International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 12 Issue: 04 | Apr 2025
p-ISSN: 2395-0072
www.irjet.net
VENCO - A BLOCKCHAIN BASED STARTUP INVESTMENT PLATFORM Tannishtha Panicker1, Mokshada Patil2, Shristi Pandit3 , Prof. Prajakta Gotarne4 1Tannishtha Panicker, Dept. of Computer Science, UMIT, SNDTWU, MAHARASHTRA, INDIA 2Mokshada Patil, Dept. of Computer Science, UMIT, SNDTWU, MAHARASHTRA, INDIA 3Shristi Pandit, Dept. of Computer Science, UMIT, SNDTWU, MAHARASHTRA, INDIA
4Prajakta Gotarne: Professor, Dept. of Computer Science, UMIT, SNDTWU, MAHARASHTRA, INDIA ---------------------------------------------------------------------***--------------------------------------------------------------------Abstract - Traditional startup funding platforms often face challenges such as high transaction fees, centralized control, and
limited transparency. This project introduces VENCO, a blockchain-based decentralized application (DApp) that enables users to invest directly in early-stage startups they find promising. Built using Next.js for an interactive user experience and Solidity for smart contract development, the platform operates on the Polygon blockchain to ensure scalable, low-cost transactions. MetaMask integration allows for secure wallet connectivity, while Ethereum-based smart contracts automate the investment process—letting startup founders set funding goals and terms. Investors contribute based on their own interest and conviction, and funds are disbursed only when predefined milestones are met, minimizing the risk of fund mismanagement. By removing intermediaries and ensuring transparency, VENCO creates a secure and efficient environment for decentralized startup funding.
Key Words: Blockchain Technology, Smart Contracts, Decentralized Investment, DApp 1. INTRODUCTION The rapid advancement of blockchain technology has revolutionized various industries, particularly in the financial sector, leading to the emergence of Decentralized Finance (DeFi) applications. DeFi eliminates the need for traditional financial intermediaries such as banks and venture capitalists, enabling a more transparent, secure, and efficient financial ecosystem. [1] One of the most promising applications of DeFi is in the realm of startup funding, where entrepreneurs often struggle to secure investments due to the complexities of traditional funding mechanisms. To address these challenges, we propose VENCO: Crowdfunding (DeFi) DApp for Startups using Blockchain, which provides a secure, transparent, and decentralized platform for fundraising. [2]. VENCO leverages blockchain technology [3] and smart contracts to create a peer-to-peer (P2P) funding ecosystem, allowing startup founders to launch campaigns and investors to fund promising projects without the need for intermediaries. The platform ensures trust and security through cryptographic mechanisms, enabling both parties to interact in a decentralized environment. Unlike traditional financial systems, which rely on centralized authorities such as banks or venture capital firms, VENCO operates on a peer-to-peer network, ensuring that transactions are immutable, transparent, and accessible to all participants.
A. Key Challenges in Traditional Startup Funding Traditional fundraising mechanisms for startups involve banks, angel investors, venture capitalists, and crowdfunding platforms. These systems have inherent limitations, such as [4]:
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High Intermediary Costs: Banks and venture capital firms often impose high fees, reducing the actual funds received by startups. Lack of Transparency: Investors often have limited visibility into how their funds are utilized. Security Concerns: Centralized systems are vulnerable to data breaches and fraud. Limited Accessibility: Many startups struggle to secure funding due to bureaucratic hurdles and geographical constraints.
B. How VENCO Addresses These Challenges By utilizing blockchain technology, VENCO ensures confidentiality, integrity, non-repudiation, and authentication in transactions, addressing key security concerns [5]:
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Confidentiality: Investors and startups can securely inter- act without exposing sensitive financial data.
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