To help crypto-operators assess their need for financing, a new report uncovered the average funds raised by a Blockchain company in pre-launch to ensure its long-term growth and development.
Traditional financing methods
According to the report of the Market Capital platform reported by the CryptoGlobe website, the capital requirements of the Blockchain startups that raised funds from venture capital firms and those that used the initial corner offering (ICO) are not the same. .
For those who have adopted the most conventional funding method, the average funds raised at the various stages of funding is $ 1.94 million for start-up funding, $ 8.8 million for 24.8 million in series B . On average, following start-up funding, it is necessary to wait 16 months for the financing of serie A, 25 months between the rounds of financing of series A and B, announced the site CryptoGlobe.
So, on average, a Blockchain company is expected to raise $ 2 million in its first round of venture capital financing to support its growth for a 16-month period before re-applying for Series A funding.
Fundraising using ICOs
Yet ICO and IEO fundraisers are booming. More than 65% of Blockchain startups and crypto-companies have used these token-based financing methods.
For example, "an analysis of funds raised by startups Blockchain and crypto reveals that up to 47% of startups have raised less than $ 5 million. And less than 5% raised more than $ 50 million " to ensure their market launch, commented CryptoGlobe.
In 2019, several dozen companies that have already made an ICO have also used the Initial Exchange Offering (IEO) to raise new capital, says Crypto-globe.
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