According to Statistica more than $16.2 million US was raised with the help of crowdfunding platforms in 2014. Crowdfunding is a relatively new technique that is used to gather funds from interested investors.
In the past, entrepreneurs had to rely on banks, people they know or venture capitalists to raise money. All of these were quite difficult to tackle, and difficult deals had to be made, where the entrepreneurs were not always on the good side. Entrepreneurs had to accept their terms because frankly, they had no choice.
But, times change and with the wider adoption of the internet, individuals, and normal people acting as investors can directly link up with developers and entrepreneurs, and invest in their projects.
Fund-raising is an important step for any innovation because most entrepreneurs can come up with amazing ideas but lack the financial backing to go ahead with the development of those ideas. Platforms such as Kickstarter and Indiegogo are nice setups that allow communication between investors and entrepreneurs. However, they charge excessive fees while not providing much support for the entrepreneur.
For perspective, Kickstarter charges 5% of the amount raised by developers and entrepreneurs, and they also charge per transaction. This combines to become a hefty income that Kickstarter collects from every project. This is a significant amount of investment that the developers never get to see.
Now, blockchain-based crowdfunding platforms such as Acorn wants to raise the crowdfunding market to the next level. By using blockchain, Acorn will provide transparency, communication, and most of all, cheaper transactions and crowdfunding opportunities for developers and entrepreneurs.
Acorn wants to give everyone a chance to work on their ideas, and since there are no vested interests, everyone can market their ideas, as long as their ideas are legal. Since the whole platform will be based on a blockchain, the platform will be free from exorbitant fees that usually hinder the fundraising process for developers and entrepreneurs.
By not charging any fees for using their platform, Acorn will provide everyone with an equal opportunity to use their platform to market their ideas. Acorn will only charge a minute transaction fee, just like the gas price of Ethereum transactions.
Moreover, Acorn will provide some support to developers by helping them in marketing through APIs and algorithms. This will increase the odds of their projects being recognized by investors, and consequently raising funds. This will further reduce the load on the team and give them more room to focus on their products and how to make them successful.
By introducing blockchain in the crowdfunding sphere, Acorn will make the process much more transparent. Investors will have a full view of developers, project progress, and their timeline. This will let investors make more informed decisions about investing in different projects.
There will be an ethics board that will evaluate the projects and determine whether they should be on the platform on or not. This will ensure that no illegal or unethical projects get published on the platform. If the ethical board cannot decide on the nature of the project, then a project may be put forward to a community vote.
The platform will provide assistance to the entrepreneurs in the form of various value-added services. These services will be provided in return for extra fees and following are some of the services that Acorn platform will provide:
- Legal assistance
- Sourcing and manufacturing
- Technical help, such as web, mobile or blockchain application development
- Accounting & Taxes
The Acorn marketplace will comprise of a crowdfunding hub, a secondary marketplace where businesses can sell post-crowdfunding goods and services, a point-of-sale payments application, and an Acorn token (OAK) that will facilitate all the transactions occurring on the platform, and forming a link between the entrepreneurs and the business backers.
Acorn conducted a pre-sale between Jan – Feb 2018 which was sold out, with Acorn collecting more than their soft cap. The main token sale will start on May 26th and end on June 24th. The platform wants to sell 25,000,000 OAK tokens in its main sale, the tokens will be tradeable after the ICO has finalized.
The Acorn platform will be backed by OAK token, which is an ERC – 20 token, based on Ethereum Blockchain. The platform will only accept contributions in Ethereum, and only a finite number of tokens will be generated during the ICO, after which no more tokens will be generated.
The token will have a wide range of uses on the Acorn platform and investors and entrepreneurs will use the OAK token to invest and collect payments respectively. The Acorn marketplace will allow users to purchase goods and services with the help of the token.
Acorn also expects that users will be able to make payments through point-of-sale transactions using the OAK payment. This will be accomplished through an Acorn local mobile payment application.
The following image represents the token allocation of Acorn platform:
The following are some of the main points of the impending ICO sale:
Protocol: ERC – 20
Dates: May 26 – June 24
Hard Cap: $35,000,000
Exchange Rate: 1 OAK = $1.4
The following are the main team members of the Acorn projects:
- Moritz Kurtz: Co-founder, CEO
- Peter-Andreas Kurtz: Co-founder, CFO
- Ed Earle: CTO
- Edward Lobbett: COO
The following are the main advisors to the project:
- David Ives: Crowdfunding and Technical Advisor
- Ian Scarffe: Blockchain Advisor
- Theodosis Mourouzis: Blockchain Advisor
- Kyriacos Pavlou: Blockchain Advisor
For more info
To read more about the Acorn project and how they plan on changing the crowdfunding market, you can assess the following links:
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Source: Crypto Potato