The ICO market is one of the fastest growing, promising and profitable areas for investing in the modern context. But the huge popularity and relative ease of attracting funding leads to a large proportion of fraudulent and simply weak ICOs among interesting and really viable projects.
The RocketICO team offers an effective solution, i.e. adding a mechanism of the round financing model to ICO. This is a ubiquitous practice of venture capital investment in the real sector of economy, which allows you to screen out fraudsters and simply weak projects.
Although the capitalization of the market is growing at a good pace, it is still lagging far behind the volume of the world venture investment. The fact is, large backers are skeptical and even cautiously looking toward even the most serious ICOs with their interesting products. In order to enter the market, large-scale capital needs confidence in competence of the team of every interesting project.
In order to convince the capital of their serious approach to a product development, RocketICO suggests using a round model in which project developers will be able to receive the next tranche of financing only after achieving their intermediate goals. RocketICO is a platform not only for investors and developers, but also for niche experts who will be able to monetize their knowledge and skills to analyze the upcoming ICO.
What will project authors get?
According to the forecasts of financial analysts, the total investment in the ICO market in 2018 will exceed $ 20 billion. This means that the number of ICOs held will become even more impressive. That leads to a rather unpleasant situation for developers. It will be extremely difficult to make your project stand out among many others and inform potential backers of its advantages. To do this, you need to spend a lot of energy, time and money to broadcast your competence in the media space, which means ever-increasing costs of marketing.
The RocketICO platform will allow the development team to gain access to quick and easy financing without unnecessary bureaucratic delays, involving industry experts for independent expertise and evaluating the project’s prospects, and accompanying the entire ICO process with convenient tools for project management.
Placing the project on the RocketICO site will be an indicator of responsibility, reliability and professionalism of the team, coupled with the product’s prospects and potential, because only projects approved by independent experts will be accessed on the platform. Maintaining of your reputation in the eyes of potential investors is the key advantage of financing on the RocketICO platform.
But the key advantage lies in the round model. In 2017, only about one percent of all ICOs in the world reached the stage of presentation of the finished product, although a much larger share of all ICO-projects received full funding. One of the reasons is insufficient motivation of the development team to successfully create the product. When authors receive the entire amount in one tranche, which is often estimated at tens of millions of dollars, they no longer have a stimulus to continue working on the product.
The round model, however, radically changes this approach. The authors will be able to receive funding only step-by-step, which will retain their motivation until the product is fully ready. This approach will not only allow to successfully complete a much larger number of projects, but also reduce the risks of backers, who are often afraid to invest even in prospective projects because of such an unpleasant tendency.
Apart from the advantages that RocketICO offers, this model also preserves all the strengths of ICO, i.e. speed and simplicity that has made this financing scheme so popular in recent years.
What will investors get from the round model?
Crypto currency has gained a lot of popularity nowadays, the ICO market is extremely unpredictable and it is almost impossible to conduct due diligence of the project in order to understand its prospects and potential. RocketICO solves this problem. It gives all investors an opportunity to use an expert opinion, ratings and recommendations from experienced financiers before making final decisions about investing.
Independent expertise of specialists on the RocketICO platform is the bridge across which each person can obtain the most detailed and impartial analysis of each ICO that interests them. On the site, every investor who needs a third-party opinion can be sure not only of professionalism and qualification, but also of the platform experts’ objectiveness.
People with little capital are often willing to take a risk to multiply it, but with big investors it is different. The owners of large capital created on venture capital backing in the real sector of economy do not like unjustified risks and want to invest exclusively in those projects that have already proved themselves effective and shown an interesting product.
Thanks to the round model and RocketICO platform large backers get access to smart investment tools. You can configure the filter to view only those projects that already have a working prototype or even a fully functioning version of the product and want to expand their business.
How does it work?
The platform RocketICO provides a classic number of rounds of funding – there are only five. The first round implies that the team has only the idea of the product. At this stage, the development team can get very valuable feedback on their idea from the community and experts, as well as an idea of the reaction of potential investors.
The second round is the stage of an already developed working prototype that demonstrates the possibilities of the final product. The third and the fourth rounds provide for a minimum viable and fully operational version of the product, respectively.
The fifth and final rounds are suitable for teams that already have a working product, sales, customer base and profit in their arsenal, but they need additional funds for scaling and expansion into new markets.
After achieving the goals and moving into each next round, the team will be able to get the next tranche of participants for product development. It is very important that RocketICO allows for the model some flexibility. The team can start collecting funding from any round, depending on what stage the product is at the moment.