Almost 400 startups launched their ICOs today at the same time. ICO is a popular and powerful fundraising mechanism, which became an even more effective tool than going to VCs. Hype and unhealthy competition for funding dictate its terms for ICO campaigns. It is often said that the key success factors of any ICO are proper marketing. But it is far from being true.
Nowadays the vast majority of successful projects raise funds not from “ordinary” users, but from large private investors. They evaluate projects more meticulously and pay attention to the same moments that traditional investors consider when buying the shares. However, startups founders still suppose that such investors could be attracted by ICO advertising.
Sometimes it could be explained by the fact that young entrepreneurs have a lack of financial literacy. A typical investor does not consider a project, which is at the idea stage. Even to familiarize the investor with the business, it is necessary to provide comprehensive documentation, which must necessarily include a detailed whitepaper.
High-quality documentation will greatly simplify the process of interaction with institutional investors and significantly reduce the costs of a marketing campaign. To increase the chances of fundraising, ALFA Rating provides a full range of analytical services. Our company will help to structure the information and to eliminate risk factors that can significantly affect the investment potential and attractiveness of a token for investors.
It is these companies like ALFA Rating that will contribute to the emergence of new IT companies whose services and products will deeply change both our society and our economy.
Images courtesy of ALFA Rating
The post Why Don’t Startups Need to Spend Money for ICO Marketing? appeared first on Bitcoinist.com.
Original Post: Why Don’t Startups Need to Spend Money for ICO Marketing?