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Bloomio: Startups’ Crowdfunding Using Blockchain 2020

by Javier Nieto León
Bloomio Startups' Crowdfunding Using Blockchain
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Bloomio, is a Swiss based digital investment platform for Startups’ crowdfunding using blockchain

About Bloomio.

Bloomio was funded in July 2017 to allow easy access for all investors (from $10) to alternative assets trading and liquid exit from traditionally illiquid financial products; the project has now become a cutting-edge startup with a team of 17 employees, 2 board advisors and 3 operational entities. The company has successfully raised 2.2 M CHF so far.

The problems solved by Bloomio.

Bloomio’ vision is to disrupt the funding model for a startup by enabling individual investors to tap venture capital business with a small investment amount of just around hundred dollars. A large number of angel investors mainly focus on large size deals of more than $100K, leaving small room for individual investors to enter the early stage startup market.

We conducted a research with IMD business school to and we identify that 57% percent of the audience (over 700 respondents) would like to invest in startups but only 9% actually did. Key reasons behind this are the following:

  • They need easy access. Lack of awareness as they ignore that with equity crowdfunding platform is possible to invest in startups with just few dollars.
  • Addressing the risk with a balance portfolio. For many investors the risk of investing in startup is too high and they need a balanced portfolio.
  • Clear and reliable information. Lack of trust is a crucial aspect hampering a full access to retail VC investment. Bloomio developed a transparent and solid due diligence process to allow each individual investor to have similar information that professional VC.

The solution.

Bloomio enables an effective way to raise money for ideas with a unique feature for investors to exit their investments through trading of tokens, representing startup shares.

The nominee structure that Bloomio adopted brings the flexibility needed to make the system efficient and liquid. Irrelevant on the number of investors, on the cap table of the funded company will only appear Bloomio, massively reducing complexity for startups. This approach is also an enabler of the liquidity that VC industry needs. Trading the tokens, representing the company shares, doesn’t require an update on the company cap table as the trade will relate to the portion of equity owned by Bloomio on the cap table.

Bloomio’s Customers.

The two sided of the Bloomio ecosystem are startups and investors.

Despite many platforms are present in the equity crowdfunding space, still both investors and startups are struggling to see their needs matched by the current offer.

Investors needs are mainly related to:

  • Illiquidity
  • Lack of capital
  • Lack of information
  • Regulatory barriers

Bloomio target audience is structured as following: Main: retail investors who can tap into startup investment from just 10 CHF Secondary: -Wealthy middle class ready to invest between 5 K and 50 K CHF per campaign -Family offices: large tickets up to several millions -Business Angels: Investing between 50K and 200K per campaign – Institutional investors: only large tickets,

Bloomio also offers investment opportunities for fund managers or wealth managers. 3rd party fund managers or wealth managers will be able to offer funds structured as “closed ended funds”, investing into startups, listed on the Bloomio platform.

The Technology behind Bloomio.

Blockhain plays a pivotal role in allowing equity crowdfunding to reach a mass market ambition. Frank Holmes wrote that blockchain could be even more disruptive than amazon was in the 90s and crowdfunding is probably the best implementation of what he envisioned.

Translating this into customer needs, means on one side that startups can fragment in minimal components their shares and allowing a multitude of investors to take part in their deal. On the investors side, owing a token, brings a dynamism never seen in the venture capital industry as it is fully tradable without having to wait an IPO before cashing on the investment.

At Bloomio, we strongly believe that the potential of tokenized ownership could soon lure businesses  and retail stakeholders.

How to get in contact with Bloomio?

By its website and email:

All key updates are reflected on our website www.bloomio.com and you are welcome to get in touch with our team at info@bloomio.com

By its Social Networks:

If you are interested in more Tech Startups, you can find in our High-Tech Online Magazine or in our High-Tech Company Directory. Would you like also to include an article about you on our Tech Startup Directory? You can contact us by leaving a comment or write to info@startupstips.com

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