đ¯Ventures
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Last updated
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Ventures is one of the major platforms on the ukiyo ecosystem. A DeFi platform that distinguishes itself from any DeFi platform in today's market.
For most people, there has been a barrier to Venture Capitalism and early investment in the biggest companies in the world. For example, the seed rounds for Facebook (now Meta), Snapchat, Coinbase, Github, and more recently OpenAI has been reserved for the biggest players in the globe.
We bring Ventures to anyone, anywhere, all at once. With just a web3 wallet you can seamlessly pool together and allocate liquid assets into high potential companies hat have the potential to grow. Essentially, Ventures empowers users with distributed software technology and eliminates the middleman associated within traditional financial systems.
What is Venture Capital?
Venture Capital (VC) involves the creation and sale of large ownership chunks of a company or project to a limited group of investors through independent partnerships established by VC firms. These investment pools typically include multiple enterprises, with the market demand for VC growing each year.
However, the benefits of VC has traditionally been restricted to those connected to these industries, such as High Net Worth Individuals, investment banks, and financial institutions. This has left the average investor with limited options, such as stock trading apps, real estate, and cryptocurrency trading. ukiyo aims to change this by breaking down financial barriers and providing a global investment solution via web3, thereby offering access to individuals who have been largely excluded from the VC industries.
VC investments can be categorized according to the growth stage of the company receiving the investment. Typically, the younger a company is, the greater the risk for investors. The different stages of VC investment includes:
Pre-Seed: This is the earliest stage of business development, where founders work to turn an idea into a concrete business plan. They may enroll in a business accelerator to secure early funding and mentorship.
Seed Funding: This stage involves a new business seeking to launch its first product. Since there are no revenue streams yet, the company will need VCs to fund all of its operations.
Early-Stage Funding: Once a business has developed a product, it will need additional capital to ramp up production and generate revenue before it can become self-funded. At this point, the business may require one or more funding rounds, typically denoted as Series A, Series B, etc.
Mid to Late-Stage Funding: This is when a business is fully developed, has a revenue stream in place, and is seeking quick access to liquid cash to further grow or enhance the business through new strategies. This stage typically involves PE funding in exchange for equity or profit sharing.
VC money plays a crucial role in the lifecycle of new or established businesses. Before a company can start earning revenue, it requires sufficient start-up capital to hire employees, rent facilities, and design a product. VCs provide this funding in exchange for a share of the new company's equity. Similarly, when a healthy company develops a new growth strategy that is likely to create greater rewards, it seeks PE funding in return for equity or profit sharing, rather than seeking a loan from institutional banks where interest rates may flatten out the rewards.
In technical terms, ukiyo Ventures are off-balance-sheet vehicles that are created by ukiyo Labs consisting of multiple users to finance specific projects or ventures without increasing the debt burden of the sponsoring firm or diluting its existing shareholders. By reallocating the risk of a single investor to multiple investors, Ventures provides users access to investment opportunities that they may not have otherwise had access to. Its goal is to provide the everyday investor a new source of revenue generation. On the other hand, it allows capital to move swiftly across borders, and reallocate them in a non-custodial manner thorugh the use of smart contracts and API's.
Ventures serves two main purposes for each side of the party:
For Users
Invest in specific projects or ventures without investing in the parent company directly. This method of financing is commonly used to support large infrastructure projects, tech-startups, cleantech, or international real estate, among other things.
For Projects
Companies can use Ventures to raise much needed capital. Since the underlying assets are owned by the users, credit quality is based on the collateral and not on the credit quality of the sponsoring corporation. This benefits non-investment grade individuals who can achieve lower funding costs by isolating their assets from current assets of the sponsor. These structures are frequently used in financing of bonds, equity, and slate deals, among other things.
