Blockchain Technology Innovates the Private Sale Investment Industry

Private equity fundraising is essentially a financial transaction, but it involves a lot of complex and specialized work and collaboration. From an investment perspective, an investment usually goes through four stages: fundraising, investment, post-investment management, and exit, involving various tasks such as entity registration, investor management, financial management, and due diligence. From a financing perspective, startups also need to complete many complex tasks. These tasks often exceed the professional capabilities of the participants, requiring additional costs and more collaboration.

Online toolsets like AngelList abstract the complex tasks of private sale investment and financing into composable components and programs, allowing global users to efficiently participate in related business processes. This online approach greatly enhances efficiency, expands business boundaries, and simultaneously reduces costs.

However, the emergence of cryptocurrency has brought new challenges to private sale financing. Due to the inability to use traditional tools, most cryptocurrency financing still adopts simple management methods, such as using multi-signature wallets to manage assets, manual transfers, etc. This not only results in inefficiency but also brings numerous risks, such as funding risks, default risks, etc.

However, cryptocurrencies also bring new opportunities for private sale financing. Since the investment targets are all cryptocurrencies, we can view cryptocurrency financing as coin-to-coin transactions within the same accounting system. By utilizing blockchain technology characteristics such as smart contracts, programmable currency, and data availability, we can technically constrain both parties in a transaction, safeguard the rights and interests of all parties, and address many risks of traditional models.

For example, funds management contracts can be deployed to avoid fund misappropriation; investment agreement contracts can be deployed to ensure performance; the openness and data availability of Blockchain can be utilized to identify investment institutions. By putting various transaction links on-chain, we can build an on-chain investment and financing toolkit, achieving a truly decentralized and permissionless private sale investment and financing platform.

This on-chain transformation not only provides trustless transaction guarantees but also simplifies complex investment and financing processes, allowing ordinary users to easily complete professional tasks. It possesses all the advantages of being online, while technically ensuring transaction security and compliance issues. This represents a new paradigm shift brought by Blockchain technology to private sale investment and financing.

Many projects are currently promoting the vision of "on-chain venture capital". In the future, as the private sale investment and financing industry of cryptocurrencies continues to improve and standardize, these products that serve the investment and financing of cryptocurrencies are expected to shine.