Capital is surely a critical reason many entrepreneurs seek long-term relationships with VC's. Businesses without financial reserves are like engines running on fumes – they don't move fast enough, if move at all. But it is trust that plays a major role in both an investor’s and entrepreneur’s performance.

The VC-Startup Relationship

Access to capital is no longer a ceiling but a floor for businesses searching for a Venture Capital (VC) company or team. The growing number of alternative funding sources, including the rise in crowdfunding, is one of the biggest trends in funding today and allow startups to be more selective in their choice of VC’s. But considering long-term prospects, it is much more beneficial for startups to find reliable partners in the industry and build relationships with them based on shared values and trust. That is why venture capital is known to be relationship-driven.

Building trust between founders and investors during and after the fundraising process should always be a top priority. And while there’s no low-lift way to do that, advanced technologies can help eliminate risks for both parties.

milestoneBased Ensures Trust Between Startups and VC’s

Digitalization has changed the way we do business. It has also affected the way investors and entrepreneurs collaborate with each other. While technology has distanced us a bit from each other in everyday interactions, blockchain and smart contracts were designed to bring security and reliability back into our business partnerships. 

The core goal of milestoneBased is to drive positive changes in the crypto industry by bringing trust into investor-startup relationships. Our multifaceted platform is designed for venture capitalists, limited partners, family offices, high net worth individuals, institutional fund allocators, startups, and startup advisors. All of these and more can now collaborate on one convenient, intuitive platform.

milestoneBased is unique in that it lets an escrow smart contract be the treasurer for your funds. It controls the expenses, the execution of your planned milestones, and project performance overall. To mitigate investment risks, milestoneBased allows VC’s to exchange tranche funding based upon your project's key performance indicators and a timeline for deliverables. Founders can only receive money from VC’s after successfully fulfilling their KPI’s.

Transparency in Executing Your Roadmap

Transparency in your startup’s performance helps seed credibility in investors’ minds. Our roadmap design tool helps company team members to stay updated and keeps potential investors in the loop, ensuring that they’re informed on the most important events of the project. This way, investors will gain more control over their funds, and startups will be motivated to achieve their goals even faster. Investors can also identify underperforming projects or malicious behavior that hinders progress and not approve the target tranche for the next milestone.

Our platform is built around a DAO-centric approach for simplicity, in which governance is ultimately decentralized. This means that the community manages the platform. Changes made to a specific project, via voting protocols, cannot be made individually to either a milestone or a roadmap. 

To be clear, our roadmap is also not designed for monitoring purposes but to help identify issues before they turn into problems. Its main goal is to make a startup’s performance transparent and thus motivate VC’s to back it. milestoneBased also acts as the front door to the ever-growing online crypto community. Using our platform, founders can talk directly to their supporters 24/7. In addition, they can send information to team members about current developments and goals they’ve achieved.

Our Takeaway Message

The relationship between a VC and a startup is much more than just money. It's about strengthening the relationship early on and continuing to build the relationship even after the raise. milestoneBased improves the VC-startup relationship and post-funding collaborations by harnessing the power of blockchain DAO’s and smart contracts.