{"id":661,"date":"2018-08-06T14:44:16","date_gmt":"2018-08-06T09:14:16","guid":{"rendered":"https:\/\/blockchainappfactory.com\/blog\/?p=661"},"modified":"2022-09-13T13:08:44","modified_gmt":"2022-09-13T07:38:44","slug":"an-insight-into-private-equities-and-blockchain-technology","status":"publish","type":"post","link":"https:\/\/www.blockchainappfactory.com\/blog\/an-insight-into-private-equities-and-blockchain-technology\/","title":{"rendered":"An insight into Private Equities and Blockchain technology"},"content":{"rendered":"

Starting a venture in this technological era has become quite straightforward, and a new concept has emerged from all the chaos – Equity Crowdfunding. It has now become one of the most significant sources of startup financing, compared to traditional venture capital. <\/span><\/p>\n

According to data from Venture Intelligence, the June quarter of 2017 saw a meteoric rise of over $8.2 Billion of Private Equities investments across 315 deals. This report is the testament of the untapped potential of private equities. Since the 1970s, the private equity market has increased, and large pools of funds were generated to finance large companies during leveraged buyouts. <\/span><\/p>\n

All these processes were executed through traditional trails of paperwork. The present scenario can be changed with the advent of Blockchain. A decade since its inception, blockchain has proved time and again that its fortress-like security cannot be penetrated. The level of security blockchain offers can be used for disputing deals and customized to meet industries needs. Blockchain\u2019s idea of creating tamper-proof databases has made the financial world shift to it. <\/span><\/p>\n

Crowdfunding and its underlying History<\/b><\/p>\n

Crowdfunding has its history from the 18th century, right from publishing books, war bonds, companies, to banks. The influence of crowdfunding has always been there. Now as everything has moved online, crowdfunding platforms, such as Kickstarter, offers a means of funding innovative projects, tapping into the pool of investors and entrepreneurs who provide a small amount of money required to fund the project. <\/span><\/p>\n

The growth of crowdfunding has seen a steady rise between 2009 and 2014, according to the study by The Wharton School of Business. This advertently made an impact on venture capital investment. As of 2016, equity crowdfunding surpassed venture capital as a source of funding for startups. <\/span><\/p>\n

Cons of traditional methods <\/b><\/h4>\n

Some of the cons of venture capital fundraising methods are:<\/strong> <\/span><\/p>\n