Acorn Collective’s Streamlined Solution for the Troubles of Crowdfunding - Moderator
Acorn Collective’s Streamlined Solution for the Troubles of Crowdfunding
In the past decade, crowdfunding has risen from a niche form of fundraising to a multibillion-dollar business. By utilizing small donations from backers, companies are able to raise capital in order to fund innovation in products or services, which they can then reward their backers with.
The World Bank predicts that by 2025, the crowdfunding market will be worth upwards of $95 billion. With so much money flowing into the infant industry, it is important for both tech enthusiasts interested in cool new gadgets and investors interested in the next big thing alike to pay attention to the latest in crowdfunding. One startup, Acorn Collective, has been quietly preparing to revolutionize the industry via blockchain technology.
While crowdfunding is an optimal solution for many entrepreneurs to raise small amounts of capital, current platforms make the process far from seamless. One of the biggest downsides to current platforms is fee structure, which can take away up to 10% of a company’s round of funding.
Transaction fees can also occur on the backer side, making it difficult for backers to fund projects abroad or for projects abroad to obtain funding in their local currency. On top of all this, major crowdfunding platforms have exclusionary rules that make it hard for certain projects to get listed on sites.
Platform rules are vague and whether or not a project is allowed is often left up to someone’s subjective determination. In addition, less developed countries are not allowed access to these platforms, preventing innovation where it is arguably needed most. Acorn Collective’s OAK token and comprehensive ledger system have devised an elegant and simple solution these common crowdfunding problems.
By utilizing a proprietary token for crowdfunding purposes, Acorn Collective is completely overhauling traditional fee structures. Current popular platforms typically charge fundraisers fees not only on completion of their project but also when fundraisers attempt to move their new funds to an account.
Acorn Collective’s platform eliminates fees associated with listing projects on the platform and charges only a tiny fee to convert OAK tokens into fiat money. Combining these two cost-saving mechanisms allows for near feeless transactions for both backers and fundraisers, allowing for entrepreneurs and innovators to collect upwards of 99% of the funds they raised after all fees. One of Acorn’s core philosophies is that crowdfunding is the democratic way to raise funds, and keeping fees as low as possible for all users is integral to a truly free marketplace.
In addition to eliminating fees, Acorn Collective is poised to make access to fundraising easier than ever and bring crowdfunding global. After listening to the complaints of users whose projects were arbitrarily rejected by traditional platforms, the company has set up a marketplace for projects that accepts all legal and non-harmful projects with the standards for qualification of these categories very clear.
Being able to set specific guidelines for projects allows Acorn to expand at a much quicker rate than many of its competitors, and most importantly, bring the possibility of innovation and fundraising to lesser developed nations around the world currently excluded from popular crowdfunding platforms.
Acorn’s marketplace is open to any user from any country around the world so long as they have a connection to the internet, with the Blockchain taking a considerable strain off of older and less powerful machines that may be in use in poorer nations.
One of the main challenges to expanding to less developed countries for traditional crowdfunding platforms has been exchange rate problems. Crowdfunding projects in one currency is easy, but the more currencies that get involved in the system, the more complicated and expensive it becomes both for backers and fundraisers to be able to effectively use the platforms.
Acorn’s OAK token is a simple solution to these problems by allowing all transactions on the site to occur in a single currency. By eliminating multiple conversion fees that are subject to change on a daily basis, fundraisers are able to set goals for their projects that match their local needs while also being able to cater and market to backers from across the globe.
An additional feature that sets Acorn apart from much of its competition is its support for projects not only during their periods of fundraising but after as well. The startup offers a comprehensive and responsive support network with determined employees. Priding itself on its transparency, the company allows for communication with and information about nearly every member of the company’s team if a project ever has a question or is in need of a specific type of help.
Following the completion of fundraising, Acorn Collective also offers a Blockchain based marketplace that simplifies transactions between new companies and consumers through the same OAK token. The proprietary marketplace simplifies selling products that have been successfully funded, especially for entrepreneurs in less developed countries who may not have access to resources to make their market and sell their own products online.
As both the crowdfunding industry and Blockchain technology continue to grow and advance at mind-numbing speeds, it can be expected that more new ideas will be coming out of basements and dorm rooms than labs full of experts.
As these new innovators begin to building the future, a comprehensive, efficient, and easy-to-use crowdfunding platform will be a necessity. Acorn Collective believes not only in the growth potential of these industries but also the freedom the platform allows its users. By restoring the real power of fundraising to the public, startups like Acorn are preparing the tech industry for a wave of discovery and progress not yet seen before.