The current stage of venture capital efficiency stays near the first steam machine. We believe and ensure that our IOU CN DAICO-based approach will increase venture ROI up 3-5 times.

Global venture investment last year totaled $643 billion, compared to $335 billion for 2020—marking 92% growth year over year. (Crunchbase) The current stage of venture capital efficiency stays near the first steam machines (15-17% average ROI). And 90-95% of startups die in 1st year - like 95% of the most valuable "human" ore is dumped. The efficiency of the selection of project teams is comparable to the extraction of gold and rare metals - for example, in YCombinator, only 1.5% of the announced projects pass the initial selection. We believe and ensure that our IOU CN DAICO approach will increase venture ROI up 3-5 times. Developing the metaphor of steam engine and raw material processing, a systematic solution to increase the efficiency of the venture system as a whole will be the transition to the level of oil refining - to the efficiency of an internal combustion engine - 30-40%. And, as in the selection system, from extracting 1% from ore - to “rectification,” as in petrochemistry, when up to 100% of raw materials are processed. Modern ventures are focused on selecting the best teams, and there are few of them. We need to make a system for growing them. From hunting and gathering in the startup market, you need to move to their “growing and breeding.” This could save investors up to $30-50 bln./ year.

Description

IOU CN token is SBT (soulbound token) of project’s founders, a decentralized application in which the founder can issue their tokens - like IOUs - CN (convertible notes) of the project, on the blockchain, of course. That is, all contributions to the project are fixed from the beginning, and the founder can pay with this, for example, to designers, consultants, and coaches. This allows startups to go through the "valley of death" with a significantly lower need for investment money, which increases the sustainability and survival of projects. Then, when the project “ripens,” these tokens can be converted into actual shares in the project under a legal agreement or redeemed from the “earliest” investors. Since everything is transparent on the blockchain, the incoming investor immediately sees how much people have already invested in the project with their work. IOU tokens are made compatible with regular Ethereum tokens. That is, they can be transferred, sold, and traded on the DEX exchange.

Inspiration

Statistics inspire us that more than 90% of startups die in the 1st year, and all investments are lost. Based on CB insights statistics, the Top 3 of these leads for many years: Ran out of cash/failed to raise new capital - 38% (in 2022) No market need -35% Got outcompeted - 20%

What it does

We offer ways to solve these problems based on our founder's and angel's experience and interviews with ~100 angels around the world. We integrated DAICO approach from Vitalic Buterin with IOU token technology. IOU's team recognizes that ‘tokenized IOUs,’ peer-to-peer transactions on the blockchain, can be used to trade value directly for value without fiat currencies or other centralized mediums of exchange. Every echelon of society can benefit from trading value directly for value, eliminating friction and costs such as many fees and regulations imposed by the financial system. IOUs are used as a p2p settlement instrument with little to no regulations or restrictions. IOUs can be issued as tokenized promissory notes via a DeFi dApp by any party, anytime, anywhere, and as per agreement used as payment and exchange of value. Issuers can create their own IOU, tokenized promissory notes, backed by value, goods, or services. To alleviate the double coincidences, wanted goods and services are synthetically represented by tokens that store value and can be traded or redeemed in the future. For trades to be made directly with those that may not know each other, issuers of tokens are rated by their counterparties, creating a reputation-based system. Community members can assist others with good reputations by acting as a surety for them, guaranteeing larger projects like a performance bond and as collateral for loans. IOU will build a community-based scoring system allowing "unbanked" people without "banking" and credit scores to issue their own currencies, borrow, and lend. IOU provides the technology of crowd-resourcing for micro and low-profitable social projects that are uninteresting and ignored by banks and the legacy financial system. This is a starting point of entry and adoption by the market. IOU can be utilized by every economic group from those in poverty to the wealthy.

How we built it

IOU developed a smart contract with ERC20 compatibility. We are integrating this with OpenERP (Odoo), which has a from-the-box ERP with CRM and a lot of yummy yummy things in a freemium package.

Challenges we ran into

IOU is facing the challenges of a self-funded project with a limited budget. The continued refining and evolution of IOU's model to ensure that it monetizes the project without bastardizing functionality, with our main goal of assisting the unbanked and those living in extreme poverty.

Accomplishments that we're proud of

Development of - IOUtoken - ERC20-compatible tokens with feedback and p2p rating functionality, In May 2021, IOU was one of the first to link their project to Metamask and Celo. Recognition of IOU by UABA, Our pilot project with the United Africa Blockchain Association. Once IOU raises the initial funds necessary UABA.io, which is commissioned by the RSA government to assist indigent populations in South Africa, will IOU do.

What we learned

IOU is the desired project. It is imperative that IOU be profitable, strong, and self-sufficient. IOU could use assistance in community building and adoption. Celo is an excellent match with an ideology and community that are congruent with IOU's ideals. Celo provides IOU with technological tools to be functional with Ethereum. #What's next for IOU CN Economy IOU is developing an ecosystem, including: IOUsurety - ERC20 compatible tokens to make a surety mechanism for the project's founders from cofounders to ensure performance on loans and completions of projects, L-angels - pre-launchpad as Uniswap-based AMM decentralized exchange to founders can swap their IOU CNs for stablecoins from investors to reduce cash gaps. Refactor AngelesERP to deeper integration with IOUnomy. IOU will raise the necessary capital as soon as possible to fund the above development, implement pilot programs, and build out its community and user base.