YouToken's Main Competitve Advantages (Part I)
Every business in every market has to face competition and YouToken is no different. That's just the natural way of the ecosystem. However, it's how one deals with this competition that separates the victors from the rest. YouToken faces challenges from both the "old world" of crowdfunding and the new. Yet, by utilizing a few, innovative concepts, weaknesses become strengths that help propel YouToken above their competitors.
YOUTOKEN'S FIVE TYPES OF COMPETITORS
Chinese general and author of The Art of War once famously wrote that "if you know the enemy and know yourself, you need not fear the result of a hundred battles." Maybe a little dramatic in this context but the overall message still applies. In order for YouToken to stay one step ahead of its competition, it must first acknowledge their existence and understand their strengths/weaknesses.
YouToken's competition takes the form of these five groups:
- Business angels/angel investors
- Traditional crowdfunding platforms (i.e. Kickstarter, IndieGoGo, GoFundMe, etc.)
- Traditional banks and new P2P lending sites (i.e. Lending Club)
- Business accelerators and venture capitalists
- Modern blockchain competitors
Now that we've identified the competition, let's take it another step further and analyze YouToken's advantages over each one for both entrepreneurs and investors.
YOUTOKEN VS. BUSINESS ANGELS: GLOBAL AUDIENCE
First of all, it must be stated that there is nothing wrong with business angels. In fact, they are incredibly useful. Useful if you ever get the chance to meet them. See, that's where the main problem lies for millions of people. The average person does not have a business angel's number on their smartphone. That's reserved for only a select few.
Hence, YouToken's advantage, in this case, is to provide entrepreneurs with access to a massive, global audience of potential investors that before, were difficult to connect with. Furthermore, YouToken gives entrepreneurs the opportunity to seek advice from this large global community. There are strength and possibility in numbers. More potential investors mean a higher possibility of success and entrepreneurs need all the help they can get.. According to the Global Entrepreneurship Monitor, there are over 582 million entrepreneurs worldwide and many of them don't know where to start when it comes to funding. YouToken hopes to solve that dilemma. In addition to that, we have the issue of trust.
When a business angel puts forth their money on an investment, they are relying on their personal feelings of trust towards that entrepreneur. Sometimes it works but it's also a risky move. YouToken helps to eliminate that risk and strengthen the bond of trust since each investor is protected by the YTN_creatorname token ownership. This makes the entire process 100% transparent and helps keep entrepreneurs accountable for their actions.
YOUTOKEN VS. TRADITIONAL CROWDFUNDING PLATFORMS: SIMPLICITY
Sorry to quote yet another author again, but American transcendentalist and renowned philosopher Henry David Thoreau comes to mind in this scenario. In his book, Walden, Thoreau believed that "our life is frittered away by detail. Simplify, simplify, simplify!" In a world that's getting increasingly more complex due to technology, YouToken looks to Thoreau for inspiration when competing against traditional crowdfunding platforms.
"Simplicity" is the key word here for both entrepreneurs and investors. To start benefiting from a YouToken membership, creators just need to have a clear idea of their business. That's it. No need for legal entities, prototypes, boring paperwork or a minimum viable product (MVP.) In addition, YouToken gives creators access to a global network of investors, no matter which country they are from. This is not the case with more traditional crowdfunding platforms who often put up a wall of regulations depending on the country of residence.
Maybe this sounds all too good to be true. You're probably asking "how much money do I have to pay YouToken for all these advantages?" Our platform is not free to use, but compared to some other traditional platforms charging anywhere from 5%-10% of fees towards their service, our 1% "commission" is a welcome change for users.
Investors can also expect the same, levels of simplicity here. There are no mountains of paperwork to climb or mazes of bureaucracy to navigate. With YouToken, buying an entrepreneurs token is efficient and simple. To compare it to more familiar terms, the process is just like how one would invest in a company on the stock market.
Thank you for reading part one of two regarding YouToken's competitive advantages. We still have a lot more ground to cover so if you're interested in seeing how else our platform improves the crowdfunding ecosystem, keep an eye on our blog daily. Also, stay tuned for more updates regarding cool, new features for the platform.