PR: How Blockchain and ICOs are changing the funding game for startups? ⋆ ZyCrypto

The startup economy functions on fundraising. Any idea which is deemed appropriate by investors gets funded, and startups can continue working on the proposed direction. However, getting the funding is one of the toughest parts as startups tend to have a hard time finding the right investors. However, things are changing with the blockchain systems and various ICOs for fundraising.

Startup founders and entrepreneurs are always busy hunting for newer opportunities and businesses that they can set up. Blockchain-based technologies have offered these startups a goldmine! A relatively untapped market till about a year or two ago, today, there has been an explosion in the number of startups bragging about the blockchain technology. However, apart from new technologies and business ideas, startups are also looking forward to ICOs as a new fundraising model.

Entrepreneurs working on blockchain development have a considerably natural means of raising funds compared to traditional startups. It is because Initial Coin Offerings (ICOs) are among the most convenient methods of fundraising for blockchain startups. Millions of dollars can be generated by creating a digital token!

Another significant advantage that ICOs provide these blockchain entrepreneurs is the fact that investing in an ICO does not give an investor any voting rights in the company. Unlike traditional fundraising models where investors get some management rights into the company, ICOs ensure that the complete control remains in the hands of the developers and the entrepreneurs while the funds come from the investors who get returns as the value of the tokens increase.

Some blockchain based startups have managed to raise large amounts with the help of ICOs. ICOs are of particular use because they allow everyone to invest in them. Unlike IPOs, where only accredited investors can invest – anyone can invest into ICOs and make profits from them.

Another thing that works in favour of ICO based fundraisers (which might be a double-edged sword actually) is the fact that in most nations, ICOs are unregulated and there is no governing body – which means that the government interference (for now) is minimal!

ICOs are a lucrative and easy way for startups to raise money. There are a large number of ICOs coming up almost every week – and it gets hard to keep track of each of them, as well as verify their credibility. Websites such as ICOTokenNews help keep track of these ICOs, as well as provide all the appropriate reviews and details regarding all the latest Initial Coin Offerings.

Moreover, the ICO technology too is improving with every passing day. Because many ICOs end up being scams where developers disappear with investor money – a new and improved system, DAICOs is coming up. This system ensures that the investor money is sent out to the developers in parts based on the unanimous decision of the investors. It is a democratic model of ICO fundings – which is beneficial for the entire startup ecosystem and will help reduce ICO frauds!

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