4 Things Investors Look For in an ICO

Brenn
The Startup
Published in
4 min readMar 24, 2018

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One of the jobs we do at BlockSimple is work with private investors to evaluate ICOs on their technical merits, pre-investment.

Before we go further: NO, I won’t introduce you to investors. Especially if you ask. So don’t.

But I can still help you. I see again and again the things that cause investors to pass.

Let’s go into a few of the BIG ones.

Have a coherent business model.

There are an insane number of blockchain startups that have a whitepaper that is jibberish and no clear way of creating renewable value.

A lot of people in this space seem to think it’s irrelevant to have a business model. It’s not. After you raise 10, 20, 40 million USD, how does your company intend to keep producing value and provide an inflow of money?

Blockchain technology didn’t change any real business fundamentals. The world had different currencies and ways of exchange long before blockchain. Perhaps you just added another one but you still need to figure out why people will give over the value…

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