Thomas Carter, a fintech startup veteran and serial entrepreneur, is on a mission to disrupt the traditional finance model capital raising by leveraging cryptocurrency and blockchain technology. Although ICOs are known for their scams and Ponzi schemes, Carter has found a new way to leverage the ICO model and create an alternative to bank financing without the messy scams. He calls this Dealbox, a business accelerator and crowdfunding platform that tokenizes startup companies.
A Quarter Century of Experience in FinTech
As a serial entrepreneur with over 30 years experience in the startup sector, and as a founder who has raised capital in a number industries from finance, multimedia, to sports, and marketing, Carter noted that there had to be a more accessible procedure to fund a company.
Carter mentioned to Entrepreneur Magazine that he launched Dealbox because he wanted to use his experience to help new startup founders and companies raise capital unconventionally, especially since it’s an extremely tough process.
Dealbox: a Business Accelerator and Crowdfunding Platform
Carter created Dealbox, a crowdfunding platform and business accelerator that helps companies in cutting-edge industries like artificial intelligence, 3D printing, Cannabis, payment processing. Carter intends to disrupt the traditional capital raising model by allowing founders to share their business plans with many investors at once instead of doing many rounds of pitches.
The new approach is possible by leveraging new financial technologies to handle large data sets in real-time.
Instead of the traditional crowdfunding approach, DealBox works with and sources the capital organizations from family offices, private equity firms, and knowledgeable investors during the pre-sales process before the public sale.
He noted that one of the most substantial benefits of crowdfunding is its ability to enable the startup to secure small or large investments from a large number of investors. In return, the investors gain partial ownership, dividends, and appreciation for the funds.
Bringing Due Diligence to the ICO Ecosystem
To invest in DealBox’s startups, investors need to purchase “DLBX” tokens during the pre and public sales. DealBox exchanges the cash as early stage investments in the platform. The crowdfunding and business accelerator then undergoes a “lock-up” period for 12 months.
The tokens are fixed at $1 and do not trade freely, ensuring that the investors are protected from any initial volatility. DealBox then ensures that there is an exit after this period like pursuing Form s-1 Filing or uplisting on a cryptocurrency exchange. Part of the company’s profits is then given to the investors in the form of royalties.
“Our crypto-economic analysts rigorously vet startups against the same compliance standards applied to public companies,” said Carter. “DealBox is creating real economic value by raising standards to improve the overall health of the blockchain ecosystem.”