Indeed, ICO investments have greatly influenced the investment decisions of many people across the globe. ICOs have the potential to raise millions of USD for start-up business within a short period, unlike traditional equity shares.
Let’s have a look at the ICOs statistics. Since June 2017, when Initial Coin Offerings became popular, it has provided funding for several brands. For instance, in 2017, there were about 435 successful ICOs which contributed funding amounting to approximately $5.6 billion. About 25% of the total amount raised was aggregated from 10 start-ups.
In 2018, a total number of 894 ICOs have raised funds amounting to $21+ billion. Further, the tokens purchased in these ICOs yielded returns on an average of $10+ the initial investment. It’s therefore, quite clear how ICOs have the power to change the financing process for start-ups. In fact, some experts say that ICOs has the potential to be the future of startup financing.
Understanding the ICO
ICO is simply a new and digital way of raising funds for companies. The companies are required to come up with a unique digital currency or tokens which are then issued to investors. In fact, anyone can purchase these tokens. The amount of tokens purchased by the investors is usually equivalent to the number of shares in the firm.
Generally, tokens are bought using another cryptocurrency like Bitcoin, Dash, or Ether. One factor you should keep in mind though is that not all these ICOs succeed. If they do, you get to benefit a lot, but if not, you lose. There are some benefits as well as risks associated with ICOs. So, choose wisely in case you want to invest in ICOs.
How ICOs raise capital for start-ups
There are several ways on how ICOs can help start-up raise funds. They include;
Exposure to new and potential investors
Unlike traditional methods of raising funds, ICOs can help gain extensive exposure to new customers and users. This way, it can be easy to raise capital more efficiently as compared to traditional systems. Bearing in mind all the hype around the cryptocurrency industry, ICOs can clearly draw a lot of attention. And with the increased awareness of advanced technology like Blockchain technology, more and more investors will want to invest in such companies.
Also, with ICOs you can accept any currency, this can help widen the pool of potential investors and therefore raise more funds.
ICOs, like the cryptocurrencies, are not regulated by any central government. They allow you to come up and dictate your own rules unlike the majority of other fundraising organizations.
In addition, once start-ups offer their tokens for sale, anyone globally can invest in that company. This exposes you to many customers, and you are not limited to your geographical space, especially, bearing in mind that you are free from government interference and other finance institutional rules. If your business shows excellent potential, the more you are likely to get more attention and so more funds.
They raise money cheaper, faster and easier
ICOs allow start-ups to raise capital with less hassle. With your unique digital currency or token, you bypass both venture capitals as well as traditional fundraising methods.
In addition, traditional methods of raising funds for start-ups can be very cumbersome, with a lot of paperwork and processes. All you must do is to create a white paper detailing the project. In most cases, traditional methods of fundraising take about six months to raise money. With ICOs it is not only easier but also significantly cheaper and faster.
Furthermore, ICO investors are more willing to take risks, unlike traditional investors.
Although the process of ICO is still new and evolving, it’s highly unlikely to fade at any moment soon The Boliecoins ICO is presently on and it is an opportunity for you to own a part of the BoliesTV video gaming PVP platform.
You can join the ICO here at $0.50 per boliecoin:
Don’t forget to follow our social media accounts❗⬇️️
Website 🔗: https://boliecoins.com/ Facebook 👥 : https://www.facebook.com/BoliesTV/ Twitter 🐦: https://twitter.com/BoliesTV?lang=en Instagram 📸: https://www.instagram.com/boliestv/ Reddit 🔖: https://www.reddit.com/user/boliesTV Tumblr📝 : https://boliestv.tumblr.com/ Telegram ✉️ : https://t.me/boliecoin Quora✏️ : https://www.quora.com/profile/Craig-Curtis-20 ANN thread 🖇 : https://bitcointalk.org/index.php?topic=4474830.0 Youtube📺:https://www.youtube.com/channel/UCchhvJ7lHnLbKxMT8tOr8oQ