these guys are probably looking to raise money via ICO because they can't get it from VC's. Speaks a lot about the state of their business. I would stay out of it.
Hi dacryptomoney - I have heard comments similar to this. The general argument seems to be, if another mechanism can perform the function of the Crowdsale Token raise then perhaps the ICO is not necessary and better suited to the VC market?
In respect of this, I take the opposing view. If the issuance of a Generation Token Event can represent value and the building of same, in an architecture of transparency, without the traditional costs and overheads of legacy systems, then I say, the fit is good and consideration of an ICO mechanism for Capital raising and value appreciation is open to the aspirational. More important than the discussion of ‘token Utility’ is the recognition that for value to be created, within an ICO ecosystem, there needs to be consideration and careful attention to some traditional business pursuits of due diligence, an understanding of unit cost economics and an understanding of the intended business model and competitive environment.
To my knowledge Cappasity have received both Angel investor support and VC support and this would have come with a load of due diligence and forecasting models. Being a entrepreneur and having done the VC dance I welcome a new Capital raising paradigm. The ICO mechanism, per say, has been extremely disruptive to the traditional funding gate-keepers, (VC). Also with VC investment comes dilution at the cost of the Founders, typically with risk ameliorated for the VC. Nice to see companies have a choice now.
I invite you to have a look at the underlying value propositions. I believe the success of Cappasity will come down to three things, (i) execution of the platform build, (ii) the health of the Platform Ecosystem economics, and (iii) the size of the addressable market. Finally an ICO for Cappasity is a perfect fit! Love to hear your comments. Thank you.
