7 reasons why Decentralized Venture Capital will take over the markets
The development of digital services opens up various new opportunities for technological progress that a large number of people can benefit from. Nevertheless, this phenomenon involves the masses putting more and more of their data online. This raises concerns regarding our privacy. Against this comes blockchain technology based on decentralization, thanks to which various solutions can be accessed by anyone from anywhere in the world while maintaining anonymity and transparency.
At Lucrosus Capital we believe that blockchain solutions will be the next technological revolution. The potential venture capital investments may be utilized more effectively if they are made available to a wider audience. This will result in greater profitability and improved performance of the sector as a whole. Below, we present the arguments that confirm that Decentralized Venture Capital (DeVC) will revolutionize the financial sector and gain enormous popularity as time goes on.
1. Tokenization is the future
Tokenization is a tremendous trend in the blockchain world that will revolutionize each field of our life. One of them will be the finance sector, including venture capital funds. Tokenization allows for previously unseen utilities. The very fact of having their own token mobilizes institutions to perform at their best. The results of decentralized VCs drive up the price of their tokens and vice versa. Beyond the mere function of valuation, the use of tokens can directly impact investor entitlements.
Being an owner of our token $LUCA allows you to participate in profits made by Lucrosus Capital thanks to the shared allocation program, decide on the time when we will buy back $LUCAs from the open market, stake your coins, gain access to our research or take part in direct meetings with project developers.
2. It’s time for smaller investors to join the game
In the case of the traditional venture capital funds, there is an obstacle of inaccessibility for smaller investors. Only the rich can participate in fund operations and profit-sharing. Those who are unable to engage with traditional VC funds are missing out on more favorable investment terms that can only be provided by institutions.
This market gap can be addressed by decentralized venture capital funds, which reach out to smaller investors with various methods, for example, tokenization. Such a solution allows investors to benefit from DeVC features according to the number of owned tokens, without enormous thresholds like those in traditional venture capital funds.
3. No more trust issues with processing your money
Decentralization in the financial sector brings the application of digital ledgers. Thanks to blockchain nobody must worry about some intermediary correctly processing your money transfers. Moreover, the usage of smart contracts allows to shift trust from bureaucratic and overly regulated organizations to decentralized and widely accessible blockchain based on pure math and cryptography.
What is more significant, this change comes with more transparency. Blockchain remain public and their updates are validated by a great number of miners and validators. Nobody can cover tracks of your transfer and you will always see the path your money moved. This direct and permissionless investing is the type of cutting-edge innovation that changes the rules of the game.
4. Each investor has an influence
The next advantage of decentralization, just as the name suggests, is that no hierarchy and no narrow group makes all decisions. DeVCs through tokenization, give every investor the opportunity to participate in creating operations. This is a unique advantage that does not exist with overly structured traditional venture capital funds.
Owning a Lucrosus Capital token — $LUCA — gives several opportunities for investors, who can thus have a real impact on the activity of organizations. Holders of $LUCA can take advantage of numerous benefits such as buy-back, where our DeVC buys tokens from the market to reduce circulating supply. This makes our token increasingly rare. Holders of $LUCA will decide the timing and extent of the buy-back. Besides, another utility is the ability to decide to conduct interviews with project developers, which will be available only to our investors. Additional benefits will be presented soon!
5. Demand for blockchain will be only greater
Traditional venture capital funds have been present on the markets for decades. They have gained experience and have matured. The same goes with their investment strategies — for a long time funds have conducted moves on traditional markets like stocks, bonds or commodities and made gains out of it. If it has been so profitable, why bother to change it? This is their general thinking. But for DeVCs, like Lucrosus Capital, it is an incredible opportunity.
Decentralized VCs are in their infancy, just like the whole crypto and blockchain markets. Therefore the development of projects in these fields is inherently connected with openness for changes and updates. DeVCs will quicker, than traditional VCs, find that other projects based on digital records are worth investing in.
Combine this with the constantly growing number of emerging blockchain projects and the increasingly high demand for capital and everybody will see that it is an amazing time to enter the crypto market and still be an investor pioneer who can expect great returns.
6. DeVCs know the challenges of project developers like nobody else
The DeVCs themselves are based on blockchain technology. Therefore, they know, from their own experience, what the struggles are in running such businesses. Such a phenomenon is rare for traditional funds. At Lucrosus Capital, we care about the best possible development of the projects we work with. We ourselves have already experienced legal issues or marketing challenges that are necessary for success. It is similar in the case of analysis, which we conduct to thoroughly know the market situation and our environment. Therefore, projects in which we believe can count on our help in various areas.
7. Community powers communities
Decentralization is based on the mutual trust in vast numbers of people with similar values. We are all well aware of the potential found in the actions that are carried out by these masses of people. A good example of this is the actions of the smaller investors on Reddit when they united together and achieved success in the markets by investing in 2021 in shares of companies like Gamestop, or AMC. Whether that was sound — investing is debatable. Nevertheless, these events showed that investors who individually could not make profits, as a group made huge gains and were able to beat funds with multi-billion dollar valuations. In Lucrosus Capital we believe that similar joint action of many investors can drive not only the development of our DeVC but also the same group can support and give guidance to projects with which we cooperate. Working together can only have positive effects. This is a win-win-win situation where our investors, the cooperating projects and the Lucorsus Capital benefit.
The idea of Decentralized Venture Capital is still in the early stage of development, however, it has the capabilities to stir up the financial sector. Thanks to the application of blockchain advantages, DeVCs open doors for investors who previously could not afford to participate in venture capital investments. Do not miss out on the trend, which will change the rules of the game and become a partner of Lucrosus Capital!
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