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Topic: Fund raising through an ICO - page 3. (Read 669 times)

full member
Activity: 566
Merit: 102
April 10, 2018, 03:13:00 AM
#32
Indeed, any company can just start off an ICO rather than coming from a start up but most of them would just resort to stock issuance as it would be a better overall outreach. For most of the part, ICOs are always linked up with start ups as they need funding for the development of their project and it is much easier to raise funds through it rather than by other means.
It all depends on how motivated you are and that how much knowledge you do have regarding the things related to bitcoin and the crypto currencies. In my opinion, investing in ICO is far more secure and beneficial than that of starting off an ICO. You need to be sure that you are doing the right thing and that you need to take guidance from the experts as well before making any final decision.
full member
Activity: 714
Merit: 100
3... 2... 1... Launch!
April 10, 2018, 02:40:31 AM
#31
ICO's are more for technology projects particularly blockchain based

You could try crowdfunding platforms like Kickstart or similar to raise funds for this sort of purpose
newbie
Activity: 238
Merit: 0
April 09, 2018, 01:37:45 AM
#30
But what about my other question? Do security tokens give ownership to the holders like equity shares?

It depends on how well your paperwork is done and whether your jurisdiction considers it legal or not.
newbie
Activity: 238
Merit: 0
April 09, 2018, 01:36:40 AM
#29
Okay so if I go ahead with ICO I would prefer security tokens over utility tokens as utility tokens don't suit my business model. But do security tokens like conventional equity shares offer ownership in the company to the holders? and how will they be different from equity shares if I anyway have to comply with the SEC regulations?

If you plan to give out some equity to backers you can have a holding company or one of shareholders / owners at ICO-friendly jurisdiction with easy (but still solid) shareholding relations. That company will have an ownership in your project and backers will have shares in that company.

If it is a buy-back scheme (where you sell the tokens/coins and later buy them back at a higher price) a good option is to have a different company for such ICO in suitable ICO-friendly jurisdiction. That company will collect the funds, provide a loan to your project, and after your project repays the loan and interest distributes the funds again via coins/tokens buy back.

You can also do this via main holding company in ICO-friendly jurisdiction directly, of course with all needed paperwork for compliance and to prevent any issues with banks and regulators.
newbie
Activity: 11
Merit: 0
April 09, 2018, 01:33:05 AM
#28
But what about my other question? Do security tokens give ownership to the holders like equity shares?
newbie
Activity: 238
Merit: 0
April 09, 2018, 01:25:54 AM
#27
Okay so if I go ahead with ICO I would prefer security tokens over utility tokens as utility tokens don't suit my business model. But do security tokens like conventional equity shares offer ownership in the company to the holders? and how will they be different from equity shares if I anyway have to comply with the SEC regulations?

Well, here you do need a good lawyer and/or choose an ICO-friendly, flexible jurisdiction for your ICO. It is possible to find a really good scheme which will be 100% legal.
newbie
Activity: 11
Merit: 0
April 09, 2018, 01:21:01 AM
#26
Okay so if I go ahead with ICO I would prefer security tokens over utility tokens as utility tokens don't suit my business model. But do security tokens like conventional equity shares offer ownership in the company to the holders? and how will they be different from equity shares if I anyway have to comply with the SEC regulations?
full member
Activity: 368
Merit: 104
April 09, 2018, 01:03:17 AM
#25
Yes its possible some ICO's are already have their products/services before their conduct an ICO and I think its good to do this thing if your business is good. ICO is really meant for this thing, aside from putting an imagination business, I believe more investors will come if there's a business already.
Fund raising and that too through ICO is indeed a very good idea and that this is something which can not only help you in having more money at the end but it will also help more number of people to know more about bitcoin and crypto currencies and that they will surely be able to have a chance of making some good earnings by participating in any of the campaign or by investing their money into ICO.
newbie
Activity: 238
Merit: 0
April 08, 2018, 11:56:13 PM
#24
Is it possible for a company to raise funds through an ICO even if it is not a startup?  Huh  For example: Say company X manufactures chocolates but now it wants to further expand its operations and needs funds for it, can it opt for ICO instead of a Private Equity fund or a Bank Debt?
Please help I am a complete newbie and this concept is confusing me a lot  Roll Eyes
Thanks

