Raising money for a new business venture can be one of the most difficult parts of entrepreneurship. Business owners are tasked with navigating various funding options, including bootstrapping their startups, taking out a short-term business loan, or seeking VC investors to raise capital.
One alternative method of raising funds for a new startup or project is to use an ICO, short for Initial Coin Offering, which grants buyers a share of your business by selling crypto tokens in exchange for another type of cryptocurrency (usually bitcoin or ether). Since ICOs have no regulating body, anyone can launch one as long as there is a white paper created detailing the project. ICOs are an easy-to-use option for startups to raise capital and see significant ROI.
However, business owners should consider potential disadvantages that come with ICOs, especially that they can be particularly risky. Entrepreneurs should carefully consider both the pros and cons that come with using an ICO to fund new projects.To learn more about using an ICO to fund a new business venture, check out the infographic from Fundera below.
Please include attribution to Fundera.com with this graphic.