Should You Launch An ICO?
ICOs are an excellent way for startup companies in the blockchain space to fund their innovations (Read: “What Is An ICO?”), and they’re becoming more popular every year.
All the success stories of ICOs raising millions is music to the ears of would-be entrepreneurs. If you’re one of them, you might want to consider doing your own ICO.
Before you jump into the action, however, you might want first to consider whether or not an ICO is right for you and your business model.
Is an ICO right for your business?
There are many ways to raise funds for a startup business. One of the traditional methods is to court venture capital firms in the hopes that one of them will make it rain money.
Although the venture capital route is still used by many entrepreneurs, the ICO model is becoming increasingly more attractive for blockchain-based companies.
Unless your business is related to blockchain technology and your product or service can incorporate digital tokens, you will most likely not benefit from using an ICO to fund it.
If, on the other hand, you’re building a blockchain-based service or product, then ICOs are pretty much the way to go in 2018 and beyond.
Hackernoon provided a simple flowchart you can use to see if you should ICO:
Are there alternatives to ICOs?
There are, as mentioned, several alternatives to launching an ICO for your business idea. You can go the traditional venture capital route, but expect to compete with a lot of other startup businesses.
You can also attempt to crowdfund your business idea using other means, such as Kickstarter. There are also pitfalls to avoid if you’re going this way — less than 40% of Kickstarter campaigns reach their funding goal.
ICO startup funding
Now that you’ve determined whether or not an ICO is the best way for you to fund your startup company, it’s time to look at some of the other considerations you should make.
Apart from the method of investment and funding, an ICO is pretty much run the same way as any other funding round and business launch. It takes a lot of time, energy, resources, and marketing to launch a successful ICO.
There are also legal aspects to consider. ICO regulations are still in the works and relatively opaque in most parts of the world. It’s therefore wise to do some research into the existing laws and regulations as part of your preparations for your ICO.
Why you should consider launching an ICO
ICOs are by far the fast, most efficient, and the most popular way for blockchain startup companies to fund their projects.
1132 ICOs has raised over $7 billion in 2018 alone.
That’s a lot of money, and you have every opportunity to get yourself a piece of that pie. Just remember that it takes money to make money, and running an ICO can easily cost tens of thousands of dollars in research, development, and marketing.
But if you’re successful, your company could be the next Ethereum or Ripple.
If you think an ICO is the right way to fund your business idea, then head over to “How To Create A Product For Your ICO” to learn what’s required.