Why launch an ICO? ICOs are an outstanding method for a startup business in the blockchain industry to raise money for their innovations. It’s no wonder that so many companies are adopting this method of crowdfunding. All the success stories of ICOs raising millions is music to the ears of potential business owners. If you’re one of them, you may want to consider doing your own ICO. Before you leap into the action, however, you may want to think about whether or not an ICO is the best choice for your company and industry.
Is an ICO right for your company?
There are many methods to raise funds for a startup service. One of the standard approaches is to court equity capital companies in the hopes that one of them will make it rain money. Although the equity capital route is still used by lots of entrepreneurs, the ICO design is ending up being increasingly more appealing for blockchain-based business. Unless your organization belongs to blockchain innovation and your product and services can incorporate digital tokens, you will more than likely not benefit from using an ICO to fund it. If, on the other hand, you’re developing a blockchain-based service or product, then ICOs are practically the way to enter 2018 and beyond.
What are the alternatives to an ICO?
There are, as mentioned, some options for introducing an ICO for your organization idea. You can go the conventional equity capital route. However, you should anticipate contending with a lot of other startup organizations. You can also attempt to crowdfund your company utilizing other methods, such as Kickstarter. There are likewise risks to avoid if you’re going by doing that. Less than 40% of Kickstarter projects reach their objective.
ICO start-up funding
Now that you’ve figured out whether or not an ICO is the most efficient method for you to raise the money for your startup company, it’s time to look at a few of the other factors to consider. Apart from the approach of financial investment and financing, an ICO is run the same process as any traditional funding round and service launch. It takes a lot of time, energy, resources, and marketing to launch an active ICO. There are also legal elements to consider. ICO guidelines are still in the works and reasonably opaque in the majority of the world. It’s therefore smart to do some research study into the existing laws and policies as part of your preparations for your ICO
Why you should consider launching an ICO
ICOs are by far the fast, most effective, and the most popular way for blockchain start-up companies to fund their jobs. Over 1100 different ICOs has collectively secured over $7 billion in funding this year alone. That’s a great deal of business, and you have every chance to get yourself a piece of that pie. Just keep in mind that it takes investment to make a profit, and running an ICO can quickly cost many of thousands of dollars in research, development, and marketing. If you’re successful, your company could be off to a great start. Remember that giants like Ethereum and Ripple started as ICOs.