The CDF creates an investment platform through which international investors can invest in promising, high-impact startups from developing countries. The funding is based on milestones and impact reports which have to be prepared by the startups and validated by different partners. This allows for increased transparency but also for industry reports once the platform has attraceted a certain number of investors.
We are adressing the areas of financial inclusion, job creation, international partnerships and private capital mobilization for the achievement of the sustainability goals of the UN.
There is a significant funding gap in developing countries for startups with ticket sizes of 100k-1m USD. Through our standardized platform we can reduce transaction and investment costs e.g. for monitoring, screening and legal protection significantly. In the future, we want to use our pay-for-milestones and pay-for-reporting model in order to create industry reports for impact investors in developing countries.
CONCEPT/IDEA: Our next stage is the performance of our proof of concept. We are already partnering with startups from Nigeria in order to find them funding in Europe. We are also already in early talks with some potential investors and hope to finalize their investment in Q1 2019.
International transaction: By reducing the international transaction costs, investments in developing countries will become more attractive for international investors. Smart contracts: We use smart contracts to apply our staged financing model in which funding is automatically released if startups achieve certain milestones and prepare pre-defined impact reports. As the funding is blocked in smart contracts, startups have the security of receiving the money when progressing. Tokenization: We tokenize the startups in order to make them international accessible and tradeable. This again reduces costs for investors and in addition creates liquidity in illiquid market. Hence, exist opportunities are created. As in almost all blockchain projects, the solution could be created without a blockchain, however the solution would barely be as cost efficient and transparent. This is specifically relevant reducing cost and transparency is needed in order to make investments in developing countries attractive.
We are currently six team members of which the three co-founder work full-time on the project: Philipp Lesche: Philipp graduated from TU Munich School of Management studying Management and Technology. He has worked on different topics around the Blockchain technology and its various applications. In addition, he supported promising projects as an ICO advisor. Simon Scholz: Kai Schmidt: Mohammed Al-Salafi McIntosh Kuhlengisa: Farhan Shahid Nawaz: