Bitcoin · Cryptocurrency

What are the options to raise capital for launching an ICO (Initial Coin Offering)

Faisal Faruqi

Last updated on January 16th, 2018

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.


Thanks

Saransh Sharma Product Developer

January 16th, 2018

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.


Thanks

Richard Nhimbe Managing Director

January 18th, 2018

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.

Onur GUNDURU Entrepreneur

February 11th, 2018

Have you considered an IBO (initial bounty offering) as well?

john moses CEO

January 16th, 2018

Yea I guest it best if u could go IPO to raise d fund because if u go to angel investor to raise fund a huge part of d company would b required wen it goes public

Ishan Garg On a mission to build the biggest media on Blockchain technology.

February 12th, 2018

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.


  • What is the purpose of the ICO?
  • WHat technology is being used?
  • What will the investor get in return for his investments?
  • Why shouldn't a investor label your ICO as a scam?
  • What would happen to your coin/token after 10 years. Why?

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.



Faisal Faruqi

February 12th, 2018

Ihsan, Thanks for your reply. Please take a look at our white paper which include answer to the questions you asked. www.cloud-fish.io One unique thing about about our ICO is that we are backed by a top tier American university, Georgia Institute of Technology and are an official member of their ATDC Accelerate program. Also, unlike many other ICOs, we have an enterprise products that is ready to be released in few months. Please take a look at our web site and let me know how we can work together.

Paul Sharp Early Investor at Crypto Market. Crypto Lover. Working With Blockchain Technology.

May 2nd, 2018

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

Ishan Garg On a mission to build the biggest media on Blockchain technology.

February 14th, 2018

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