How to organize crowd funding: key aspects of successful ICOs
Startups use an innovative crowd funding method called ICO to raise funds for further development of their platforms. According to the ICO Bench statistics, one launched 1,646 initial coin offerings in 2018. However, not all ICOs manage to succeed. Let’s figure out what aspects affect the crowd funding efficiency and what should be taken into account in order to organize a beneficial ICO.
What is a successful ICO?
The success of ICO determines the achievement of the desired goal: if a company obtains the expected amount of money, crowd funding is considered to be advantageous.
Besides, companies aim to attract not only token buyers but also users who are interested in the product and ready to encourage the platform growth after crowd funding.
Key success factors
The success of ICO depends on both external and internal elements. External factors mean the market structure: a total number of ICOs and investment volume. activity of investors also depends on this.
At the same time, to catch investors’ attention, one should remember about internal factors relating to the product quality.
Concept of the project and method of the blockchain application. Due to the strong market competition, investors are ready to pour cash into innovative projects. A company should find new areas of blockchain application, offer unique solutions, and strive for the technology development.
Moreover, it is necessary to analyze the market and make sure that the project will be in demand.
Business plan and Whitepaper. To conduct a successful crowd funding, it is significant to set well-defined objectives and draw up a plan for product evolution.
Information about the project should be available to the audience: one has to prepare seamlessly a primary document – Whitepaper. It should contain details about the applied technology and financial aspects as well as explain what issues can be solved by the offered product.
Marketing. One of the critical success factors is efficient advertising. It is useful for startups attracting investments to have their own blogs, post information on social media, and actively communicate with the audience.
It is important to note that the audience includes future token holders, which means potential project users.
Development team. Experts engaged in the product development and promotion play an essential role in the project success. The experience of team participants is the advantage in platform advertising.
One more significant feature is the engagement rate of experts in the crowd funding process: for example, participation in conferences and personal conversation with investors.
Juridical compliance. A crucial component in the attraction of investors is the availability of legal and safe project. One should take into account relevant regulatory norms within the country where an ICO is launched.
Attention should be given to the principles of startup registration, rules of token offering and selling, as well as laws on blockchain company operations.
According to Dominik Zynis, a co-founder and the head of communications at WINGS, to conduct a successful ICO, one should make sure that the project is well organized and all the details are thought-out. It is critical to interact with users, while personal attendance at meetings with the audience is a key to success.
The expert believes that investors’ startup capital should be used to organize your own company. Using raised funds, one should solve ICO legal issues and meet with potential token sale participants.
“If a company interacts with its audience via intermediaries, the process can require considerable expenses. To avoid this problem, one should hire skilled PR managers and growth strategy developers,” Dominik states.
The specialist is convinced that one has to listen to feedback from participants and look at metrics.
“Determination and quality team members will allow to achieve any goal. The most important thing is to prepare an appropriate foundation for crowd funding,” Dominik Zynis says.
Dominik Zynis is an advisor on PR, communications, and ICOs. On September 19, the specialist will speak at Blockchain & Bitcoin Conference Kyiv. He will talk about the ICO market condition and discuss future crowd funding trends.