Raising money to fund a startup can sometimes be an uphill battle – just because you can see the potential, doesn’t mean that everyone else will as well. And let’s not get started on bank loans – if you can prove you don’t need the money, you’ll probably get it. But then why would you apply in the first place?
It is a conundrum that can be difficult to solve and one that forces a lot of businesses to start off with a shoestring budget. For some people, ingenuity wins the day, but a lack of operating capital is something that can cripple a new business quickly.
But are there other options for startups? Over the past few years, we have seen an increase in less traditional startup funds, like angel investing, crowdfunding and, most recently, ICOs.
Raise money with Initial Coin Offering (ICO)
ICOs are possibly the easiest form yet. Do the research, create your whitepaper, and market tokens. These tokens can either be used to pay for services within your project, or traded on the cryptocurrency exchange btxchange.io later.
This gives new companies easier access to startup cash. There is a lot of interest in ICOs as an investment at the moment, but you do have to do your research upfront. The cryptocurrency sphere is largely unregulated at the moment and there are a lot of scams.
So, you do have to work to first convince investors that you are not a scam artist before you get to convince them that the idea is a winning one. That means putting in a lot of hard work before you launch your idea into cyberspace.
You will have to do some serious market research and feasibility studies to ensure that you come up with the best business proposal possible. But that extra work increases the chances of success for your business in future anyway, so it won’t be a wasted effort.
Infographic: ICO roundups
Do you want to learn about how ICOs can help you reach your funding goals? Check out the infographic for more information.