One of the core factors that has propelled the popularity of crypto is the abundance of talented individuals that are willing to use blockchain to stretch the limits of existing systems. As such, it is clear as to why the development cycle in this industry is second to none. However, the growing talent pool available in the crypto world also brings with it a stiff competition to get the attention of potential investors.
Hence, this article is a comprehensive guide to ways by which you and your startup can make your project visible to potential investors and get them to buy your idea or product.
#1 The Need for Ingenuity
For an industry that is so competitive, there is no room for unoriginality. The ingenuity exhibited while creating your unique solution to a recurring problem is a vital component of your marketing strategy. Investors will not pay attention until they notice that you have some sort of innovative side to the product or idea you are trying to sell them.
Going for a common trope or playing it safe is one of the reasons many startups fail, even before they begin their journey. Take for instance the many payment solutions that tried to replicate the functionalities of Bitcoin but could not offer unique features. Most of these projects are either irrelevant today or out of business.
#2 It Is Always Better to Have a Working Product
Gone are the days when startups just had to concoct a whitepaper highlighting the potential use case of their products to get the money rolling in. In todayâ€™s market, investors no longer have access to the sort of funds generated during the bull run of 2017. Therefore, they are becoming more prudent in their spending. It is only startups that exhibit a level of seriousness that get a sniff of their money.
That said, it will go a long way if your product is not just words on paper but a platform, tool, or solution that already exists (or is in the late stage of creation). Note that your solution does not need to be perfect, as having a working product indicates that you are committed to what you are doing.
#3 Utilize a Multilingual Whitepaper
The special thing about the crypto world is that there are no boundaries. The community is a closely-knitted network of individuals that ferociously devour information relating to blockchain. Nonetheless, it is baffling that startups do not take advantage of this peculiar nature of the crypto community. For one, startups make the mistake of marketing their idea in either the local language of their home country or in English.
A more effective approach is to capitalize on the multilingual trend sweeping across the investment terrain, which will make your whitepaper accessible to a global community. By so doing, you will establish an impression that you are thorough and that you value the diverse make-up of your audience.
#4 Engage In ICO, STO, and IEO The Right Way
Due diligence is the watchword when capitalizing on the various crowdfunding campaigns popular with crypto investors. You do not want to spend all that money on publicity campaigns and not get the value for your money.
As such, you must research your potential investors and create campaigns that will get them talking. To do this, you could research some of the top telegram channels or forums where investors get information on anything ICO, STO, or IEO. Once you pick your desired channel, get across to the telegram groupâ€™s administrator, and ensure that you supply the information you wish to publish on the channel.
Better still, you can partner with a popular channel like ICO Speaks or Cointelegraph, and have your productâ€™s details presented to hand-picked investors who have shown prior interest in projects that are similar to yours.
#5 Take Note of Your Regulatory Duties
The influx of regulatory frameworks for crypto activities should spur you to take more time to verify that your project or startup is not infringing on existing rules. Rather than find a way around regulations, we have seen, time and again, that the best approach is to work closely with regulators to ensure compliance. Also, the SEC versus Kik controversy is a prime example of how regulators can use words spoken or written to impress investors against nonchalant crypto firms.
In light of this, you should seek advice from your legal team on the acceptable promotional words for your class of investment products. Likewise, it is advisable to identify regions where your product is legal and those that currently have stiff regulations that might restrict you from selling tokens to investors domiciled within their borders.
#6 Get the Attention of Institutional Investors
Getting big-time investors interested in what you have to offer is not an easy task. However, if you believe that your product is innovative and bound to become the next big thing, then you should find a way to become visible to retail investors. More institutional investors are trying out digital asset investment opportunities, as a recent report revealed that 22% of the 400 institutional investors surveyed have gotten involved in investment products relating to crypto.
Moreover, the chances of being appealing to these entities, especially family offices and foundations, increases if your product tackles one or more critical social and environmental challenges.
#7 Be Proactive in The Industry
Naturally, people tend to trust people they know more than total strangers. Therefore, it is more difficult to get people to invest in your idea when they know nothing about you or your brand. The best way to establish your brand is to give it a face and build it around a credible personality. This strategy entails that you become proactive in the crypto community. Similarly, you should capitalize on every opportunity to share your thoughts on important happenings in the space.
The more you put yourself out there, the more people will invest their time in knowing more about your brand.
The post 7 Ways Crypto Startups Can Attract the Right Investors appeared first on NullTX.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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