YouToken is working at the intersection of three markets:
Rapidly- growing crypto and blockchain market;
Growing crowdfunding market;
Online trading/investment market.
Our main goal is to disrupt the crowdfunding industry using the opportunities of blockchain technology and the FinTech industry (online trading/investments). We simplify the investing process and capitalize on entrepreneurs who are at the early stage of their success.
We will target:
Disadvantaged Entrepreneurs: we specifically plan to attract and increase the number of creators at the early stage of their idea who don’t have access to other crowdfunding or investing opportunities (i.e. Kickstarter, Indiegogo, angel investors, etc.)
Investors/backers: we plan to attract and increase the number of investors/traders/backers who already have experience in the financial market and/or traditional crowdfunding but don’t have access to “human intelligence” investment opportunities (investments in creators, not just in creator projects).
Market facts and value proposition
Crypto and Blockchain market
At all levels, the market is booming. The global blockchain market is expected to be worth more than $20 billion by 2024:
Significant growth of cryptocurrency users: By the end of 2015, the number of Blockchain wallets was 5.4 million. At the end of 2017, that number nearly quadrupled in size to a number 21.5 million wallets. (blockchain.info, statista.com).
Boom of ICO as a fundraising tool: total number of ICOs in 2016, total raised $96,389,917; in 2017 - 279 projects raised $4,801,224,551 (coinschedule.com)
Rapid growth in number of blockchain entrepreneurs and developers: 26,885 projects were on GitHub in 2016, as of today there are more than 87,000 (deloitte.com).
In terms of its development, blockchain is where the internet was 20 years ago. Only 0.5% of the world’s population is using blockchain today, but 50% or 3.77 billion people use the internet (source: forbes.com).
YouToken opens blockchain market potential to the wild, global mass of early stage entrepreneurs, providing them with funding and community support needed to start their first blockchain project. In this way, we bring new people to the market.
According to reports from World Bank, crowdfunding investments will be a $96 billion/year industry by 2025:
Transaction value growth: According to data taken from statista.com, the transaction value in the “crowdfunding” industry is expected to show an annual growth rate (CAGR 2018-2022) of 29.0 % resulting in the total amount of $25,919M in 2022.
Number of Entrepreneurs: The number of individual crowdfunding campaigns is expected to grow from 178,500 in 2017 to 216,230 in the U.S. by 2020, total worldwide annual number of entrepreneurs (campaigns) - is expected to be at the level of 2,260,230 by 2020.
Number of “crowdfunding investors”: According to estimated data from the World Bank, there are up to 344 million households in the developing world that are able to make small, crowdfunding-based investments in community businesses. As a traditional crowdfunding market leader, Kickstarter.com shows stable month-by-month growth of backers. The number is almost tripled from February 2014 to January 2018, from 5.6 M to 14.06 M.
Worldwide Growth Figures (2017-2018):
North America: 178,494 – 189,404
Europe: 112,586 – 127,981
Asia: 6,089,645 – 8,302,347
Latin America: 20,913 – 24,287
Australia: 8,018 – 8,440
Africa: 126,345 – 143,772
Number of total and repeat Kickstarter project backers as of January 2018 (in millions) (statista.com)
“Crowdfunding (in general) is an innovation in entrepreneurial finance that can fuel “the Rise of the Rest” globally.”
World Bank report
Traditional crowdfunding platforms, such as Kickstarter, Indiegogo, etc. opened new possibilities for funding more entrepreneurs in more places around the world.
YouToken is going to leverage the growth of the crowdfunding industry via:
Focusing on the personalities of entrepreneurs, not just on their products,
Establishing a connection between traditional business initiatives and possibilities of blockchain.
Simplification of the crowdfunding process (no paperwork and legal entities are needed to start entrepreneurship).
Online trading/investment market
At the end of XX century, traditional stock and commodity exchanges started their move from “physical trading on the floor” to the Internet. Since this moment, the market community of individual online traders started to grow.
Based on Libertex research, as of 2018, there are up to 500 Million traders worldwide, including 155 million of U.S. stock traders.
As of today, these people already have experience in trading/investing in stocks, bonds, currencies, indexes, etc. Using the same mechanic like in a financial market, YouToken opens up experiences online and gives investors a new opportunity - an investment in the “assets of human intelligence” (entrepreneur’s tokens).
Financial market and Blockchain
The next significant technological change after the Internet in the early 2000’s, for the entire financial market, will be a move towards "Security Token Offerings.” Here, companies will be able to use different regulated platforms, in some cases built on the Stock/Commodities Exchanges basis, to issue traditional equity and debt through tokenized securities, which would then be offered to investors through regulated offerings (look at NASDAQ, CSE initiatives). YouToken goes forward offering the same technology for private individuals, creators and retail investors.