Initial Coin Offerings (ICOs) are a leading source of funds for startups
Embarking on an ICO process is an audacious task. It involves the distribution of digital assets (tokens) on a secure electronic platform. These tokens are a source of financing for a company and its projects, much like investors are a source of funds for Initial Public Offerings (IPO). These tokens are tradeable on exchanges and the price of the token should ideally be linked to the success of the company’s business. ICOs are taking the world of startups by a storm and are an attractive alternative to raising venture capital. Not every business though is suitable for raising funds through an ICO. Careful consideration must be given to the technological, structural, legal, security, marketing and organizational aspects of considering such an alternative. Proteum’s experienced team of advisors can help companies chart a path towards incorporating blockchain into their businesses and exploring if an ICO is a viable financing option.