If you’re an entrepreneur, many pundits say that 2018 is the year the blockchain can revolutionize your business. PwC kingpin Mike Quindazzi and many online fintech reviews are optimistic that the blockchain will mature into an instrument that entrepreneurs can count on.
However, you don’t have to be a big player to benefit from the disruption cryptocurrency brings to the market. While large enterprises are using the security of blockchain to automate contracts and innovate corporate investments, scrappy entrepreneurs can use it to leverage expansion or even a startup. Let’s take a look at two scenarios that could make that happen.
Access to Capital
Raising capital is one of the hardest things to do if you’re an entrepreneur. Outside the U.S., new business owners don’t even have access to banks and other fundraising vehicles, and they are forced to borrow at exorbitant rates if they can get cash at all. The costs of traditional bank loans and financing include hidden fees and account minimums, but all this could change. Blockchain provides opportunities for entrepreneurs instead of barriers.
Blockchain provides entrepreneurs with access to capital from anywhere in the world. Not every inventor or investor with a big dream will qualify for funding, but that’s worlds ahead of having no one to pitch to in the first place. Digital currencies, such as bitcoin, are geographically independent. This means anyone can accept and send out cryptocurrencies with no concern for monetary exchange rates and fees.
More Efficient Fundraising
Startups move quickly and must solve problems that arise immediately. A huge barrier to expanding operations lies in the need to raise additional funds. Raising money through venture capitalists takes months and draws your focus away from your nascent enterprise.
Here’s where the blockchain can help. Using fintech solutions, including blockchain technology, VCs can transfer funding five minutes after they decide to make an additional investment. The speed of the process boggles the mind with possibilities. You can press the button on new marketing outreach, R&D or a myriad of other endeavors every startup must perform to survive and thrive.
Reinvesting in the Blockchain as a Going Concern
Beyond raising capital for startup and expansion plans, entrepreneurs would do well to invest in their own staffing for the blockchain. Top influencers Mike Quindazzi and Brett King believe the safest tech investment over the next year will be in hiring blockchain developers to prepare your company for coming changes.