Finminity Announces a Comprehensive Due Diligence Model for IDOs

A critical step in achieving success for an Investor Services platform like Finminity is alignment and acceptance of companies that it would serve but it presents a unique challenge because the crypto market offers a plethora of choices by its variety of new companies coming up daily and their use case spectrums. It is imperative for us to map their unique needs, their abilities, products/platforms capability & long term goal in order to ascertain the best fit for our community and Finminity’s business goal of safety and long term sustainability.

Sound business model definition, comprehensive business & technical evaluation and objective prioritization of requirements can only be done if there is business rigor to the evaluation exercise. To do this, FINMINITY has formulated a comprehensive yet pragmatic Due Diligence process that it conducts on every company that is onboarded. The idea is to select projects that not only benefit the project participants but also add value to the entire crypto ecosystem.

The process is designed to assess:

1. Project quality (i.e. ability to meet functional, technical & business requirements of the market & with competitive differentiation)

2. Market standing (by verifying project’s Social Media Presence and Marketing Buzz)

3. Ecosystem Integration capability (in terms of strategic partnerships done)

4. Financial Impact (by checking its Tokenomics)

5. Human Capital (i.e., Capable Leadership Team)

6. Intellectual Capital (i.e., Availability of the technology)

7. Know Your Business Check (Company & KYC Checks) and finally

8. Strategic complementarity with Finminity

The first step is to gather the data through IDO Application form by the company. After data is collected, the evaluation is done in 2 stages, and if passed, the company is onboarded as per the process described below.

Step 1: Capture — Project submits the IDO Application

The first step is to gather the data through IDO Application form by the company. They are helped in case of any doubts so as to enter the data correctly, first time, to save delays and reworks.

Step 2: Evaluation Stage 1

The evaluation committee goes through the information, verifies them based on Project quality, Market standing, Partnership and Financial Prudence of Tokenomics.

For Project Quality the innovation of the project, quality of the whitepaper, clear marketing pitch and competitive positioning is checked plus a clear working plan depicted through a roadmap that has been successfully executed. It also seen from the lenses of practicality and market readiness so as to filter away projects that needs more time to market receptivity.

For Marketing the social channels, quality of blog, community engagement and influencers onboarded is assessed. It is also checked whether there are presence of bots and spam accounts.

For Tokenomics, the allocation, vesting periods and lockups, allocation post-TGE, token utility, and security is checked, preferably with a review report of the Contracts.

Once the candidate passes through the above checks, it moves the prospect for the next steps.

Step 3: Evaluation Stage 2

On successful approval from Step 2, Step 3 is started where the project’s key team members are interviewed to understand their business vision, Use Cases, competitive positioning and future prospects of the project. During this phase the actual Development Progress through Github Code Audit and Legal checks like Know Your Business (KYB) is done in addition to proof of any private sale done through VC or Institution.

Step 4: Approval

After all these details are checked, the case is moved to the Executive Team for final approval with evaluation team’s recommendation of any gaps/improvements that needs to be incorporated by the project. The Exec team checks all the details and on unanimous acceptance, the project is flagged off for onboarding. The project team is also provided with a clear recommendation so that the gaps cane be bridged before the IDO date.

How Finminity is Different

1. Technically robust platform for transparent IDO and allow the community to do their own due diligence and rate companies.
2. While the evaluation process is done, Finminity also will help promising companies to bridging the gap found during due diligence through its technical and business experience.
3. Finminity’s extended VC Network and Strategic Partners will be able to bring good projects and also triage for situation which needs their insight and guidance.

Conclusion

While a rigorous checklist, experienced evaluators and comprehensive due diligence process is applied, it should be known Blockchain Tokens is highly volatile and speculative and hence the Purchaser should understand the inherent risks associated with the business and should do his own research about the company and should not solely depend on the platform DD process. Raise capital with confidence and experience the power of Finminity.

About Finminity

Finminity is an innovative Polkadot-driven cross-chain DeFi investor services platform that is flexible, rewarding, and most importantly secures funds through DeFi safety protocols of Value Locks, DAO, and Milestone-based fund release.

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