Small businesses across the world face the same problem – accessing funding. With banks reluctant to lend, and when they do interest rates are crippling, finding the capital to get business ideas of the ground represents the greatest obstacle to small business startups. Factor in the relative infancy of financial systems in the emerging markets and developing world, the implications are even more stark. As a result, there’s a significant opportunity to address the problems this causes with innovative technology. That’s where blockchain comes in. If you’re not familiar with blockchain, here’s a useful introduction.
Genevieve offers a dual approach to solving this issue with the Genevieve Exchange (GXE) and Genevieve VC (GXVC), the latter of which has an ICO launching on the 20th January 2018.
What is an ICO?
You will be familiar with IPO’s or Initial Public Offerings – during which companies that are ready to list on the stock exchange become publicly tradeable for the first time. Likewise, Initial Coin Offerings are a process in which ownership of cryptocurrency tokens are offered to the general public. ICOs represent the best opportunity to invest as the value of a token is typically at it’s lowest during the ICO, therefore offering a potentially far higher return on Investment (ROI).
What does Genevieve aim to achieve?
As mentioned above, Genevieve adopts a two-pronged approach. The Exchange (GXE) had its’ ICO in Q3 2017, and offers investors the opportunity to trade the small businesses on the exchange market. As such, as business ventures increase in value, investors benefit from this increase also.
On the VC side, investors who have purchased GXVC hold equity in the companies that have been selected by the Genevieve community. This offers investors an opportunity to reap the long-term rewards of the successful businesses they’ve seed funded by way of distributed dividends. Dividend payments are made on a quarterly basis, and are proportional to how many GXVC tokens an investor holds.
As well as the above, Genevieve also aims to enable businesses to conduct business by way of Lombard credit mechanics – essentially a payment card allowing businesses to receive revenue in cryptocurrency. In markets that are predominantly cash-based, this can potentially not only revolutionise consumer behaviour, but also increase the efficiency of finance in general.
With blockchain being such a complex technology in itself, the potential benefits are not widely available to businesses in the developing world. Genevieve can potentially bridge the gap between the small businesses that can benefit from the power of blockchain, and the the availability of the technology itself. The Ivory Coast has recognised this potential, and have established a partnership in order to explore how this technology can be harnessed to revolutionise the SME market in the country.
With Blockchain representing one of many great shifts in industry at present, it will be interesting to see how this strategy not only provides valuable investment opportunities for investors, but also aids and facilitates entrepreneurs across the globe
This is not a Capital Moments endorsement of Genevieve and their projects, nor is it advice to invest in their product. Remember to do your own research and adopt best practices when investing. Go to https://www.genevieveco.io/ for further information