Smart Valley – Decentralized expert community for ICO projects
Friday, January 26th, 2018
SMART Valley is a decentralized valley of innovations that brings together investors, project, and experts in a closed ecosystem of professional community, where all members are united by the same purpose — to create advanced, high-potential technologies. The SMART Valley ecosystem gives its participants an opportunity to raise funds, hire team members, find business partners, and realize their ideas — no matter where they are in the world.
Four key features of the platform allow the ecosystem members to interact in the most efficient way: a safe deal mechanism, an experts marketplace, a fundraising tool, and — most importantly — a unique decentralized scoring system that utilizes expert opinions, crowd wisdom, and mathematical algorithms to assess projects. Our project will give investors worldwide a chance to invest in high-potential projects safely and legally, while project developers will be able to raise funds and build strong teams, providing experts and service providers with interesting projects to work on and stable employment.
SMART Valley aim to create a digital valley of innovations and help the most promising projects survive and realize their potential. To achieve that, we plan to use infrastructural advantages and growth points, as well as powerful tools to connect project, investors, experts, service providers, incubators, and other market participants.
We are currently living through an incredible era in which new projects and ideas enter the market at an astounding rate, while the number of new businesses and services is growing exponentially. However, most of these new projects fail for a number reasons (more on that in the next chapter). Statistics provided by various funds and startup accelerators indicate that less than 1% of all projects and startups actually obtain financing.
At this moment in time, two concurrent events are taking place: world trade growth rates are decreasing (in 2016, for instance, the global value of foreign direct investment reached around $1.52 trillion, 13% less than in 20151 ), and investors are showing a growing interest in developing countries. FDI into developing countries rose by 38% in 2016, reaching $58 billion.
As for the worldwide investment climate, in 2016 the total value of investment in Europe fell by 22%, by 19% in Latin America and the Caribbean, and by 5% in Africa. The most attractive countries for investors are still the U.S. ($385 billion), the U.K. ($179 billion), and China ($139 billion).
According to UNCTAD General Secretary Mukhisa Kituyi, there are still many obstacles on the road to recovery for high FDI values. One of the main causes for concern is a strong drop in investment in industry and manufacture — both essential fields for generating economic growth and a rise in productivity in developing countries.
One of the most promising applications of blockchain technology is decentralized crowdfunding realized via the ICO mechanism. Numerous ICO success stories demonstrate that an ICO can help raise the necessary funds in just a few days — or even minutes — by attracting up to several thousand small investors.
The ICO market is developing extremely fast — hundreds of projects launch their ICOs each month. For instance, as of the end of November 2017, the total cryptocurrency market capitalization exceeded $313.6 billion.
It is worth pointing out that venture financing is simply not an option for most high-potential technological startups due to its centralized nature and high costs. As for the venture market structure, investors’ interest in the B2C segment has grown from 13.7% to 18.9% over the past year. Another trend is the decrease in the share of the segment leader: IT projects.
The average deal value varies depending on both geographic factors and the deal stage. At the seed stage, for example, average deal values fall between $0.8 million (Europe) and $1.9 million (the U.S. and Canada). By contrast, the highest values during the startup stage are found in Asia, where they reach around $7 million.
SMART Valley Ecosystem
The SMART Valley ecosystem includes three key components: investors, projects, and experts and service providers. The creation of the ecosystem will be carried out in two stages, the first being the setting up of the key element of the framework — a decentralized scoring system — and the second, the realization of a set of three other SMART Valley services — the deal mechanism, the expert market service, and a fundraising tool.
The main difference between the SMART Valley platform and its competitors is the emphasis it places on solving the problems of on the three key components. As our analysis of both direct and indirect competitors shows, three models dominate on the market, each of which focuses almost exclusively on the issues of one component, either investors, or projects, or experts.
The SMART Valley model hypothesis states that it is impossible to resolve a complex issue by concentrating on just one of its aspects. The SMART Valley ecosystem approach ensures a unique synergy with emergent properties.
The competitive advantage of the project’s ecosystem is driven by the very architecture of the system and four of its services, which provide solutions for the problems of each of the three project participant groups.