Corporate finance | Strategy | ICO | IPO

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Essentials for successful ICOsMarket trends and recommendations, July 2018

Market trends

The landscape is changing very fast creating more pressure on projects with more ICOs than ever and is growing. The rules of the game are changing and the market is slowly but surely maturing.

Source: Market trends report July 2018 – Chaineum S.A.S

Market trends

✓ Private investors are more likely to hold on Bitcoins or Ethers than investing in risky ICOs even if they represent a higher potential in returns.

✓ As large corporations are entering the market, there is also a growing number of crypto investment funds being created, both from heavyweight such as Andreesen Horowitz (a16z with $300m planned AUM), and other crypto-focused players (Polychain, Metastable). Latest estimate highlights c.250 crypto-funds, managing c .$3.5bn-5bn.

✓ As more sophisticated investors are entering the market, due diligences become stricter but good projects can still benefit from a market that has still a lot of potential.

Consequences

✓ With declining average funds raised, many projects are setting more reasonable “hardcaps”, even among the most ambitious ones.

✓ The private sale phase is also taking a greater importance, with some ICOs successfully raising from 50% to 100% of their targets during this phase.

✓ Some entrepreneurs are also choosing to delay their ICOs in order to benefit from more favourable market conditions in the future, and to permit a longer period for marketing and community building.

10 essentials for successful ICOs

j Ask yourself if your service/offer is really and truly disruptive? Do

you create value for the community? Are you really unique?

k For your service/offer, lead as much as you can all IT development

inside the company, show that you have your own blockchain developer and technical team, this builds trust as you are able to build a service/product, a smart contract, securely and on top of it you control your technology/development.

l Build your legal & financial structure accordingly (tokenomics):

what is the token on the financial side. Outsource the task to specialists, you cannot master all aspects.

m Marketing & communication: build hype around the project, take

your time, do not rush and be really good with your community, answer questions, be present at all times, be closed to your community, show your office, explain what you are doing, do not spam low level value information.

10 essentials for successful ICOs

n Organize and structure your finance schemes before: finding a

bank to accept the money raised through an ICO is a challenge, do it before launching the operation and anticipate how will you convert your crypto raised into FIAT money. You might also have to build a cash pulling center in a foreign country thus creating a legal entity / subsidiary of your own business.

o Prepare your MVP before launching the ICO, investors want to be

sure that part of the service already exists and shall be completed properly in due course.

p Think about the global strategy of the project, not only the ICO,

that’s key for the investors.

10 essentials for successful ICOs

q Build your team accordingly, it is crucial to show that a team is in

place and at work! And do not forget to build a credible Advisory board.

r Organize a first round of finance before launching the ICO, this

becomes the key for investors and will give you the necessary means to go live.

s Plan your roadshow with events that best suits your activity, not

all events are good for your business and prepare a dedicated budget for this. Prepare yourself for a 2/3 months trip around the globe.

Believe in yourself if you want the others to believe in your project and leverage others, give instead of asking….

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