On-chain AngelList: A New Era of Encryption Private Sale Financing

Private equity financing is essentially a financial transaction that involves exchanging fiat currency for equity. Although it seems simple, it involves a lot of complex professional work, including fundraising, investment, post-investment management, and exit strategies. These tasks often exceed the professional capabilities of the participants, requiring additional costs and more collaboration.

The emergence of online toolsets such as AngelList has abstracted the complex tasks of private sale investment and financing into components and programs, enabling online operation through internet technology. This has greatly improved efficiency, expanded business boundaries, and simultaneously reduced costs. This is the paradigm shift brought about by technological transformation in the industry.

However, the emergence of cryptocurrencies has brought new challenges to private sale fundraising. Due to the inability to use traditional tools, most crypto private sale fundraising still relies on simple management methods, such as multi-signature wallet management of assets and manual transfers. This is not only inefficient but also brings various risks, including capital risk and default risk.

Fortunately, the technical characteristics of cryptocurrency also bring new opportunities for private sale financing. Features such as smart contracts, programmable currency, and data availability allow us to constrain both parties from a technical level, safeguard the rights and interests of all parties, and address the aforementioned risk issues.

For example, we can deploy fund management contracts and redemption contracts to ensure the security of funds; deploy investment agreement contracts to achieve automatic performance; and utilize the openness and data availability of the blockchain to identify investment institutions.

Furthermore, we can make each trading link on-chain and build a complete set of on-chain investment and financing tools. These smart contracts can be freely combined to meet various complex business needs, such as operating private sale funds, investment clubs, SPVs, etc.

This on-chain toolkit not only provides trustless transaction guarantees but also standardizes the private sale investment and financing process, allowing non-professionals to easily complete professional tasks. It possesses all the advantages of being online while ensuring transaction security and performance issues from a technical perspective. This represents a new round of paradigm shift brought by blockchain technology to private sale investment and financing.

In recent years, many developers and builders have been working towards the vision of "on-chain investment". Although there are still challenges, it is believed that with the improvement and standardization of the encryption private sale investment and financing industry, these products serving encryption investment and financing will shine brightly. Let us look forward to this new era full of opportunities.