EDGE196 aims to solve the challenges of the traditional VC industry with unique model
Written by Liza Mazurina for EDGE196.
The venture capital model has been worn out by old repetitive failures. It’s time to revolutionize the industry and EDGE196 aims to completely transform the ecosystem.
Since its inception, the venture capital industry has had many challenges and industry participants are yet to develop a successful investment-winning formula. Most venture capital firms learn through trial and error, and even the most rigorous approach cannot predict whether an ingenious startup idea will conquer the market or fall into oblivion.
The startup lifecycle is like a seed — the better the groundwork and resources, the better the growth will be. Lack of resources, meanwhile, will stagnate the team, prevent product growth, and consecutively kill startups.
Thus, investors will often spend too much time on due diligence before they invest. They all try to find the next unicorn. Yet they make many mistakes, often ending up in analysis paralysis or just simply investing in the wrong companies.
Product/market fit, efficient mentorship, and sufficient financial resources are among the most important success criteria for startups. The lack of these three factors, in whole or in part, can completely or partially lead to startup failure. Unfortunately, venture capital industry players do not pay enough attention to these pain points as a complete package.
EDGE196: A Cutting-Edge Approach to VC Investment
The problems in the VC industry clearly highlight that there’s a need for new innovative, ground-breaking solutions that have never been on the market before. EDGE196 aims to bring that solution in Q1 of 2021 with its upcoming new Digital Fund.
EDGE196 utilizes decentralized blockchain technology and unites founders, global startup ecosystem partners, and business support services in one portal. According to the U.S. Bureau of Labor Statistics (BLS), approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.
To challenge these bleak statistics — which have largely remained unchanged since the 1990s — EDGE196’s core principle is its ‘3M-Model’ (Money, Mentorship, and Market access). This concept aims to provide founders direct access to funds, provide mentorship in several industries (legal, marketing, technology, etc.), and access to their respective industries, with a focus on crypto markets. Through this, EDGE196 will disrupt the existing VC investment model which fundamentally lacks some of the most essential components for solid long-term business success, as the BLS statistics clearly show.
EDGE196 has an ambitious goal of investing in 100 start-ups by the end of 2021, which will then exponentially increase in 2022 and beyond. Its organic growth will further expand to embrace both commercial and non-profit initiatives, making EDGE196 a positive society influencer, technology driver, and global trendsetter.
