It wasn’t very long ago that venture-capitalists and banks held power over the money funnelled into any start-up. Today, however, a new type of funding going by the name of Initial Coin Offering (ICO) is dominating the start-up scene and creating waves of growth possibilities for ventures that previously lacked financial backing.
Last night eciotify attended the ICO: Crowdfunding on the Blockchain meetup presented by Cypherstar at Factory, Berlin.
ICOs were described as the latest hype in the start-up scene. But what is an ICO?
An ICO is a crowdfunding initiative that has the ability to generate large amounts of capital in short amounts of time through the issuing of tokens. ICOs are currently non-regulated funding events, however this all is not as easy as it sounds. ICOs when done incorrectly can make a company fall prejudice to tarnished reputations and an ultimate loss in credibility. Therefore the fundamental aspects stressed by the key speakers at the event is that they must be properly authenticated by accompanying white papers, convincing concepts and technological capabilities that ultimately will sway investors and the masses.
Although, if a company manages the above, they will have the opportunity of fast financing and growth. Essentially ICOs allow for start-ups to gain the funds necessary to develop their ideas, gain the exposure of potential investors and grow at a tremendous rate. This stands in comparison to the more traditional venture-capitalist advances or bank loans of the past.
Potentially in the future, all start-ups with concrete ideas that show promise will be able to benefit from a token sale and raise impressive amounts of capital to develop their concepts into tangible objects.
eciotify as a start-up IoT company is interested in the possibilities that ICOs have to boost progress through quicker and more convenient means of funding.
Write us and let us know your take and experiences when it comes to ICOs and start-ups!
