Venture capitalism has been a ‘go-to’ approach for startups in the tech space, hoping to successfully raise the required funding needed to jump start development efforts. There are several thousand startups that are formed each year. The majority of these startups never even reach their first milestone. You can interpret this as there are people with a great vision who give up simply because they just cannot get passed the threshold of getting initial funding.

One crucial point that cannot be overlooked when investing in any venture is being able to ensure that the individuals raising the capital have the best interest of their investors in mind, and that they have the talent, drive and the resources to effectively allocate the capital into development and marketing, and ultimately a finished and profitable product or service.

Let’s take a look at our good friend Tommy Crypto for a moment…

Tommy is an average guy and he has a great idea (or at least his close friends think so). He doesn’t have access to a resourceful network though, and he lacks the necessary capital to even bootstrap his venture. Miraculously, Tommy manages to convince a capital firm that his idea is worth investing in and then he is on his way. Seems pretty cut and dry, right? Tommy now has funds, an idea, but lacks the access or support to bring a minimum viable product to the table of his target customers or users. In this situation, the firm that funded Tommy did not make a healthy investment. This is why VCs look at an estimated 400 companies for every one in which they invest!

Let’s again take a look at Tommy Crypto, but this time he brings his idea to DCORP…

DCORP is a democratically run decentralized operation that utilizes community voting to bring a project to fruition. Despite the fact that Tommy believes he has a great idea, upon bringing his idea to the DCORP community, they feel his idea is not up to par, propose several questions and concerns, and vote it down. Tommy goes home and tweaks his idea in accordance with concerns brought to his attention by the DCORP community and after addressing the concerns, returns for another evaluation. This time, Tommy’s idea is a hit! The community, using their individual strengths and evaluation techniques, collectively decide to vote in favor of initially funding Tommy’s proposal. This is where (in our first scenario) Tommy’s original proposal with the VC firm sputtered, as he had the idea and the funding, but not the team to make it happen. However, this time Tommy has DCORP’s innovative and experienced team as advisors, who will assist in taking Tommy’s idea from ‘napkin’ to ‘next level’.

The Brilliance in Decentralizing and Democratizing Venture Capitalism

What makes democratizing venture capitalism so innovative? The model itself utilizes multiple checks and balances, while capitalizing on the vast experience of several community members all focused on one goal. DCORP is doing just that. DCORP has a diverse community; where members from all over the world with different perspectives will critique proposals. Group ideation techniques such as brainstorming and brainwriting will naturally occur, improving ideas or setting them aside for more innovative ones.

In the image above, we demonstrate the model using Tommy’s scenario. Tommy proposes an idea [green]. The proposal is placed within the platform, thus delivered to the DCORP community. The community then brainstorms and returns [blue] with modifications or additions. Tommy receives the critique and adjusts if necessary, again returning the proposal. This continues until a vote is called in regards to the proposal.

The entire process is facilitated through DCORP’s decentralized VC platform. There is no ‘VC partner’ ultimately deciding on a ‘yes’ or ‘no’. No Caesar who decides which idea lives and which idea dies. It is the DCORP community that vet the ideas, and by doing so are both materially as well as emotionally invested. They are believers in the idea, and will be working as a community to ensure that it will be successful.

To summarize the process:

Our model of decentralized and democratized venturing is the model of the future. We already see that many people have great ideas and are motivated by DCORP’s vision and approach to finally take a step to bring their idea to life. They feel the support of the team and the community, and it helps that we’re all equals here. There are no barriers like when trying to raise seed capital through traditional methods.

On top of that, the feedback and support from the DCORP community throughout the entire process of ideation, creation and market launch will ensure together we will get the best and most innovative products and services out there.