I am co-founder of a cloud security startup. Using our initial seed finding, we built a great product and are getting ready to launch but unfortunately we are running out of funding. So, we are now planning to go for an ICO (Initial Coin Offering) for the next round of funding.
Typically it costs around $25K-$100K to launch an effective ICO. I would like to know if anyone on this forum has experience raising capital launch an ICO. I am considering options like crowdfunding or approaching Angel investors or taking a small business loan.
Please share your experience and/or any pointers you can provide.
Let me put this for you
1. To raise an ICO you need to have a product white paper ready with following.
Address the current problem which your customer is facing.
Provide logical argument and scientific evidence that the problem does exist.
Show some stats and facts again with relevant problem and address them how are you solving them.
2. Second you have to clearly show why people will buy your product? Now see the difference I am talking about product which can be tangible and non. It does not matter.
3. Decide how do you want to provide returns to your ICO investors like in terms of equity or company stocks.
4 Decide which blockchain you want to use there are many actually you can use ETH and build your own but that is not relevant because you are not building a blockchain based service.
5. Do not try to fit Blockchain with your product I have seen a lot of ventures doing this and ultimately failing to provide how does it enhance the features of your offering.
6. Do your math its like now many people will put money on your sweat so you have to very careful with your number.
Actually ICO is more dangerous unless your are not matching your cash flow income and expense. It will take you to bigger ditch.
Cynthia Igodo, you have an idea, what comes next is writing a business plan. Business plans are not are only for sourcing funds, but also for planning your business.
Have you considered an IBO (initial bounty offering) as well?
Hey Faisal, I am an ICO consultant & journalist and I understand your problem. U have successfully organized bounty campaigns for Tron and Sp8de.
You want to raise money for your business through an ICO, but tell me what would I get by investing in your ICO? Is it a substitute for a share in your company? First have the answer for the following else your reputation in the Blockchain circle can go down.
Once you have the answers to this question, you then create a whitepaper. A whitepaper is basically a formal documentation of your thoughts and answers to the above questions.
Now set a release date. Give free coins, do bounty programme ( I can help for a nominal fee ), airdrops and build a community around your ICO. See how many people you can convice on investing in your ICO. It's not easy, it's like starting a new business altogether.
Do not try to fool people as it will backfire on you.
Follow my blog bitcofunds for more news on ICO, cryptos and Blockchain.
1. Have the plan ready
2. Share the plan with people and manage advisor
3. Open up an ICO by creating Smart Contract (ERC20 Standard)
4. Invest in marketing of your ICO
5. After ICO, list your Token to an existing Exchange
Great Thank you Faisal. I will read it. In the meantime let's connect and get on a call, as we all know it's the best way to understand and move forward