Raising capital for a new business is no small task. Entrepreneurs are faced with several options, including self-financing their startups, taking out a SBA business loan, or seeking angel investors to get their businesses off the ground.
One method of raising funds for a new business or project is to use an ICO, short for Initial Coin Offering, to give buyers a share of your startup by selling crypto tokens in exchange for another form of cryptocurrency. Because ICOs have no regulating body and are decentralized, they are an easy-to-use, versatile option for startups to raise capital.
Still, entrepreneurs should consider potential disadvantages that come with ICOs, namely that they bear significant risk and can be expensive to launch. Prior to launching a campaign, small business owners should keep in mind both the pros and cons that come with using an ICO to fund new business ventures.
See the infographic below from Fundera to learn all you need to know about raising capital with an ICO.