Token Sales vs. Fundraising From VCs

Over the past two years, investors have seen the benefits of using blockchain and ICO services. In this relatively new world of opportunity, the concept of token sales has likewise been introduced to the public. In this page, you will be able to find out more about token sales and fundraising from VCs and why the former is preferred over the traditional option.



What are VCs?



VCs are all about people who are managing smart money. They contribute not just capital but also expertise, knowledge and connections which investors can make use of. Generally, if you already have good traditional VCs onboard, it will help build your credibility which signifies strength in an ever-growing market.



What are Token Sales?



Token sales, as compared to VCs are opted for by investors looking to generate more funds particularly over 20 million. Token sales allow raising the amount needed with the help of several smaller investors not through those few investors who are ready to fund with a huge amount of cash. Looking at a clearer picture, token sales attract more investors that will become your loyal followers and who will be interested in your success. Having a thousand token holders will be very helpful for the business. It is also considered free publicity using every free marketing tool available for investors.



Deciding on Using Token Sales



Several factors have to be considered to make sure that you can make the best out of token sales for your company. You have to see to it that the provider offers topnotch services among others to help you decide to use them for your own good. Specific factors to bring to mind are:



·         Idea. As much as possible you want the whole idea to be as unique as possible so that more customers will be attracted once you launch your token sales. Find out whether competitors are going ahead against your choice of provider. You also have to make it a point that the idea reaches a potentially big market.


·         Execution. You also have to consider whether the company has reached the development it needs to help you with token sales. You have to make it a point that there are several customers who have vouched for the reliability of the services they provide. Their roadmap to success must also be credible and they must have the willingness to improve their products aligned to your goals.


·         Team. Who makes up the team is just part of the consideration. The important thing to take into consideration is to see the potential for these people to succeed as entrepreneurs. It is important to track their background and see to it that they have really been working hard on their technological aspect.


·         ICO Structure. It is important to make sure that the ICO is structured legally and if there are any legal instructions in other areas around the world. Find out if the structure is supported by a document where all the essential aspects of the project have been highlighted and elaborated.


·         Marketing. One of the most salient factors to consider in token sales is how you can communicate with the team. Find out too if they make use of social media channels where they can place ad campaigns to help market the sale. It is also important to see to it that they reply to your queries whenever you have one.