A successful Token Offering when professional Investors take the upper hand
A successful fundraising campaign is a complicated mixture. With over 50 new ICOs launched every month and complicated market conditions in 2018, standing out is getting even harder.
Countless scams, failed ICOs and valueless tokens have driven many investors away, but the crypto community has never been stronger, it most likely waits for better market conditions. This situation has paved the way for more professional investors to join the game and for crypto enthusiasts to develop their analytical skills and their decision-making process.
How can a project execute properly and keep investors happy?
So how can a project execute properly and keep investors happy? Planning ahead! Setting reasonable milestones of both deliverables and financial results help in driving a project to success while always having something to show to your investors.
On the token side, well, do you really need a token now? Your launch is still months (years) away or you’re still in a pre-revenues phase, so why should you expose your project to risky markets when you could still secure investments and satisfy your believers and investors? It’s no wonder why Equity or Security token offerings are soaring. They help you share the growth and the success of your project with the early adopters who share your vision and understand the obstacles along the way.
At Omniow, we value our clients and the investors we work with, that’s why every project is scrutinized the way a professional investor would do it. We start from the Business Plan, making sure it’s realistic and achievable by the team, and then build the Tokenomics based on that plan. We modelize the life cycle of tokens, stress-test the model and price them as financial instruments to estimate a fair price for both parties, entrepreneurs and investors. While utility tokens have shown their limits in the past months, Equity and Security Tokens created through this process will satisfy professional investors’ requirements in both valuation and payoff structures.
A successful Utility Token, but how?
A top notch website and a tailor-made marketing campaign are still necessary along with a detailed whitepaper and a Yellowpaper when the subject is very technical, but the professional investor tends to look deeper in a project before making his move. The professional wants to understand the vision of the founders and to see the business plan backing that vision. Sound numbers, proper planning and achievable targets are what makes a good project, and a good Token!
Tokenizing the economy is not as easy as it seems, every product or service cannot be converted in a utility token, at least not day one. Not only does the valuation but the usage of the token have to be taken into account, and this has to be done according to the business plan and its milestones. A high quantity of tokens in the early days of a project will result in low velocity numbers, leading to lower (critically lower) prices and unhappy investors. Of course, not releasing all the tokens at once would mean inflationary events in the future as long as a potential risk of lacking funding to achieve the successful execution of the project. Again, unhappy investors.
The tokenization of the economy comes with a great set of customizable tools, and smart contracts allow you to engineer smart financial structuration that keeps the door open for a utility token, when there is an actual use for it. So, no matter what your path is going to be, Utility, Equity or Security, Omniow will help you create the perfect match for the professional investors.