Venture Capital has forever changed the way we live and exist. Human activities are now primarily driven by one form of business or the other.
From information technology to biotechnology companies and even blockchain technologies, it is a known fact that venture capital is useful in everyday life.
When it comes to the business structures of venture capital companies and their investment processes, holding companies serve as the best special purpose vehicles which provide the necessary capital from incubation to critical mass which is the point where such companies reach the point at which they can profitably sustain themselves.
These special purpose vehicles create an avenue for the raising of capital which is critical in their business lifecycles.
VOLUM a holding company formed by Bengala Technologies, LLC and International and Beverage Spirit Group (ISBG) aims to use both traditional fundraising models and new disruptive technologies and processes to be able to create a trustworthy model which can help preserve the long-term value of companies where portfolios are held.
VOLUM already has initial minority stakes in the following companies with more to follow:
- Software Developers Associates Inc., which is a Spirits industry Mobile and Social App,
- Energy Rescue Systems Corporation (ERS) which deals in smart cities and advanced energy markets,
- ACME Financial which provides captive financial services for ERS and other compatible clients and customers,
- GridPower Network which provides energy optimization across electrical grids and is also an electric power reseller.
VOLUM also includes as part of its ecosystem active governmental engagement which will ensure that regulation and the adequate Anti-Money Laundering and Know-Your-Customer processes are fully implemented as regards compliance.
The Major Problems in Raising Capital for Startups and Other Expanding Organizations
Identifying Organizations which are Investment Worthy
The particular issue of identifying organizations that are investment worthy has been the major bane holding investors back from making the right choices.
The use of blockchain technology as an impartial investment decision maker in the ruling process plays a major role in making sure that investment choices are indeed credible and provide a return of capital.
VOLUM as a hybrid solution ensures that investment decisions are sound.
This is done via extensive research and due diligence which ensures that any organizations which are invited to join the VOLUM platform are sound in all respects.
Based on the principle of the creation of long-term asset value which is based on logistics disruption in the supply chain processes of the companies, VOLUM is an early leader in using blockchain technologies to ensure that value is delivered as and when due.
Using the assets which it holds in the various organizations where critical ownership stakes are critical, VOLUM uses various tokens within its ecosystem to ensure that the preservation of value is sustained.
With the integration of an Oracle-based user interface, VOLUM ensures that investments provide a sound basis for profit optimization within and even outside its ecosystem.
Using tokenization of intellectual property, minority stakes and other assets which such organizations possess, VOLUM ensures that the digitization process of assets is complete and without any encumbrances which will affect the future values of such assets.
Investment Protection for Investors
When it comes to unproven business models which don’t offer adequate investment protection, the regulatory incompetence that surround the ecosystems upon which those systems operate has created a situation where there exists little or no protection for investors in startups.
VOLUM, as an organization, offers a dual-purpose investment protection model.
In the first, minority stakes in the organizations are held; thus limiting the risks and financial exposure which VOLUM and the various investors under it as a platform face.
Secondly, indemnifications of purchases serve as insurance on investments for those participants who wish to ensure some form of protection for their investments.
Public Participation without Bureaucracy
One major problem that has faced various venture capital projects globally has been the inclusion of the general public from the initial stages of the investment process.
Too many bureaucratic processes have prevented individual investors from participating within venture capital programs and has limited their ability to make maximum profit from investments which often generate big gains within a short space of time.
The use of blockchain technologies as an inclusion factor within the process allows for this.
Using smart contracts based in the Ethereum blockchain, individuals will be able to participate in the investment process and even make various gains from the various companies that VOLUM has within its blockchain.
Users are also able to gain various rewards based on participation within the VOLUM ecosystem.
Such activities include:
- Operational activities which occur when the user executes three or more deals on the network,
- Ratings and feedback on events,
- Referral promotions,
Exit Strategy without the Undue Regulation of Cashflows
Regulation, as regards the exit of profits which individual and institutional users gain from investment decisions made, creates unnecessary worries and headaches for those investors.
