Defactory will test and validate the following blockchain-based solution in the scope of BlockStart:

Defactory is a blockchain-powered lending platform which provides a novel lending and borrowing opportunity for (European-based) SMEs who partially struggling and/or losing market share during the times of the global pandemic. SMEs using Defactory can access prefinancing opportunities allowing them to overcome short term financing problems. SMEs can issue various types of fan tokens in order to keep in touch with their customer base, and they gain cash-inflows while guaranteeing coupons, discounts and additional services later, when they reopen with full-capacity. Later we also plan to launch a secondary marketplace for these fan tokens.

The solution is scalable and viable even after the global pandemic. The application strengthens connection between customers and SMEs, because it builds trust with full transparency, KYC/AML processes and blockchain technology. The coronavirus pandemic led to widespread lockdowns in the global economy. SMEs (as the backbone of the European economy) from various industries suffered deeply during these times, firstly losing customers, then dealing with liquidity problems and struggling to come up with new business models. Damages from losing market and firing employees turn to be hardly reversible. Many SMEs came up with the idea of issuing coupons and long-term bond-like solutions to gain revenues, while core customers and fans were looking for new ways to support their favourite venues (restaurants, coffee shops, bars, concert rooms, theatres, etc.). Defactory team aims to support these small businesses not just during the pandemic, but on the longer term as well with a completely transparent blockchain background, with the opportunity to issue utility tokens to make the lending processes more effective, secure and trustworthy.

Meet the Team

Total funding received by Solidity Services Hungary Kft. under BlockStart: €1,000  for Ideation Kick-off event