The sexy side of an ICO
An ICO (Initial Coin Offering) is the crowd-sale of a coin that is secured on a blockchain-network, most commonly the ethereum or bitcoin platform. During this offering a crypto-coin is born and sold in a public forum.
Entrepreneurs are able to escape the grip and scrutiny of traditional venture capitalists by raising enormous piles of money through their public crowd-sale on their blockchain backed coin, sometimes before they even build a product. As an alternative to traditional forms of raising capital, ICOs provide entrepreneurs with the potential to raise Series C money or higher.
The entrepreneur(s) dictate the structure of an ICO and within weeks, days, or sometimes minutes they are able to raise millions, tens of millions, or even hundreds of millions of dollars through the ICO. And they are doing this all on their terms.
Meanwhile the investors of these ICOs who can range from a newbie in the crytpo space to an accredited investor feel as though they are accessing a seed round investment. Traditionally to get in early on these investments, you had to be in the loop, it was reserved for a select few elitist investors with money to burn. With ICOs anyone with the knowledge and a few extra dollars (crypto coins in this case) can hit it big.
For an entrepreneurial technologist who would rather build a new protocol than a pitch deck, raising money through an ICO is a dream come true. And for people who have always wanted to invest in emerging technologies before they become big, ICO’s are their way in.