Theme: COVID-19 relief for small businesses
Summary: A decentralized funding application for small businesses
Issue: Through the COVID-19 we saw many small businesses shut down
Solution: A funding app designed specifically for small businesses to help raise capital via initial token offerings (ITO)
Statistics/Evidence of Issue:
- the 38th annual employment survey reveals that Toronto had 3,480 fewer business establishments by the end of 2020 than it did at the beginning of the year
- 1 in 6 small businesses in Canada had to consider completely shut down through the pandemic
- The latest figures, based on a survey of its members done between Jan. 12 and 16, 58,000 businesses in Canada became inactive in 2020
Process:
- Small business owner signs into the app
- They enter the details of their token (name, symbol, supply etc)
- A smart contract is automatically generated, creating their token
- The business requests funding
- Users provide money
- In return for funding, the business provides the buyer with your token
By supporting small businesses, users are also able to make money if the value of the token rises.
*Note: Users do NOT gain ownership in the business
Technology: Blockchain to enable decentralized crowdfunding. Benefits of utilizing blockchain:
—> Transparency
No intermediaries mean there is no trail of money to follow. Money goes directly from the person donating to the small business.
—> Cost/Time Efficiency
There is a significant reduction in costs (and time) to organize the sale and collect money afterward. Small businesses often need every cent they can get, efficiency on the fees front is essential.
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