We are going to give you some use cases of the CRWD Network, so that you get a better understanding of its entire capability and its unique features:
- use case #1: a (fictional) SME in the B2B sector, which needs fundings for further growth and therefore runs a crowdinvesting campaign on different local platforms (in Germany) in the CRWD Network
- use case #2: a (fictional) SME selling consumer products, which needs fundings as well as promotion to enter new markets. Therefore the company runs an international crowdinvesting campaign on various platforms in the CRWD Network - to get the required equity plus the marketing effect which come along with the campaign.
Category: small/medium enterprise
Year of foundation: 2008
Revenue 2017: 6 mio. EUR
Headquarter: Rosenheim, Germany
Subsidiaries: Budvar, Czech Republic (production facilities)
Employees in total: 28
The company produces premium furniture and wooden surfaces for smaller retail design-stores as well as for online-shops and B2B-clients, which use the wooden surfaces as parts for their products. For further growth the company aims to raise up to € 2,5 million to invest into marketing/sales and the purchase of several machines. They are focused on the German market, so they are aiming to fundraise in Germany only.
Woodworks is approaching a CRWD-Network partner in southern Germany called “Bavaria Crowd” , which is setting up the fundraising campaign together with Woodworks based on the CRWD Network protocol:
They create a tokenized security offering (profit participation agreement) for € 2,5 mio. where they will get a share of future revenues under German law.
By using the CRWD-Network protocol, the smart contracts for the client are set-up so that the company tokens can be created.
Together, they are creating a fundraising campaign website for their offering in the name of the company (ico.companyname.tld).
Woodworks wants to fundraise everywhere in Germany, so through the CRWD Network they approach several other German platforms to list their campaign on them as well. Three local platforms (for specific regions in Germany) agree on the terms and conditions. The fundraising campaign of Woodworks goes online on those three platforms plus gets featured on CONDA.de with a link to their fundraising campaign.
All platforms will use the same, standardized process to use the smart contracts and will offer the same company tokens to the public. Investors can get whitelisted on any of the platforms prior to their investments. 100% of the tokens represent the whole € 2,5 mio. tokenized security offering by Woodworks.
For the start of the campaign, the smart contracts are deployed on the Ethereum blockchain and are used by all platforms.
All platforms present Woodworks to their crowd and earn their commission for brokerage of the project (everything is automatically done by the underlying smart contracts).
Every single investment is transparently settled on the Blockchain. Users are able to invest in common crypto-currencies as well as in Euro. As soon as an investor sends Ether to the crowdsale contract, they will receive the tokenized equity offering.
After a successful campaign, Woodworks makes the dividend payouts to all investors over the blockchain - easy, fast and secure. Additionally, the company possesses an investor register, with the data of their investors.