The Necessary Funding
This last 18 months have been an astounding time for Blockchain and the latest technologies. It is reported that over $12 billion has been planted into Blockchain and Cryptocurrency projects through various means. There have been many Initial Coin Offerings and Blockchain companies set up. The industry has simply gone from strength to strength and looks set to continue in the same vein. Although it is highly likely that the industries will take off even more as technology improves and more people become aware of Blockchain.
Funding has changed dramatically over the last couple of years with the introduction of Initial Coin Offerings where a project can request funding through a website and White Paper alone. Many are jumping on this bandwagon and setting up their own Initial Coin Offerings. There have been hundreds of these initiatives pop up over recent months especially but whether they stand the test of time is yet to be seen.
However, when you do have the funding it is not all easy and everything just falls into place. The road is tough and you need to fight to keep your head above the water. Large and well known companies such as Uber and Airbnb have received capital in the past and this will likely continue. So what happens next if you do not have the capital that you need? The more traditional routes for raising funds then come into play.
A Great Example
Cryptocurrency Ripple is a prime example of how things are at the moment. It has a circulating token supply of 39 billion XRP. This is a massive amount especially considering there are an additional 60 billion XRP that are not even in circulation yet. If for example Ripple would like to acquire Bankcoin, then Ripple suggests to Bankcoin that it will pay $1.50 USD for every single Bankcoin that is in existence. This is bearing in mind that the Bankcoin tokens are currently worth $1 USD. In this situation, Bankcoin gets what it needs and wants in terms of finance and Ripple acquires a new company and 10 fabulous new developers. So everyone is a winner. This is likely to continue to be a growing trend if companies do not have the funds that they need to continue with their business.
And The Legalities
There is a lot of consider when buying a company and this aspect is not all plain sailing either. Especially within the Cryptocurrency industry, there is very little regulation so a huge amount of research needs to take place before money swaps hands.
So if enough money isn’t in the bank then the options are limited but still out there. A second token sale is not advisable so you can look at either being acquired or going for the more traditional routes of financing. Alternatively finding strategic partners is another good choice. The most important thing is keeping the vision for your start up. Make sure that you see it through because at the end of the day, this is the reason to keep going.