- DIVI-hub allows crowdfunding for digital entertainment projects;
- With BRL 10, fans with no experience in investments can become “partners” of their favorite Youtube, games, and music channels and be compensated with part of the profit and revenue of these businesses.
The Brazilian entrepreneur Ricardo Wendel and the U.S. financial expert David Farron launch on Thursday DIVI-hub, a platform focused on the creative economy that allows content creators and fans to share the profit of projects.
According to the entrepreneurs, the investment app wants to revolutionize creating, distributing, sponsoring, and investing in content by bringing to the Brazilian market a new category of investment: passion investment (assets based on the passions of the audience).
Thus, DIVI-hub allows crowdfunding in digital entertainment projects such as YouTube channels, games, music and art, while creating opportunities for fans and brands to become investors, being compensated with part of the profits of the content creators.
For BRL 10, fans with no investment experience can become investors in their favorite YouTube, games, and music channels and be paid a portion of the profit and revenue of these businesses.
The money raised serves as funding for the creators’ projects and allows fans to become partners of their idols, generating greater engagement. In addition, fans acquire part of a digital asset, the so-called DIVI, and can be paid according to the results generated by the channel, game, or project.
DIVIs are tokens that function as parts of the creators’ legal property, according to the fintech company. They carry Quantum Ledger technology, developed by Amazon Web Services, in which each token is completely traceable and each transaction has a unique mathematical code that enables transparency and security.
The fintech won the 2019 Most Promising Startup award by Amazon and HubSpot and is part of San Jose University‘s global entrepreneurship program.
The startup‘s idea came from Silicon Valley, but the app’s first market is Brazil. The company hopes to start operations in the U.S. in 2022, but for now, the platform is in the process of adapting its investment business model to SEC (U.S. Securities and Exchange Commission) regulations. Similar to the Brazilian model, the SEC also allows raising funds to the order of $5 million for non-qualified investors, according to the company.
In Brazil, DIVI-hub is regulated and approved by the CVM (Brazil’s Securities and Exchange Commission) under instruction 588. Soon, the fintech plans to launch a private communication platform for trading DIVIs directly between people, where those who bought can resell to other fans or investors, like a creative economy stock market.
DIVI-hub expects to raise BRL 75 million in several projects and have around 100,000 registered fans/investors in the first 12 months of operation in Brazil.