In 2002, a wall street analyst working on a side project had trouble raising money for a side project, a off-Broadway production of an Arthur Miller play. The play was a critical success, and a commercial failure. The analyst decided it was time to find alternative ways to fund things like this.
Out of that seed, IndieGogo was founded, one of the first of the crowdfunding sites that have sprung up in the last decade and transformed how we think about funding projects. They have democratized the funding of arts, sciences, entrepreneurship, and even in some cases, paying medical bills or taking the family on a long-wished-for vacation.
HackSpace Capital is a new initiative hoping to join this great innovation with blockchain technology and begin funding the development of ideas and technology that will revolutionize the world, again and again.
So What Does HackSpace Capital Do?
They are an investment firm focusing on providing funds and support for projects that have developed their products to be near-ready to launch to the broader public, but lack the funds and expertise necessary to really get themselves going. HackSpace Capital stands ready to provide help in getting production lines ready, create branding and advertising campaigns, provide managerial consulting and organizational support, provide legal support, and more.
Where Does HackSpace Find Out About the Projects They Support?
HackSpace has partnered with a EnCata, short for engineering catalyst, a worldwide product development support service, geared to taking products from the ‘good idea’ phase through mass market production. EnCata specializes in creating one-stop shops for development that combine all the talent and equipment necessary to design, prototype, test, and perfect any type of product.
Once a product has gotten to near-production level quality, they require an infusion of cash to do all the things mentioned above – set up factories, create advertising, handle legal and business issues, etc. HackSpace has an agreement with Encata to get a first look at projects coming out of their pipeline and stands ready to provide the cash and expertise to get those projects over the finish line.
Good for Them. What’s That Got to Do with Me?
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Well, each of these projects will require a capital infusion of between five-hundred-thousand and two-million dollars. HackSpace plans on raising the necessary capital by offering an ICO of their HAC token. Unlike KickStarter or IndieGoGo, an investor who buys HAC tokens is not investing in one project, which may or may not ever get to the production stage. He or she is investing in all the future projects supported by HackSpace as long as they own HAC tokens.
As the different products begin to roll off the assembly line, HAC holders will have the ability of purchase them at 20% off the price they’re being offered to everyone else. This is a significant advantage over the KickStarter model where you only get what the project promises if it ever comes to fruition. Further, the 20% discount on sale price will provide a solid backing to the continued value of the token, which will also be freely tradeable for any other digital currency.
Wait. How do I Know These Projects Will be Any Good?
That’s another advantage of working with Encata. In order to be eligible to work with HackSpace, a project’s team must work with EnCata and HackSpace for three to six months so that that their maturity, acumen and commitment can be gauged. Also, but working the EnCata development and production teams, by the time a project is HackSpace ready, everything possible to be known about the product and its potential will be known. These project managers are not simply doing a 20-minute presentation for investors Shark Tank style. No, they will be known inside out.
What Kind of Projects are They Working on Now?
Right now, projects include innovative ways to generate energy, powered exoskeleton suits, and sleep capsules.
How do I get ahold of the HAC tokens?
On September 19, HackSpace will be holding an ICO. 51% of all token will be offered for purchase to the public. A further 29% will be distributed across the fund’s current and future projects. 5% will be distributed to advisors and consultants and to create bounties and marketing campaigns. The remaining amount will be reserved for HackSpace management and employees.
HackSpace has set its sights on revolutionizing the crowdfunding system, and to give a critical boost to geniuses and entrepreneurs with the ideas but not the resources of expertise to get their ideas ready for the market. This is not multinationals developing in-house what they think we need. This is people developing what they know we need, and being able to keep the rights to and profits from their hard-developed ideas.