4 Best Ways To Raise Funds For Blockchain Startup
Blockchain is getting more prominent recognition worldwide every day. Accompanied with this progress, there are more and more blockchain startups that are showing on the market every day. Raising capital for blockchain startup can be a hard job. Many hours spent on coding, writing a white paper/blue paper, and then testing the product made by the team are just the tip of the iceberg. Blockchain is getting popular in the startup market. Here are a few potential solutions that will help you get your funding for blockchain startup. Maybe you are a new big player in the market.
ICO is a fundraising mechanism in which new projects sell their underlying crypto tokens for other, usually “bigger” cryptocurrency. This model of funding is very similar to IPO, where investors are investing their money, and in return, they get company shares.
ICO is a relatively new term on the market, but in a short amount of time, ICO’s become a dominant topic of discussion in the blockchain community. Raising money for your company through ICO is not the most straightforward job to do because of the skepticism of people to invest and very unregulated securities, but as time is passing by, this solution seems the best to get the money raised when blockchain startups are the one who has to be fundraised. ICO’s, also known as token sales, crowd sales, and initial public coin offerings, is the process of getting funds for a new startup where investors will get a digital token. Digital token is often cryptocurrency which have FIAT money equivalent on crypto exchange. In the photo below, you can see how many millions of $ were invested in ICO’s in past years.
The most hassle-free way to fund your blockchain startup venture is by bootstrapping. Blockchain projects are very often in the position to pool funds together to get the project off the ground. The benefits of funding your startup yourself are that you have no outside shareholders or private investors to answer to.
Venture capital is a traditional way of funding new startups on the market. Startups are usually pitching their innovative idea to venture capital companies which are additionally making the decision if they access to venture capital funding for tech firms.
Having venture capitalists as investors do not mean that your job is done when you get funds. With the proper balance on your bank account, you have to grind more than ever and make the natural growth of your company accompanied by a solid financial return. Important notice is that most VCs are taking a hands-on approach with their investment, which could mean that owner of the company where the money is invested may not be the one who will call the shots on his own.
Crowdfunding is one of the well-known methods of getting funds for startup. Raising capital from individuals can reflect very positively on your business. Crowdfunding is very often made by the online platform where individuals or groups of individuals invest in exciting projects. Sometimes for the exchange of their investment, they get shares in the company.
This is one of the traditional ways of getting capital for business, and there are a few main types of it: reward-based crowdfunding, donation-based crowdfunding, and equity-based crowdfunding.
As the name says, rewards-based crowdfunding is rewarding people who fund the startup. Rewards can be various, from the handwritten letter of the owner to the percent of shares in the company. Mention on the startup’s websites to early access to the upcoming startup’s product is known as one of the most impactful awards. Donation-based crowdfunding is mostly used in the non-profit sector because its name says, it’s donation-based where investors are not getting anything back after investment. In the profit space and profit business, donation-based crowdfunding is a rare appearance. Equity-based crowdfunding is often used in today’s business world. In this model, investors are rewarded with a small share in the company which they are funding. In today, modern world, startups can apply to crowdfund on various online platforms, which can help to get recognition and money for reaching future milestones.
Vitor Services Agency has multiple years of experience in all of the above models for collecting funds for new startups. If you want that work to be done quality and efficiency, contact us to do that job for you. Use promo code “ICO fundraising” to receiving a 7% discount. Contact in telegram — https://t.me/@Vitor_PR
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