Venture capital investment, which used to be heavily concentrated in Silicon Valley, is seeping into other parts of the world, making a greater presence. A startup ecosystem has seen a remarkable progress thanks to the influx of huge investment into Silicon Valley-based startups from China, Middle East and beyond and a growing number of investment deals for overseas startups from US venture capitalists.
The startup ecosystem is so important because they are in stark contrast to traditional businesses in nature as startups are a newly created venture-funded company. Although early-stage investment in startups is least likely to gain return, many investors still find venture capital investment appealing as they would rake in huge profit if they succeed.
In 2018, the venture industry deployed an all-time high of $130.9 billion in the United States where the largest number of investment deals for startups are still made, surpassing the previous watermark of $105 billion from the dot-com era of 2000. This is also a whopping 36% increase year-on-year.
Except for a few countries that have favorable global investment climate such as the United States and the United Kingdom, many countries have a myriad of barriers to making investment: these include challenges related to overseas remittance, complicated process for foreign direct investment and government regulations and restrictions.
Amidst the difficulties, Athlon pays heed to creating a virtuous cycle between entrepreneurs and investors. While it acknowledged that the venture/startup market significantly grew quantitatively, Athlon pointed out the following problems about the funding process. Here, Athlon presents a solution on these matters.
Remittance Operating System
Society for Worldwide Interbank Financial Telecommunication (SWIFT) used by most banks for conventional overseas remittance came into being in 1972. To date, SWIFT has more than 11,000 member companies from over 250 countries and the global remittance market is currently worth about $1.6 billion(KRW 2 trillion).
In the existing SWIFT system, there are 6 stages to pass through for transferring money to overseas:
Remitter – Remitter’s bank – Correspondent from the remitter’s bank– Correspondent from the receiver’s bank – Receiver’s bank – Receiver
Such SWIFT system of today requires frequent involvement of many intermediary banks in the process because not all banks can do Straight Through Processing(STP). After all, this takes up too much time and costs of users and remitters, leaving a burden of hefty commission fees. This commission fees cannot be dramatically reduced despite the banks’ recent efforts of partnering with global remittance agencies, as long as the banks rely on SWIFT codes. Worse yet, the current SWIFT-based remittance system makes it difficult to identify in real-time when and through which banks the remittance has been proceeded.
Athlon skips the process requiring an intermediary or banks’ involvement. To invest in overseas startups, individuals or companies can simply purchase Athlon tokens from an exchange and transfer them to the target startup’s Athlon token wallet. Meanwhile, the startups that received investment in Athlon tokens can sell them at an exchange in their respective countries or cash them out when needed.
Athlon’s process is simple but it saves time and costs for users innovatively. Rather than having to go through multiple banks, the remitter can send the money directly to the receiver, maximizing user convenience by skipping the complicated transfer process. Ahtlon’s approach is akin to how the existing tokens are used as it allows individuals to remit money abroad or make the direct investment into the overseas companies. What distinguishes Athlons from other cryptocurrencies is that Athlon tokens can solve the problem of unnecessary commission fees incurred when Bitcoin or Ripple is used in real life. Take Ripple for example. Banks argue that the commission fees from the conventional overseas remittance system can be saved by about 33% with Ripplenet, but the remitter still has to take up the financial burden to some extent. Worse yet, should a large sum of money be transferred to overseas companies, the burden grows too big to be taken off.
Athlon ultimately aims to increase the usability of the tokens by innovatively reducing the remitter’s commission fees. In addition, it creates genuine value in the cross-border investment sector in the startup ecosystem.
Startups Support System
Moreover, Athlon can become a resource for collaboration between businesses and startups. This will not only promote collaboration among domestic corporations but also allow flexible response to cross- border remittance. Athlon builds its own platform so as to enhance collaboration between conventional companies and startups, creating an ecosystem to engage more companies in such effective collaboration. In this platform, Athlon will support the whole process for all users including companies as well as investors.
Athlon Finance Platform (Crowd Funding System)
Today’s crowdfunding heavily relies on the deal sourcing capability of service platforms and makes practically impossible to raise funds for foreign investment. Athlon solves these problems through the Athlon Finance Platform(AFP), which provides seamless financing solutions between individuals or corporations through:
Enhanced flexibility and scalability of Athlon ecosystem
Access to overseas startups’ data that was not available
Transparent and quick investment process
AFP helps startups attract investment, and individual and corporate investors receive comprehensive investment information regarding promising startups.
AFP deal sourcing is based on the recommendations of carefully selected investors and evaluations from professional accelerators.
AFP serves as an investment platform of Athlon, helping individual and corporate investors access investment information about a wide variety of startups around the world and making it easy for them to invest abroad, which was almost impossible before. Furthermore, Athlon shares a transparent process on highly valuable companies through strategic partnerships with diverse investors and accelerators while expanding the Athlon token ecosystem by financing startups.
A case in point is a partnership service with Hillstone, a global startup consulting firm. Hillstone is a global funding company for startups based in the U.S. and South Korea and operates a global center in South Korea with the US leading accelerator Techstars with whom a total of 1,739 corporations have worked, and Gongsibao that provides 850,000 corporate services across the globe.
Hillstone helps expand the ecosystem of Athlon Finance Platform by offering a wide range of corporate sources and information, and secure liquidity of Athlon tokens by leveraging the worldwide network. With an expanded partnership, AFP will evolve into a global investment platform.
AFP & Athlon Foundation
Athlon Foundation supports the whole process for all users including individual investors and companies through the AFP. In the AFP, Athlon user support is carried out through the following process. When investment is made for overseas startups on the AFP, the fund is sent to the Athlon Foundation in the platform, not to the Athlon token wallets of the overseas startups. With this process, Athlon Foundation can lower the commission fees innovatively because it does not need to use the complex bank networks in AFP, which have been used to make investment into overseas startups and companies. When investors make investment in the platform using Athlon tokens, Athlon Foundation will transfer the funds received in the process of reclaiming tokens to the target company in fiat currency of respective countries, and make a proxy contract on the platform before giving the legally binding contract to the investor. This will lift the burden of hefty commission fees from investors and push the boundaries for investment beyond the domestic market.
In March 2020, you'll be able to meet the best teams and partners.
Rio Adrianto Tan, CEO
Enthusiastic and reliable. Dedicated to providing excellent service and committed to serving as a positive and motivating team leader. Organized, detail oriented, and experienced in properly handling daily accounts and managing inventory. Experienced in managing and training employees, handling financial transactions and accounting, and implementing powerful marketing strategies.
Tolga Demir, CSO
Safira Hanum Asri, CMO
She has many experience in various industries such as marketing and user services and has an excellent marketing career and network. Based on her various experiences, Athlon will be provided a core solution for global marketing and plays an important role in the blockchain industry.