“Everyone wants to fund promising companies. DropDeck wants to remove the barriers that keep average funders away from the greatest opportunities,” said the CEO Alon Vo, “There are a lot of existing platforms for you to do that, but we want to build your favorite one. DropDeck is designed to be the one-stop shop that changes the way you fund companies worldwide.” The funding process and exiting mechanism are often neither safe nor rewarding enough to funders. Not just coin offering platforms, but funding platforms in general (for startup investment and SME lending) suffer from the same deficiencies. DropDeck seeks to fix this problem.
DropDeck prioritizes inclusion and decentralizes the funding process to the extreme. Anyone can participate in funding, searching for promising companies, evaluating people, performing due diligence, and enforcing repayment. A.I. algorithms are utilized to rate and rank all participants. The consensus mechanism makes sure only the best-performing ones are eligible for participation and reward. Token rewards and smart contracts incentivize all participants to do their best to fund companies and reward funders.
In the IBM Watson AI XPRIZE competition, DropDeck earned recognition and support from world-class AI experts and made findings in complementing AI training with blockchain features.
DropDeck is a funding platform that runs on the Ethereum blockchain because it requires this blockchain’s features such as smart contracts, payment, consensus mechanism and its own digital token named DDD (Decentralized DropDeck). DropDeck is shaping the most innovative solution to address all existing issues in cross-border business funding for startups and SMEs, by issuing digital tokens and deploying smart contracts to incentivize all token holders to collaborate with each other and complement the A.I. development. The outcomes are 1) fundraising companies are as accurately scored and ranked as possible so that funders can put their money to optimal use, and 2) all participants in the ecosystem are financially incentivized to help funders get rewarded so that funders can keep funding and attract more funders to join the ecosystem.
Companies from all geographies can submit information to the platform according to standardized funder-centric formats, or local agents called Hunters can help do so. Funders screen fundraising companies based on scores and can select local agents called Delegates in the geography of the interested company to assist in further due diligence. After conducting full due diligence, the funders are ready to make the loan. The Delegate is required to enter into a legal arrangement with the funded company in order to enforce the repayment.
Funders then make a payment in DDD to a smart contract. This smart contract involves the funders, the funded company, and the Delegate so that the Delegate only gets paid if the funded company pays back. The Delegate receives either a percentage of the repayment amount or a fixed amount held in escrow by the smart contract. The loan can be paid back in the form of simple amortization with regular payments, or via royalties or with other amortization schedules for companies who are not generating consistent cash flow yet. The DropDeck reputation system encourages funded companies to pay back in order to attract further funding in the future and encourages Delegates to protect the funders’ interests in order to attract more clients.
The Decentralized DropDeck Token (DDD ) will be issued and distributed to serve as the ultimate reward for all participants in the funding value chain (Delegates, Hunters, Evaluators, etc.). Since DDD’s value reflects the overall success of funders and fundraising companies on DropDeck, every participant must collaborate in the best interests of each other (e.g. evaluate companies accurately, enforce repayment) and of DropDeck (e.g. contribute data to make scoring algorithms smarter) in order to increase the value of their rewards.
The market for funding coin offerings, startups, and SMEs is over $300 billion. As capital flows into the DropDeck economy, the token value will increase exponentially. Up to half of the revenue in tokens will be burned, increasing the token value by depleting the total supply. Also, the team and advisors have been working with 15 exchanges to guarantee token liquidity.
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More information can also be found on the whitepaper and official website.