Yes, there are cases of successful fundraising via ICO for industrial projects (like zrcoin... And ours will join this list soon https://hpq.io  Smiley) and, moreover, if the company is not a startup and has some history it will be easier to raise because investors will feel more confident with existing business and proven business model and track records.
hero member
Activity: 2968
Merit: 687
April 08, 2018, 11:55:50 PM
#23
Fund raising through an ICO is really Possible but the more investors you pull and be a part of that Project the more stock holders there will be, but if you are lacking money then that would be the way you must do in order for that project to run, but it is better into a certain group to have atleast founded their capital by their own money so that they will not be dependent to the investors, and that is why some ICO eventually doesn't succeed. depends also on marketing strategy.
Case to case basis if you do plan to make use of investors money or on your own money came from your own pocket.Sometimes or there are really instances where possible investors would understand such situation that you havent any start up amounts but will definitely depending if they do saw that your project or plan is really worth to invest on.Sometimes trust and potential profits and developments will matter.If they would able to see how good this thing is then they might able to invest without any hesitations.
full member
Activity: 420
Merit: 171
April 08, 2018, 11:51:17 PM
#22
Fund raising through an ICO is really Possible but the more investors you pull and be a part of that Project the more stock holders there will be, but if you are lacking money then that would be the way you must do in order for that project to run, but it is better into a certain group to have atleast founded their capital by their own money so that they will not be dependent to the investors, and that is why some ICO eventually doesn't succeed. depends also on marketing strategy.
full member
Activity: 462
Merit: 100
April 08, 2018, 08:36:17 PM
#21
It is possible. After creating the coin for such a company and deciding on which blockchain to adopt, people who invest in the coin can have shares depending on the amount of that particular coin they owe. If the company has achieves much success with their project , demand for their coin goes up and consequently prices go up too.
If this happens, ICO investments will become safer and more efficient. I also participated in many ICO projects and I felt very interested in this idea. If there is an organization or type of fund to insure your ICO investments, it is great.
hero member
Activity: 2814
Merit: 734
Bitcoin is GOD
April 08, 2018, 03:56:31 PM
#20
Is it possible for a company to raise funds through an ICO even if it is not a startup?  Huh  For example: Say company X manufactures chocolates but now it wants to further expand its operations and needs funds for it, can it opt for ICO instead of a Private Equity fund or a Bank Debt?
Please help I am a complete newbie and this concept is confusing me a lot  Roll Eyes
Thanks
It is possible but it is not going to be successful, you need to give a reason of why you want to create a coin and what will be the use of that coin so you can get money here in a forum dedicated to bitcoin and other cryptocurrencies, if your idea does not make sense then your ico is going to fail awfully and instead of getting money you are probably going to lose it.
sr. member
Activity: 602
Merit: 252
April 08, 2018, 12:20:41 AM
#19
Indeed, any company can just start off an ICO rather than coming from a start up but most of them would just resort to stock issuance as it would be a better overall outreach. For most of the part, ICOs are always linked up with start ups as they need funding for the development of their project and it is much easier to raise funds through it rather than by other means.
sr. member
Activity: 1667
Merit: 271
April 07, 2018, 05:18:28 PM
#18
Is it possible for a company to raise funds through an ICO even if it is not a startup?  Huh  For example: Say company X manufactures chocolates but now it wants to further expand its operations and needs funds for it, can it opt for ICO instead of a Private Equity fund or a Bank Debt?
Please help I am a complete newbie and this concept is confusing me a lot  Roll Eyes
Thanks

yes, if we see scam projects even collect money... In general.. icos are made targets and they try to collect money. when the targeted softcap or hardcap amount is reached,  they start to work...
but if they are not transparent,
how can we know?
what they are doing?

hero member
Activity: 3080
Merit: 603
April 07, 2018, 03:19:31 PM
#17
Yes it does. It is the main objectives why ICO's are being held and that is to collect proportion from the investors in order to support their project. And in exchange to the investors they are giving tokens as valuable for shares. Once their token is listed investors may claim their profit depending on the value of that company's token.
member
Activity: 322
Merit: 12
April 07, 2018, 03:12:20 PM
#16
It is possible. After creating the coin for such a company and deciding on which blockchain to adopt, people who invest in the coin can have shares depending on the amount of that particular coin they owe. If the company has achieves much success with their project , demand for their coin goes up and consequently prices go up too.
sr. member
Activity: 2366
Merit: 332
April 07, 2018, 03:46:48 AM
#15
Is it possible for a company to raise funds through an ICO even if it is not a startup?  Huh  For example: Say company X manufactures chocolates but now it wants to further expand its operations and needs funds for it, can it opt for ICO instead of a Private Equity fund or a Bank Debt?
Please help I am a complete newbie and this concept is confusing me a lot  Roll Eyes
Thanks

The situation I'm sure is possible in establishing a company. For instance, if the start up capital for the company (depending on whether it is a private or public limited liability company) isn't enough along the line of raising and running the initial start up, the company can apply to the appropriate agency to sell more shares to the public or the company can raise a debenture. This is particularly for a public company.

So I don't think this will be possible for cryptocurrency because it seem different.
sr. member
Activity: 798
Merit: 268
April 06, 2018, 10:35:00 PM
#14
Yes its possible some ICO's are already have their products/services before their conduct an ICO and I think its good to do this thing if your business is good. ICO is really meant for this thing, aside from putting an imagination business, I believe more investors will come if there's a business already.
hero member
Activity: 3038
Merit: 634
April 06, 2018, 07:57:35 PM
#13
Is it possible for a company to raise funds through an ICO even if it is not a startup?  Huh  For example: Say company X manufactures chocolates but now it wants to further expand its operations and needs funds for it, can it opt for ICO instead of a Private Equity fund or a Bank Debt?
Please help I am a complete newbie and this concept is confusing me a lot  Roll Eyes
Thanks
This is why most of the companies listed on a country's stock exchange is doing this thing, they want to expand their business so they are doing fund raising such as sharing stocks to their company.

And by doing an ICO it's possible to gather funds from different investors that are believing their company.

But if a legit company do this, I'm having doubts that they are going to expand. Most of the companies will just look to ICO as profiting power.
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