Initial Coin Offerings raised billions of dollars for start-ups in 2017, more instantly than what IPOs do for big enterprises. These are pretty interesting times and we are witnessing some terrific trends like the Initial Coin Offering (ICO) that provide big boost to cryptocurrency startups as well as established enterprises. Though somewhat unregulated and controversial, ICO has given a much need fillip to countless businesses all over the globe and continues to do so. Quite interestingly, the funds raised by ICO are used across industry verticals and for company wide operations. Keep reading if you want to know more.
Budget and use of funds across industries:
Here’s how you should be distributing its budget across verticals –
Marketing (upto 30% share)
A product post the development stage is one of the most important aspects of any business. Gone are those days when industries used to build anything thinking the customers would come anyhow! This is the age of cut throat competition and you have to shout on the top of your voice, race ahead of your competitors and improvise in order to seek the attention of the customer.
Product Development (upto 35% share)
This one takes the big chunk out of the funds generated through ICO. This essentially makes sense as you need to devote your time, energy and budget for the development of a spectacular product that takes steam out of your competitors. No wonder the product development stage takes the lion’s share of the money raised in this way.
Team building activities (10%)
You need to have a team and that too should be comprised of the best available talent. So team building activities (10 % share) too require some part of the funds.
The staff needs to be kept contended so as to retain them and keep them from running away from your company. Hence companies devote a part of the funds (10%) for retaining staff and other staff related purposes.
Legal purposes (5%)
Legal purposes (5%) such as company registration and other paperwork tend to consume a small percentage of your funds. But ensure that you are doing it the right way lest you want to find yourself on the wrong side of the law.
Misc. purposes (10%)
A closer look at the figures reveals the following:
Marketing of products, both online and offline, remains as important as ever. Only that our focus has by and large shifted from offline to online, but the former remains an important area of concern.
Team building too takes a lot of pain: As seen from the figures presented above, building a team that consists of the best minds in the industry and retaining the team members is no easy task. You need to invest in your resources and give them incentives to stay.