If you are starting a new business, raising capital will be one of the most challenging things you will face. Of course, many things will require your time and work. But those things do not compare to the process of raising capital. Raising capital is one of those tasks that can leave you exhausted and even disappointed.
In an Initial Coin Offering (ICO), an entrepreneur has the task of producing a whitepaper. This whitepaper outlines the potential goals of the project, amount of capital needed, potential returns and, timelines. An interested investor will buy virtual currency in a new business with hopes of getting a good return once the new business launches.
This is a bleeding-edge form of investment at its greenlight. It is also one of the most efficient and effective means of attracting potential investors – particularly for a small startup company. But producing this whitepaper is not easy and an entrepreneur will need help on how to produce this whitepaper.
Consultation is very important when forming an ICO. There are many things associated with ICOs and launching requires many services like community management and marketing.
ICO consultancy firms actually offer many services including:
- Initial Coin Offering
- Software Requirement Specification (SRS)
- Research and Development
- Whitepaper Creation (sales pitch for potential investors)
- Advisers and Team Evaluation
- Wallet Development
- Smart Contracts
- Token Design and Financial Modeling
Besides the above services, an ICO consultancy firm will also publicize your ICO in several countries. They help you to translate your whitepaper, website, and announcement into various languages to ensure your ICO has the broadest reach possible.
Business eligibility for an ICO
Before an ICO consultancy firm can take you through the process of launching an ICO, the firm will first determine the eligibility of your business for an ICO. Many startups in this industry fail because they go deep into ICOs without figuring out whether their businesses are eligible for ICOs.
ICO campaigns may be effective, but they are unsuitable for certain types of businesses. An ICO consulting firm will help you determine the eligibility of your business for ICO by looking at several factors including:
- Authenticity, transparency, and value of your business to users
- Originality of your product and whether it can be incorporated with the cryptocurrency
- How your product will attract investors and crypto users
These points are very important because they can form the basis of developing an effective ICO whitepaper.
Factors that impact the success of an ICO campaign
The success of your ICO campaign depends on many factors. But some of the factors that will impact this success include:
The best time for launching an ICO campaign is at least 2 months after incepting the idea.
– Marketing and PR
You must be able to spread the word out there about your ICO. An ICO consultancy firm will help you achieve this by using forums, social media, and influencers.
– ICO consulting agency
It is important to work with an ICO agency before launching an ICO campaign. The agency will help you to hire website developers, ICO developers, marketers, whitepaper writers, etc.
– The Law
Do not break any laws throughout this process
Just like other things in the cryptocurrency industry, the ICO spirit is shaping up quickly. Some informal standards are now the de facto prerequisites to having successful ICO campaigns. The first and the most important requirement for running a successful campaign is generating good value for users. Transparency and authenticity are among the key pillars for the crypto community and this also includes the whole ICO market.
As such, an ICO will not receive positive attention if its goal is to make project proprietors rich at the expense of contributors.
When you are in the process of launching your virtual coin, you should look for an ICO consultancy firm for a consultation. A good ICO consultancy firm to consider is Kryptoia. This firm will work with you and take you through the whole ICO process. They will help you create an effective whitepaper that will outline everything about your new business, raise the capital you need to launch your business and attract investors. Kryptoia also has the expertise to create an effective website for the ICO and associated marketing and PR campaigns.
- Legal Challenges of Initial Coin Offerings (ICO) – https://www.law.ox.ac.uk/business-law-blog/blog/2017/12/legal-challenges-initial-coin-offerings-ico
- Crypto projects that raised hundreds of millions of dollars are being ‘intentionally non-transparent – http://www.pulselive.co.ke/bi/finance/crypto-projects-that-raised-hundreds-of-millions-of-dollars-are-being-intentionally-non-transparent-id8163363.html
- What Makes for a Successful ICO? – https://www.investopedia.com/tech/what-makes-successful-ico/