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Tecra Space - the new way of fundraising
The project funding process is just a few simple stages:
- The project is accepted to the platform. Potential investors receive information about the project, the creator sets milestones as to the project's implementation.
- The project creates its token and starts a fundraiser. Investors purchase the project's tokens using cryptocurrency, and the creators raise funds for the project realisation.
- After the collection is completed, the project can enter the implementation phase (if the collection is successful).
- Developers receive funding for the project in tranches. To receive the installments, the project is required to meet predetermined milestones.
- The creators are using part of the revenue to buy tokens from the market. By doing so, they repay their debt to the investors who backed them financially.
Other key issues for the project creator to pay attention to:
Tax risk - the only tax that the creator has to pay is income tax in case the USDT cryptocurrency is changed to fiat money (e.g. PLN, USD). However, the project can be carried out completely in crypto, which exempts the creator from paying tax.
Project token - the project issues its own token, which legitimizes the contract between the investor and the creator. The investor who backs the project purchases the tokens on our platform and can then trade them on our decentralized exchange Tecra DEX.
Repaying debt with investors - according to our model, this takes about 10-20 years. The creator determines what % of their revenue is used to buy tokens from investors. The higher the percentage, the greater the chance that the collection will be successful.
What exactly is the process of giving a portion of the revenue to investors? For a certain number of years (decided by the creator), the creators buy back their tokens quarterly from investors on our Tecra DEX exchange, providing token holders with a return on their investment. The repurchased tokens are then burned, reducing their number on the market. Once all of the tokens have been repurchased, the project has paid off all of its debt with the investors who backed it during the fundraising.
Using Expanse Plus' photovoltaic project as an example: the developers of this project have committed to spending 80% of their revenue on token repurchase (the profitability of the farms is easily calculated, hence such a large percentage). Starting in Q1 of 2022, they will start buying tokens from the market for 80% of their revenue quarterly for 15 years. Investors will list the tokens on the exchange and the creators will repurchase and burn them. After 15 years, investors will sell all their tokens, so the project will be independent from investors.
Blockchain solutions on Tecra Space - they allow us to tokenize intellectual property (i.e. startups at an early stage of development) and create a project tokens on our own blockchain. The technical aspects of token issuance are on our side - but it is up to the creators to determine their price and quantity, as well as the percentage of revenue used to repurchase the tokens and the duration of the buyback. Naturally, the creators can also count on our advice and assistance when it comes to the mechanisms of the platform and all kinds of legal issues. In the future, we are also planning to promote the collections with the use of a marketing agency.
How to apply?
There is nothing easier than the process of submitting your project to Tecra Space. On our main page there is an application form where you need to provide basic information about your project - you can read about all the necessary data and suggested documents in this article. After filling in and sending the form, we will get in touch with you within a few days. Once your project is approved, it will go to the project waiting room where our community will be able to learn more about it. In the future, the waiting room will have a voting system, where our community will decide which projects are to start their crowdfunding on Tecra Space. This will allow the projects to start gathering supporters even before they officially start their fundraising, and increase their chances of a successful emission.
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What kind of projects are we looking for?
Tecra Space was created for interesting projects at early stage of development which are looking for financing independent from banks and big corporations. We create space for creators of innovative projects with unique solutions that can change the world for better. Tecra Space is a particularly good choice for entrepreneurs who do not want to be bound with their investors for life. Our project financing model assumes that the creators completely repay their debt to investors within 10-20 years.
We are looking for projects mainly from industries:
biotechnology
IT
advanced medicine
DeFi
eco-energy
life-style
AI or machine learning
gaming industry
environmental protection and sustainable development
logistics
Only these?
No. If you have a project that is not related to the industries listed above - that’s not a problem. Submit your idea and we will give you our feedback! We are looking for creators who think like us. We want them to share our values and the desire to improve the world around us - in many different ways. Submit your project via the application form now!
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