Blockchain SaaS for Automated Reverse Transactions and Compliance
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Solution Overview
Problem
Private equity transactions face challenges such as high fees, illiquidity, fraud, limited accessibility, and complexity, making it difficult for investors to make informed decisions and participate in lucrative opportunities.
Innovation Solution
A blockchain-based software-as-a-service (SaaS) platform that securely stores and verifies investor data, matches investors with suitable deals, and provides real-time transaction records, leveraging AI and smart contracts for efficient deal management and compliance.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If traditional private equity services are used, then investment opportunities are provided, but high fees erode investor returns
Solution Approach 1:
The patent extracts and eliminates the intermediary fee structure by enabling direct peer-to-peer co-investment transactions. The platform removes traditional private equity managers from the transaction flow, allowing investors to directly fund deals through smart contracts without management fees or performance fees, thereby resolving the fee erosion problem while maintaining investment opportunities
Solution Approach 2:
The system enables self-service investing through automated smart contracts that handle deal execution, capital allocation, and profit distribution without requiring expensive professional management services. Investors can independently execute transactions, monitor portfolios, and receive distributions through automated blockchain-based mechanisms, eliminating the need for high-fee intermediaries
2Loss of information
If comprehensive transaction information is made accessible, then investor decision-making is improved, but information scarcity remains a challenge
Solution Approach 1:
The platform implements continuous feedback mechanisms where transaction data, deal performance metrics, and portfolio information are automatically collected, verified, and presented to investors in real-time. The system provides structured feedback through standardized data formats and visualizations that transform complex transaction information into comprehensible insights, enabling informed decision-making while maintaining information accessibility
Solution Approach 2:
The patent replaces complex manual information processing and verification systems with automated blockchain-based mechanisms. Smart contracts automatically execute transactions, record data on the blockchain, and present information in standardized formats, eliminating the need for manual due diligence and transforming difficult-to-access transaction data into transparent, easily consumable information streams
3Productivity
If investment transactions are automated, then coordination efficiency is improved, but system complexity increases
Solution Approach 1:
The patent segments the complex investment transaction process into discrete, independently executable smart contract modules. Each transaction step (fund transfer, capital allocation, profit distribution, exit) is separated into its own automated contract, allowing the system to handle complexity through modular decomposition while maintaining high coordination efficiency through automated execution of individual segments
Solution Approach 2:
The blockchain serves as an intermediary layer that mediates between investors and deal sponsors, enabling automated transactions without requiring complex centralized systems. The distributed ledger and smart contracts provide a simple, transparent intermediary mechanism that coordinates transactions across multiple parties while reducing overall system complexity compared to traditional manual processes
4Reliability
If investor accreditation verification is performed, then regulatory compliance is ensured, but verification time is consumed
Solution Approach 1:
The system performs accreditation verification in advance through automated smart contracts that check investor eligibility before transactions are executed. The platform pre- verifies investor status, financial thresholds, and regulatory compliance requirements, allowing rapid transaction execution without time-consuming verification delays while ensuring ongoing regulatory compliance
Solution Approach 2:
The patent replaces manual accreditation verification processes with automated blockchain-based verification mechanisms. Smart contracts automatically check investor credentials, validate compliance status, and record verification results on the blockchain, eliminating time-consuming manual review while maintaining reliable regulatory compliance through immutable, automated verification
Data Source
AI summary
The present disclosure provides a method for deal management and blockchain execution is disclosed. The method utilizes a blockchain-based platform to securely store and verify data related to investing entities, including their risk tolerance, investment goals, and regulatory compliance. The system determines a subset of entities with shared interests in a specific investment, generating a set of profiles associated with each entity based on historical deal data. These profiles are used to inform investment decisions and monitor portfolio performance. The platform also verifies accreditation statuses of the investing entities through blockchain-based consensus rules, providing an immutable record of investor accreditation status. Additionally, the system provides real-time transaction records to generate accurate and up-to-date reports for investors and deal sponsors, leveraging blockchain-based data storage and verification capabilities.