Title: Redefining early stage funding: exchange traded smart contracts

Authors: Nipun Agarwal

Addresses: Department of Political Economy, University of Sydney, NSW 2000, Australia

Abstract: An early stage funding platform using cryptocurrency smart contracts can potentially provide an equity and debt capital raising platform for new ventures compared to crowdfunding, initial coin offerings (ICOs) and seed funding. The existing capital raising methods are less transparent, have limited depth of funding and less diversification. Utilising a cryptocurrency smart contract-based early stage funding platform will allow new ventures to obtain a staged funding environment, starting from seed funding. Each stage of funding can be represented by a smart contract that is aligned to a formal standardised legally binding contract between the venture and investors through the platform. Competition for funds and a transparent smart contract-based platform should allow free markets to price investments in the new venture in a more efficient fashion. Additionally, such a platform should provide more funding opportunities to new ventures that weren't available prior.

Keywords: smart contracts; cryptocurrency; savings.

DOI: 10.1504/IJBC.2020.111562

International Journal of Blockchains and Cryptocurrencies, 2020 Vol.1 No.3, pp.225 - 235

Received: 01 Nov 2019
Accepted: 31 Mar 2020
Published online: 01 Dec 2020 *

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