction that makes all transactions secure and transparent. Its appeal for fundraising lies in its immutable, decentralized system of data storage.
When a block of data is formed, it’s stored across multiple nodes. All changes must be verified over a majority of nodes before they are documented. Transactions are only added and linked to the original block of information, never deleted. Every previous version remains stored on-chain, and because of blockchain’s infrastructure, transactions cannot be falsified.
The security that blockchain provides means that there’s no need to involve attorneys or accountants in every little transaction. Instead, individuals can draft smart contracts that keep things moving without an intermediary. When contract requirements are fulfilled, funds release automatically. Payments are settled nearly instantaneously, and every dime goes directly to the recipient.
In addition to facilitating a frictionless process, using blockchain for fundraising has intrinsically exponential value. Because cryptocurrency is a growing sector, using it to raise funds should add value to the currency, therefore making the venture even more profitable. The cyclical nature of growth in this domain presents exciting potential that has yet to be thoroughly explored.
Fundraising on Filmio
Filmio is the premier blockchain platform for fundraising within the entertainment industry. It facilitates contact between the best independent creators and investors without the hassle of working through gatekeepers, intermediaries and unnecessary formalities. Production and distribution can happen faster and smoother than ever before, leaving space for the kind of creative innovation that fans want to see.
As soon as creators load their content onto the Filmio platform, their intellectual property is automatically protected through timestamped documentation on the blockchain. Once it is verified, creators have access to the tools necessary to build an audience and start building attention for their project. The more creators offer fans, the more engagement they will garner, earning points in their GO Score, the main performance metric on the platform. Based on fan feedback, creators can adjust their material, making the kinds of improvements that give audiences a project to truly look forward to.
As they build both their content and an audience, creators earn funds through selling presale tickets to the project’s release and receiving fan sponsorships. Once the GO Score reaches an algorithmic threshold, the project gets entered into the Greenlight Competition where it’s matched with favorably-modeled investors. The investors have access to all the performance metrics stored right on-chain, so they never need to invest in a project blindly.
With Filmio, everyone on the platform gets to take part in the creative process like never before. Fans have their voices heard as they participate in steering the direction of their favorite projects. Creators have the opportunity to use fan feedback to finely sculpt a project for optimal reception, bolstering its success while gaining direct contact with investors. Investors can look for the kinds of projects that spark their interests, investing with greater confidence after looking at meaningful data that support potential for profit. And everything happens with the kind of lightning speed that only blockchain can facilitate. Filmio is the entertainment industry’s upgrade into the 21st century.
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