To date, in the IT segment there is a confrontation between two forces — classical venture capital and a relative “newcomer” — ICO. We #offer to compare the advantages and disadvantages of each tool and talk about the future financing of start-ups.
✅ICO is an excellent tool for young and ambitious teams with a #greatidea.
The advantages of ICO also include the opportunity to form a community of future users, developers and partners for the project. On the basis of traded tokens an ecosystem is formed — #investors can not simply store tokens as assets, but also use them within the platform.
The ecosystem for projects with social mechanics is also especially important. In such cases, the ICO solves several problems for #startups at once — it also provides funds for the implementation of the tasks set, and the opportunity to form the basis for the development of the project.
⚖️Unlike ICO, venture funds actually become co-owners of business. Often they can influence the life of the company in its interests — block deals, appoint directors and so on. Sometimes this can save the company from collapse, but with the same success, it can lead to its death. The funds, like the holders of the tokens, are interested in maximizing the profit of portfolio projects, but the venture has its drawbacks. There are times when investors are zealous with the right to participate in the life of a start-up, and there are conflicts with the team. Do not forget that in comparison with ICO #ventureinvestments are more difficult to obtain — it is necessary to prove the viability of your project.
ICO in the moment can show very #goodresults. Sometimes it’s about a thousand-fold profitability in the shortest possible time. In the venture, the same figures are much inferior to #investments in #tokens. In addition, tokenization in the ICO solves one of the main problems of the venture — liquidity.
⏳What is more promising is for you to decide.
But #maybe in 10 years people will not have a question whether they invest in tokens or in equity — a single #financial instrument will be formed on the basis of the block-account, which will be an effective and safe solution for financing the business and solving many problems.
