Why Marabou – the Investor’s View

September 28, 2023

To our knowledge, Marabou is the first project using the investment approach as climate action for the target group of the Generation Z – using social media to create an incredibly valuable asset: climate innovation.

Apart from the technical wizards, we have some of the most gifted communicators imaginable. Most of them are exactly in the age of our target group. They know how to talk to people and how to convince them to take action. Everyone in Marabou is here because they want to own their own (climate) future. We are making Marabou for ourselves and we want to take millions with us. 

Marabou’s innovation

We are starting climate innovation at an earlier stage than most VCs – at the idea and talent level. People invest in people after all. That is naturally the most risky investment to make, however, it is the stage where the least amount of money can have the greatest effect. In time, Marabou will become an incubator that can support innovation through all stages of funding and growth. 

Marabou will disrupt currently existing crowd-investing platforms, be it general like StartEngine, green crowdfunding like the Austrian Green Rocket, or crowdfunding for social entrepreneurs and charities. All those platforms come with two major problems that waste nearly all efforts to fund ideas: 

  1. All classic platforms end at the funding stage. Old technology, non-circular economic models, and outdated mindsets exclude a majority of investors and give no incentive to stay engaged.    
  2. No platform comes with an inbuilt community. 

Economic model

All classical crowdfunding/investing platforms run on a non-tokenized technology. There is a mechanism to support a project, with or without equity. The project either fills the funding goal or it doesn’t. When the funding goal has been reached, the use of the platform for the project is over, the community disperses and engagement goes towards zero. As a side effect, this is quite bad for the platform. They have to constantly find new projects to host instead of creating long-lasting relationships. They need high fees (+- 10% of the funding goal plus a downpayment of up to $10,000) for nothing more than social proof and a payment process. 

Marabou builds a tokenized market around the shares. As those tokens are based on an existing and functional blockchain, they can be traded either on Marabou or on the original blockchain, or on any secondary market that wants to list them. The economic model is far superior to crowd-investing:

  1. Investors can buy tokens on the market long after the fundraising is concluded. The project can keep some tokens in reserve and can sell them later to add to the initial funding. 
  2. Active trading keeps interest up in and outside of the community, people are engaged longer, and they can be easier transcended to volunteers, users, or customers. 
  3. Investors have a greater incentive to keep people in the loop which in turn supports Marabou’s goal of educating humans and moving them towards action. 
  4. The project has a greater incentive to give status reports, to make ask-me-anything sessions, and to involve the community. 

Why trad Crowdfunding fails

Every crowdfunding platform tells new projects that they can’t expect the platform to bring investors/funders. The projects must all do their own marketing and community building. The platform is just a payment processor for the financial transactions of the funding rounds. This is a lose-lose situation for everyone.

Every project must create a community-building, marketing, and sales effort from scratch. That is hundreds of marketing teams competing for funders. As a result, many projects don’t get funded and all their effort is wasted. On the other side of the platform, funders who backed one project, rarely invest in a second (1.6 projects per funder on Kickstarter). The platforms don’t benefit from the community the projects bring. 

As a result, classical crowdfunding providers only grow linear and not exponential which would be expected from true platforms. 

Finally, the mechanics don’t help to fund the best innovation but the one with the best marketing. How many great ideas never get funded since their team is sub-par on showmanship? 

Marabou does it different

Marabou takes a different route. We build the community. We spend a big slice of our budget to educate the community on climate issues, climate action, and climate innovation in general. We work with influencers to create a community, we offer participation in the platform. We then not only invite users to back a specific project but to spread the financial love to many. 

Ideally, a project never wants to create its own website as they have a full communication solution with Marabou. (The mechanics work a little like Medium.com for bloggers). Ideally, their social media and PR feedback to the Marabou platform, thus again being circular. 

Finally, this process is far more efficient. Marabou has some of the most talented communicators in its team. Apart from the platform infrastructure, this is our core know-how. Additionally, as Marabou is invested in every single project, we have a great incentive to make them successful in the short term during initial funding and in the long run thanks to impact and IP ownership.

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