The problem FlashFund solves

Small businesses and solo entrepreneurs often struggle to secure funding for their ventures. In many cases, business owners are forced to dip into their personal savings, which can lead to significant financial strain. On the other hand, individuals who have the capital and interest in funding small businesses face their own challenges. They may find it difficult to invest because the companies are not publicly traded, or they simply do not have enough money to make a large investment.

FlashFund offers a better solution. It takes into account factors like the current valuation, required capital, and more, and then divides the loan amount into fractional "Loan Shares." These shares are available in smaller denominations, making it easier for smaller investors to buy into the loan. Unlike traditional equity shares, Loan Shares do not represent ownership in the company, so there are no complications with government regulations.

When a loan amount is large, it can be difficult for any single investor to contribute enough to cover it. However, by breaking the loan into smaller Loan Shares, multiple investors can each contribute whatever amount they can afford. This approach allows for maximum participation and increases the likelihood that the loan will be fully funded.

When the company is ready to repay the loan, it declares its current valuation, and FlashFund calculates the interest rate the company must pay. The repayment is then distributed proportionally to all Loan Shareholders. If the company performs well, those who hold Loan Shares benefit, as they receive a percentage of the interest pool. The more Loan Shares you own, the greater your share of the profit

Challenges I ran into

As a mobile developer with some limited experience in building full-fledged Web3 projects, it was a bit tough to get everything to work together.