On
hacked.com came a fresh review of Acorn, in which the author brought all the arguments for and against:
"
RisksNo product yet. The MVP platform won’t be available until Q2 or Q3 of 2018. Even though the team states they have ventures ready to use it, it’s unclear how legitimate they are and whether they’ll value what the team produces. (-4)
Inexperienced team. The founders don’t have crowdfunding or blockchain experience – the two things the platform revolves around. (-3)
Risky revenue model. A major part of their mid-term revenue strategy is in the Project Incentive Fund and Operations Fund. Banking on a 5%-10% annual return for the Operations Fund is foolish. The Project Incentive Fund is great to get those first users on the platform, but it’s not certain that they’ll stay once the incentives are gone. (-3)
Growth PotentialGood advisor support. The company has a large group of advisors with the skills to help fill the gaps of the management team. (+3)
Untapped market. Acorn is clearly targeting a market that’s vastly underserved. Using this strategy, they could enter the crowdfunding space without having to compete against the big guys. (+6)
Multiple revenue streams. The team seems to be utilizing a “shotgun approach” for their revenue. Testing out different strategies could work well in the beginning and allow them to focus on the most profitable ones as they grow. (+5)
DispositionAcorn scores +4 out of 10. The platform brings a few novel ideas to the crowdfunding space but their good intentions could be their downfall. It’s rare that you see a company that doesn’t have profit as a primary motive succeed. I’m not saying that it’s not possible – just rare.
The project may have a better chance of success if they narrow in their focus in both their overall company mission and the revenue model they use to get there."
Yes at some point I have also asked how the project can suatain growth with free funding. However, all is possible. If the team proves it committment to the community then it will gain trust and thus could help to venture out the project. And along the way, changes can be adopted and implemented essentially geared towards the steady growth of the project.
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