CAMPBELL, CA, SEPTEMBER 1 2022: Business capital platform Crowdz has today released a whitepaper detailing the launch of its latest blockchain innovation, Avalon Marketplace.
In a world first, the decentralized finance (DeFi) application for accessing working capital will bring true financial utility to Web3 tools like non-fungible tokens (NFTs) for both institutional investors and small and medium enterprises (SMEs).
The marketplace will also reward both Buyers and Sellers with the Crowdz Token ($CRZ) that Crowdz aims to launch in the near future.
Built on the popular Ethereum scaling blockchain, Polygon, Avalon Marketplace will bring receivable finance and recurring revenue finance processes into the digital era. SMEs and other businesses with outstanding invoices will be able to “tokenize” a receivable by assigning it an NFT receivable marker (“NFTr”) and thereby making the receivable available for sale to institutional investors with either fiat money or stablecoins.
The Avalon Marketplace whitepaper intends to provide information to institutional investors and invoice issuers about the platform, who can also request early access to the platform.
Avalon Marketplace will build on Crowdz’ already successful business model, underpinned by a blockchain, which enables SMEs to sell unpaid invoices, or recurring revenue, for instant working capital from a marketplace of investors. Crowdz has facilitated finance of more than $75 million in working capital for SMEs, with more than 350,000 cumulative receivables uploaded to the platform. To date, the company has also raised $25.5 million in venture capital.
Crowdz aims to unlock $1 billion in working capital for SMEs by the end 2023 and has established partnerships with the likes of Meta (formerly Facebook), Citi, and ProFinCo (currently serving the City of Detroit’s vendors). Avalon Marketplace will also support this mission. l
The whitepaper outlines a number of key features of the project, including its functionality, security, and utility. It also details the Avalon Marketplace native ecosystem token called Crowdz Token ($CRZ) and how its design is expected to promote growth, reward active contributors, and drive protocol governance.
Marc Meyer, Senior Director, Product at Crowdz said that despite the crypto sector experiencing a bear market, Avalon Marketplace is an avenue providing legitimate investment opportunities for institutional players, particularly with shrinking risk appetites.
“The past few months have been rough for digital currencies, but most recognize that there is a future for legitimate Blockchain and DeFi applications, it just hasn’t matured yet. For institutional investors wanting to back the next frontrunners, Avalon allows them to trade tangible real-world assets using fiat or reputable stablecoins.
“We’ve purposely built Avalon Marketplace so that the blockchain that underpins it serves as infrastructure to create operational efficiencies. At the moment, Avalon will only be open to legitimate institutional investors wanting to participate in Crowdz’ existing, successful business model.
“As a result, Avalon Marketplace will adopt several core principles, such as providing sellers and investors the option to decide which currency they use, instead of forcing the use of stablecoins,” he said.
Working with Polygon unlocks low transaction fees, fast transactions, and real scalability, all while leveraging the security properties of the Ethereum mainnet. For Avalon Marketplace, this offers a significant shift in technology and culture, moving the old-fashioned receivables industry, which is centralized, opaque, and still manual, to a decentralized ledger that is transparent, automated, and efficient.
How does Avalon Marketplace work?
Instead of having to wait 30, 60, or even 120 days to get paid, SMEs can release the capital trapped in their books and offboard customer payment risk and delays without risking their credit score.
SME uploads an unpaid invoice onto Crowdz
Crowdz assesses its validity and attaches a SuRF Score (Crowdz’ proprietary risk scoring system) to the receivable
The invoice is minted as an NFTr and made available on Avalon Marketplace
An investor purchases the invoice with either fiat money or stablecoins
Once the SME is paid by their customer the investor receives the full invoiced sum in fiat or with stablecoins
Both the investor and SME receive CRZ tokens for being participants in the ecosystem
How does Avalon approach compliance?
Sellers apply to Avalon Marketplace and undergo strict KYC/KYB procedures, sanctions checks, PEP (Politically Exposed Persons) screening, and credit checks. They cannot sell receivables until this anti-money laundering process is satisfied.
Investors undergo KYC Accredited Investor checks and, upon approval, may connect and fund their wallet using existing cryptocurrency or convert fiat into stablecoins through a fiat on/off ramp. Investors can also opt to personalize and automate their investment experience by selecting a funding limit and risk profile.
For more information on Avalon Marketplace, read the white paper at crowdz.io/whitepaper/avalon-marketplace-a-blockchain-based-receivables-marketplace/
For more information, visit www.crowdz.io/.
Crowdz is modernizing invoice financing and invoicing practices, particularly for small and midsize businesses, to revolutionize the $9 trillion worldwide receivables market.
The platform offers an alternative financing solution for small businesses that often struggle to obtain traditional bank financing. Its technology, by enabling small businesses to sell receivables in exchange for finance from funders, reduces cash flow bottlenecks and gives small businesses working capital to survive and thrive.
Crowdz offers an immediate solution for businesses burdened by extended payment terms of 30, 60, or 120 days and allows them to capitalize on growth and investment opportunities by removing cash flow pains, particularly for a demographic of businesses traditionally underserved by most financial institutions.
Founded in 2014, Crowdz is headed by its co-founder and CEO, Payson E. Johnston, who served for 18 years as global B2B supply-chain Senior Manager for Cisco. Crowdz has raised $25.5 million from investors, including Citibank, Bold Capital Partners, Barclays Bank, EGX, Augment Ventures, Global Cleantech Capital, TFX Ventures, and Techstars Ventures. Crowdz’s technologies are covered by three patents and it has multiple patents pending.
Polygon is the leading blockchain development platform. It is not only carbon-neutral, but is working towards becoming carbon-negative. Developers using Polygon gain easy access to major solutions like L2, sidechains, hybrid, stand-alone and enterprise chains, and data availability. Over 19,000 decentralized apps are hosted by Polygon, with more than 1.6 billion total transactions processes, 142 million unique user addresses, and $5bn in assets secured.
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Source: Company press release.