VOLUM through the use of its hybrid model enables all investors to be able to exit without the undue regulatory roadblocks that exist in traditional Venture Capital Investment systems.
Using its token VLM, investors with adequate due diligence specifications can exit their investment portfolios without the regulatory burden which is usually imposed in other systems.
This is because such systems are blockchain based and use smart contracts which are decentralized in nature.
Adequate required paperwork shall always exist in order to ensure that all legal requirements are met for the successful exit of investors.
VOLUM Token: The VLM
The Volume token is the primary asset which will be used in the ecosystem.
As the sole utility token for all transactions within the VOLUM ecosystem, VLM will ensure that the system provides the usability and functionality that any robust financial system has to offer.
The various types of transactional processes which any stable token must offer in systems such as this include but is not limited to the following:
- Payments
- Rewards
- Purchase Orders
- Legal Contracts
- Regulatory Compliance
- Taxation
- Shipping
- Letters of Origin
- Customs Documents
- Inputs and Inventory Ordering
- Delivery Tracking
- IOT monitoring and reporting
- Big Data Analytics
- Inputs and End-Product tracking/traceability
Even though VOLUM as a system offers world-class adaptability and influence-to-change when it comes to inclusion within the VOLUM system, the internal standards which must be compatible with VOLUM must be adhered to and VOLUM must as a matter of principle invite only companies which adhere to such standards to participate in its ecosystem.
All these contribute to its single token system.
The Different Types of Tokens Within the VOLUM Ecosystem
Using the popular Ethereum blockchain, VOLUM shall use two specific types of tokens within its ecosystem.
- ERC20 compatible tokens which have a transactional basis within the Ethereum blockchain,
- ERC721 compatible tokens which have specific use cases only and are used for single case uses within the Ethereum System.
VOLUM shall enable all kinds of organizations which shall be able to use tokens for all the transactions within its system to be able to execute activities during their investment events.
Various kinds of activities will be available within the VOLUM ecosystem for transparency and monitoring purposes.
Government Activities
All activities such as licensing, tracking and monitoring of required revenues shall be available using tokens.
User Activities
Users shall be able to ensure that all the kinds of transactions which are required for investment are available using the VLM which is the ERC20 compatible token within the system.
All unique identifiers such as account balances, transaction fees, supply chain operations, user legal agreements, and corporate contracts shall use the ERC721 compatible token.
Once the expiration of the ERC721 token’s lifecycle has expired, the erasure of data via self-destruction of the token and automatic deletion of the meta-data within the user interface of the VOLUM interface shall then ensue.
Smart Contracts: How will they work within the VOLUM Ecosystem?
Smart Contracts shall ensure the governance and implantation of the use of the various tokens within the VOLUM ecosystem.
The following ways depict how they shall work.
- The main VOLUM operational smart contract which shall govern the basic operations of the VOLUM ecosystem,
- User event generated smart contracts which are occasioned by the user’s activities within the ecosystem,
- The VOLUM API which will allow for integration with the various third-party systems which will allow for it to work,
- The VOLUM escrow system which allows for secure storage of investors’ funds,
The VOLUM token shall have dual purpose functions:
- The use of the VOLUM escrow service which is available to all investors,
- The time-based Smart Contracts which would need time-based functions for execution and termination.
Self-Execution in terms of operations shall allow for the smart contracts within the system to be able to function effectively.
This will allow the system to be self-governed and prevent abuse by third parties.
Final Thought
Investment activities are definitely not going to be the same where innovation is concerned. VOLUM as an investment system which enables safety of both the investor and the investors’ funds is one system that everyone can look forward to participating in regardless of status (either individual or institutional).
To learn more, you can always check Volum official website or download their whitepaper.
Author: cryptomagis
This article was posted in exchange for a potential token reward through Bounty0x.
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