SeedOn to cap first crowdfunding release at 20% and let investors vote on delays

Ashton Addison: Give us a high-level view of what you and your team have built at SeedOn.▶ 00:47

Claudiu Minea: Our main focus is building crowdfunding 3.0, based on the blockchain. We plan to have the v1 platform in August, and development is on track. We're waiting on licensing: we've applied as a funding portal in the U.S., which is taking longer than expected because crypto regulation there keeps changing. We're also getting licensed as a crypto exchange in Lithuania, which would let users buy crypto with a debit card. We've put in the paperwork and expect approval in about two or three weeks. On the development side, we released a wallet solution on April 25 that offers staking and investing for our community. We realized we could reuse those components for the main platform and offer them as software as a service to other projects.

Ashton: Is SeedOn focused on crypto fundraising, or is it an all-purpose crowdfunding platform?▶ 04:05

Claudiu: It started as a crowdfunding platform focused on equity and donation-based campaigns. SeedOn Finance then came along and is developing into a launchpad. They are two different solutions. SeedOn Finance is for crypto, and SeedOn Venture is the platform for conventional crowdfunding.

Ashton: What is the main problem with conventional crowdfunding, and how do you address it?▶ 05:30

Claudiu: Crowdfunding has two sides: the investor, who puts money into a new idea, and the entrepreneur, who has to turn it into reality. On a conventional portal, if the campaign hits its pledge goal the company receives the capital, and otherwise investors are refunded. After that, you have no visibility. A few months later you can get an email saying the startup ran out of money and can't deliver. We want to fix that with a smart contract escrow model. Because we use the blockchain, we can trace every investment transaction: how much has been raised, and when and how much is sent to the entrepreneur. We also control how capital reaches the startup. Alongside the pitch deck, a startup must submit a roadmap with at least three implementation stages. Each stage has defined milestones for a set period, and a percentage of the capital is allocated to each one. The first stage can't take more than 20 percent, which reduces the risk of fraud and rug pulls. Once the raise is complete, the startup gets that first tranche and works on its milestones. It submits proof to our team, and when the milestones are verified we trigger the next release.

Ashton: What happens when a startup can't hit a milestone for reasons outside its control?▶ 08:37

Claudiu: That's why investors are involved in some decisions. Say you're building an electric bike, and your first stage has three milestones: a mass-production certificate, an MVP built at a factory in China, and a demonstration at a worldwide conference. You get the certificate, but then a pandemic closes the factories. You go to your investors, explain that the delay is out of your control, and ask to move that milestone to the next stage. The investors vote on whether to move it or drop it. Some may decide the context has changed and the idea is no longer viable.

Ashton: What role does the SeedOn token play? Is it required to invest in projects?▶ 10:28

Claudiu: The token acts as the medium for each investment transaction. We're targeting both crypto investors and regular investors who may not know the crypto industry. Crypto investors deposit tokens into the wallet, swap USDT for our token, or buy it with fiat, and then browse campaigns and invest. A regular investor finds a project they like and pays with a debit card. Behind the scenes, we rely on our token for all investment transactions: we convert the fiat to the token and send it to the escrow account on the blockchain. Each campaign has its own wallet, so you can see what goes in and what comes out. We chose a blockchain with lower gas fees because of all these back-and-forth transactions.

Ashton: Is the regulated exchange only for trading the SeedOn token, or are you building more than that?▶ 13:12

Claudiu: It lets people exchange the token for fiat and vice versa, and it also serves the launchpad. There, we want to build an ecosystem that takes crypto projects from the white paper stage to listing. We have partnerships with a few exchanges and market-making solutions that we're not announcing yet, and projects will get a discount on those services. Projects will be able to sell tokens for fiat or for deposited crypto in the ICO stage, offer staking to their users, and then list on a public exchange.

Ashton: Many launchpads are appearing. What will set yours apart?▶ 14:49

Claudiu: First, buying crypto with fiat. I haven't seen many launchpads offer that, and I think it's a good addition. When we ran our own ICO, investors sent us crypto, but I would have gone with debit card payments too. Second, an informative source for the industry, with events and news, which I think is a nice addition for a launchpad. Third, the partnerships with exchanges and market-making solutions, to make launching on the market easier.

Ashton: What needs to get done for the main platform to launch in August?▶ 16:18

Claudiu: The software solution is ongoing, and we're in very good shape on development. An unplanned launch of SeedOn Finance pushed us to build the wallet and transfers at a higher pace, so the core functionality is already in place. I expect the debit card panel to be ready around the end of June, once we're licensed as a crypto exchange. What's holding us back is the funding portal license in the U.S. In a few days we'll release a new website with a form where entrepreneurs can submit projects. That lets us review pitch decks and start selecting, so the first crowdfunding campaigns are ready to go live in August.