Mitigating Information Asymmetry in Startup investments with 
AI, Blockchain and Contract theory

Integrating AI, contract theory, and blockchain offers a transformative solution to mitigate information asymmetry in venture capital investments. This approach enhances transparency, trust, and investment success. Use this innovative concept to achieve better investment results

Our Vision:

We present a revolutionary framework that leverages AI, contract theory, and blockchain to mitigate information asymmetry in startup investments. 
Enhancing transparency, trust, and efficiency of Venture Capital.

Problem:

The challenge of Information asymmetry:

Information asymmetry occurs when one party has more or better information.

Leads to adverse selection, moral hazard, and principal-agent issues.

Affects investors and startups, resulting in suboptimal investment decisions and outcomes.

Impact of Information asymmetry:

Consequences for Investors:

Adverse Selection

Inaccurate Valuations

Hidden Risks

Moral Hazard

Consequences for Sturtups:

Underfunding

Over-Scrutiny

Misalignment of Expectations

Strategies to overcome information imbalance:

Transparency and disclosure of accurate and timely information

Third-party audits and verification to establish credibility

Building a strong reputation and track record

Conducting thorough due diligence

Structuring clear contracts with aligned incentives

Innovative Solution:

By integrating AI, Contract theory, and Blockchain, we can create a comprehensive framework that mitigates information asymmetry and aligns the interests of both parties.

Combining these technologies, we create 


AI-powered smart contracts that monitor performance metrics and trigger conditions

Blockchain-based reporting ensures secure and transparent information sharing

Incentive structures in smart contracts align interests, such as milestone-based funding and performance-tied equity vesting

Target market:

VC Market (Funds, Angels, Startups)

TAM: As of 2028 – £530 BN and 20% CAGR

SAM: £53 BN 
(focus on UK and US market + probably AI Startups)

SOM: £1,5 BN

Competitors:

AngelList

Large user base, well-known brand, comprehensive services

High competition, limited focus on AI and blockchain integration

Crunchbase

Extensive database, strong analytics capabilities

Primarily a data provider, not focused on active fundraising facilitation

SeedInvest

Regulatory compliance, broad investor base

Limited advanced technology integration like AI and blockchain

Blockstack

Strong focus on blockchain technology, decentralised approach.

Niche market, early-stage development

Republic

Diverse investment opportunities, user-friendly interface.

Broad focus, less emphasis on AI and contract theory

Our platform’s competitive advantage:

Differentiating through the integration of AI,  Blockchain, and Contract Theory

Enhanced Due diligence: AI-powered analytics can process large datasets to identify risks more effective than traditional methods, providing investors with better insights.

Predictive analytics: Al forecasts future performance based on historical data and market trends for smarter investments.

Automated reporting: AI-generated reports ensure timely and accurate information, reducing the manual burden on both startups and investors.

Smart contracts and Blockchain: The use of blockchain technology ensures immutable records and secure data sharing, while smart contracts automate the enforcement of agreements, reducing the risk of fraud and improving trust.

Incentive alignment: Contract theory aligns incentives, improving collaboration and reducing conflicts.

Traction:

We are currently in the developing MVP stage and expect development to be completed in October 2025

If you are interested in investing, please write to us

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AI DECISIONS – 2024