Crowdsales are dead. Focus on ICO private sales.

The long version of this article was published first on LinkedIn on 7/20/2018. The crypto market is evolving rapidly. Check our latest articles here or on our blog for our most recent perspective.

As the Initial Coin Offering market has become more about accredited investors and traditional venture capitalists, the crowdsale is become less and less important. In 2018, most of the successful ICOs became fully funded during their private sale phase alone.

During a private sale, a project’s leaders will show their product to accredited investors such as traditional VCs, hedge funds and large-scale crypto-buyers. The best projects will have a minimum viable product available before the private sale phase begins, funded through angel equity raising, which proves to potential investors that the ICO team is ready to make it a success.

However, besides having an MVP to show off during the private sale, there is a substantial amount of work that needs to be done to prepare.

Craft a compelling white paper

The project needs a complete, researched, legally examined, white paper ready to go before the private sale begins. This will present a problem within the market, and how the project will solve it and will demand the attention of a wide audience of users. The white paper is one of the biggest proof points to investors that the ICOs team knows the market they are entering and are ready to make their project successful.

Determine your legal path early

The next step to setting the private sale up for success is consulting with a lawyer to determine the project’s legal path. With more and more regulations on ICO frameworks around the world, determining its legal path is vital setting its course and protecting it, and its team, from legal ramifications cannot be overstated in its importance. The lawyers will need a final draft of the white paper to pour over and find each and every breach in regulations and make sure it is ready to be presented to the public. This process can take from two weeks up to a month, so proper allotment of time needs to be taken into considering prior to determining when to host the private sale.

But wait, there’s more

Preparing for a successful private sale is a lengthy and difficult process, but each and every step needs to be taken seriously, otherwise the project will be doomed to fail.

Click the link to read our full guide ‘Five things you must do to guarantee a successful token private sale.’

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