What's your solution to ensure the funds return to the investors? Say, if a team completes a few stages from the roadmap, but then stops the development and a product is never released. So the team still received some funds, but the investors didn't get the result.
Thank you for your question!
Let me give you an example how it should work out. Let's say a company needs $20.000.000 to develop a project. Imagine that we split the stages into 5 parts. We will provide the funds in rising amounts. For example
1. stage: $500.000
2. Stage: $3.000.000
3. Stage: $4.000.000
4. Stage: $6.000.000
5. Stage: $6.500.000
They must show provable viability, they must appear on exchange sites and they must be at a certain progress in the project where they can start making profit from their activities at the end of the 2. stage. The other stages meant for the future stages of the road map. We won't accept project to appear on our site that have 10+ stages in the next 6 years and they will only start their actual activity when they receive all the money and until then they just 'developing' something that is not tested and not demanded. That's not how a project funding should work.
We've seen banks and other payment institutions developing their own software, buying equipment, licenses, assets, paying their employees and start the operation under $4 million. If that amount was more than sufficient for them, then a start-up company should definitely can start with a lesser amount. Asking for $50.000.000 or $100.000.000 for a project is ridiculous. Especially if they only start to operate once they received all the money.
We will start our demo site within a month. Stay tuned and let's make the ICO market safer together.
The BlokBiz Team