Learning to work with institutional investors

Posted by stephen on March 12th, 2020

The opinion that investors came out of the shadow only with the advent of cryptocurrency is fundamentally wrong.  In fact, investment in the purpose of further extracting profit existed even before the blockchain, the invention of the light bulb and even the discovery of America.  But at that time investors looked different, and the agreements on transactions were very specific, but that’s not what we are talking about now.

Nowadays, the relationship of the parties has moved into the digital space, forming a different approach to doing business.  Don’t know how to submit your project in the light of new circumstances?!  – Lucky for you, we are ready to share with you the secrets of remote work with institutional investors.

We take advantage, not ignore them

Project representatives used to go around the offices of companies in order to attract investments, today a startup applies a lot of digital opportunities: starting with communication using instant messengers ending with online video presentations.

Technical progress gives modern society a lot of advanced ideas. While the free time of investors decreases.  Accordingly, the task of the project representatives is to create a short, highly concentrated presentation, “catchy” at first glance.

The small volume allows the investor to quickly familiarize himself with the offer and promptly present his decision.  You must admit if you try raising funds with the help of White Paper alone, which is over 100 pages, – you won’t reach a similar effect.  There are 3 main questions, the answers to which the investor should receive during familiarization with the presentation:

  • What is this company? What place does it occupy on the market, and does it occupy a place at all?
  • What is the essence of the offer and what problem does the project solve?
  • How much money can an investor make?

During the preparation of the presentation, the main thing to remember is that brevity attracts investment.  The capacity of the offer and the quality of the design also play significant roles.

And everyone thought that this would be 2019 trend, but no. After the introduction of STO, an even more secure version of ICO was developed, which is called “IEO”: crypto marketing

The project is verified not only by a third-party organization. Not only the state analyzes the project, the team, and the product, but the exchange itself “stands up” for the project, confirming its viability and importance.

Thus, it attracts the attention of its audience, social networks, all the traders, so the likelihood of “scam” decreases several more times and interest of such projects increases even more. cryptocurrency marketing

The first IEOs were super successful. For example, BitTorrent increased profits and Binance was the trend maker, but later everything changed.

Smaller exchanges began to copy the actions of Binance and conducted their own IEO. All the founders of ICO projects sought to hold IEO as well. Everyone thought that this was a “rescue plan” and the only way to collect a lot of money. Of course, the key beneficiary in this whole structure were not the final investors, not the founders of these projects, but the exchanges themselves. Since they had a huge interest, they take a commission when collecting the money, and in fact, they make a lot of money by offering projects to investors, acting as an intermediary. ieo marketing

The situation has reached the point of nonsense: the exchanges charge non-reasonable commissions. And it turns out that even if the project collects a huge amount of money, it must pay to the exchange and maintain the token price so the conditions become absolutely unprofitable. And in order to raise money, it becomes more profitable to return to the classical conditions, that is, to the classical ICO – without the help of the exchange.

And on the one hand, IEO is more secure, and on the other hand, they become economically ineffective. And the market is now frozen in this state…

But we believe that in the next 2-3 months a new “4th form” of holding an ICO will appear. Because the market is super-dynamic – the “cryptomarket has changed a lot over the year, the marketing market for crypto projects has also changed a lot.

We conducted our own audit of competitors, companies that are also engaged in crypto marketing. There were almost 600 of them… Well, frankly speaking, there were about 600 of them and we analyzed their social networks and found that 75% of them are practically dead, that is, it is possible that companies are still functioning somehow, but most likely they don’t have any traffic; they don’t have any customers, and obviously they don’t have a person responsible for social networks – these companies don’t have a leader. token advertising

Thus, it is safe to say that 75% of companies did not make it through the crypto winter, and those that did – nobody knows how they’re doing. Therefore, this whole story strikes the crypto market as a whole and only the strongest companies survive and become stronger. Everyone who wanted to make money on the “hype” and on some micro-trends – did not survive.

Here are the main two vectors: that is, a certain transformation of IEO into something new and a new approach to “fundraising” as a whole. New competencies required by companies that provide marketing services.

Website: https://flexe.io/

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Joined: April 12th, 2017
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