REDEFINING good or bad? Consider you are CEO of

            REDEFINING THE PRIMARY MARKET /

 FUND RAISING 3.0

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The
most difficult task for any budding as well as established entrepreneur is
raising fund. You really need good connections, communications skills and added
to this you need luck factor also and have to do lots of meeting to close round
a funding which is very inefficient if you come to think of it. But now this
will be slowly changed because of the new buzz/magic word ICO (Initial Coin
Offering). What is that? How this going to be game changer? Is it good or bad?

Consider
you are CEO of start-up which make a app called xyz. App has really got the
traction among the customers and it has gained the considerable market share
over the past few months and now you want to stimulate your growth and recruit
more work force so your looking to raise fund. The options you have is you can
go to VC’s or IPO’s or crowdfunding campaign like kick starter which is
difficult. The other option now you have is ICO. ICO’s are also tough but not
like the other options, even a new born baby company can also get funds through
ICO if they prove their credibility to the world what you intended to say
through white paper. White paper is something like pitch deck in the form of
web page by putting all the details like how your system is going to work, how
token allocation will be done, technical information about your project, you
team members details etc., This one paper should give a broad and clear picture
of your vision and it should give a crystal clear information for the investor
to take informed decision. Unlike IPO’s in ICO’s token or coin will be issued
instead securities. The greatest and significant advantage in ICO is owners
stake is not diluted i.e. the investor who is willing to invest money can
invest only for the particular project only and not in the company. At the same
time each and every movement will be monitored by them and decision will be
taken by them whereas in IPO’s CEO of the company will take decision.

Usually
people expects high returns in short span of time. That is the reason why
bitcoin has gained this much response rapidly. If you have invested $1 in
bitcoin in early 2015 it would have fetched, you around $7420. Mostly these
days’ people thrilled to see 8% returns on their investments, for them $7420
returns feels crazy right. But it is not only the digital currency which has
seen this tremendous growth there are few others and this is ICO is also
related to this only. When in 2017 many venture capital company’s finds
difficult to fund start-ups this give birth to paying the rent with coins to
creating a DIY    patent research tool.
According to the Inc.com cypherium, rentberry, loci, trippki, rightmesh,
experty, nau, coinlancer, fansunite, giftz are the top 10 companies which has
already got ICO or going to get in 2018. ICO has raised nearly $327 million
through fund raising which is very high when compared to usual venture capital.
Anything which comes in a rapid is not good. Likewise this might also can turn
to be like that. People like Sam Alton, President of Y Combinator and Vitalik
Buterin, Founder of Ethereum, etc., feels that it bubble right now and it will
lead zero returns in the long runs. Every matter has negative effect and in
this the major issue there is no regulator. Since there is no regulator chance
of fraudulent is possible and if many projects looks alike or didn’t reach the
expected level then it is of no use. Though many central banks and regulators
are considering about the digital currency except US no other country has
raised the concerns regarding this. Even US has mentioned that it will be
considered as security and nothing more than that.When we look at the things
happening it raises a questions in the mind whether it will be another dotcom
bubble. This skeptic raises because of global financial crisis with every
investment opportunity being labelled as economic bubble including bitcoin. The
important principle in investment is patiently waiting for long time to reap
good benefits. Likewise we have wait for another 10 or so years to see the way
the world using the blockchain and whether ICO, digital currency etc., are game
changer of the economy.

 

 

 

 

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