{"id":905,"date":"2023-02-03T14:36:16","date_gmt":"2023-02-03T14:36:16","guid":{"rendered":"http:\/\/78.47.81.216\/?p=905"},"modified":"2023-02-28T13:55:47","modified_gmt":"2023-02-28T13:55:47","slug":"crypto-startup-funding-what-do-you-need-to-fundraise","status":"publish","type":"post","link":"https:\/\/blog.ag.qubiq.cc\/?p=905","title":{"rendered":"Crypto startup funding: What do you need to fundraise?"},"content":{"rendered":"\n
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As of today, crypto-related startups can attract investments through both private equity fundraising<\/strong> and token fundraising. Financial institutions can offer a number of options and services to help startups raise funds via token sales.<\/p>\n\n\n\n

Let\u2019s explore what opportunities of token fundraising are there.<\/p>\n\n\n\n

Loan Provider<\/p>\n\n\n\n

Just like in traditional fundraising, when banks or financial institutions provide loans to small businesses, the same financial institutions can lend funds to DeFi and crypto startups or entrepreneurs. The key requirement for such dApps is to be registered and comply with local or\/and international regulations.<\/p>\n\n\n\n

This type of blockchain startup funding<\/strong> can include business loans, project financing, or even sponsorship of certain activities such as gaming or NFT projects<\/a>. Sometimes, startup investors <\/strong>sponsor projects <\/strong>in exchange for interest, customer incentives or promotion.<\/p>\n\n\n\n

ICO Portal Provider<\/p>\n\n\n\n

Although initial coin offerings (ICOs) have lost much users\u2019 trust after the 2017-2018 ICO bubble, it is still a profitable way to raise funds for a startup. Financial institutions have credibility in the eyes of consumers and can create their own ICO portal to serve as a platform for token fundraising projects.<\/p>\n\n\n\n

There is a growing trend where regulated firms wish to initiate project financing by raising funds via token sales. For example, Thailand\u2019s Securities and Exchange Commission has already approved 5 regulated firms to operate as ICO portal providers: Kubix, Longroot, T-Box, Xspring Digital and BiTherd.<\/p>\n\n\n\n

KYC Provider<\/p>\n\n\n\n

Know Your Customer (KYC) is an emerging practice in crypto that allows dApps to identify users and prevent frauds. As crypto becomes more regulated, authorities may begin forcing registered crypto and DeFi startups to apply KYC to their users. In addition, many venture capitalists prefer to invest in startups<\/strong> that comply with this practice.<\/p>\n\n\n\n

Since financial institutions have extensive customer data and expertise, they can help dApps comply with KYC regulations by acting as an information provider or consultant for startups.<\/p>\n\n\n\n

Launchpad<\/p>\n\n\n\n

Crypto launchpads serve as fundraising platforms that help to raise venture capital funding for startups<\/strong>. Launchpads provide a limited group of investors with the opportunity to engage in early crypto projects before they are listed publicly.  This enables them to buy tokens cheaper, so that they can maximize their return on investment (ROI) when price grows later.<\/p>\n\n\n\n

Nowadays, there are a lot of launchpads which specialize in fundraising of specific startups: DeFi services<\/a>, social crypto projects, blockchain games, NFT arts and music, etc.\u00a0<\/p>\n\n\n\n

Conclusion<\/p>\n\n\n\n

As you can see, VCs and financial institutions can facilitate in funding dApps not only through direct loans and investments, but also with providing services such as KYC consultations. Crypto and DeFi startups today can get a wider range of services and opportunities for fundraising, which indicates that investors see less risks related to digital assets.<\/p>\n","protected":false},"excerpt":{"rendered":"

As of today, crypto-related startups can attract investments through both private equity fundraising and token fundraising. Financial institutions can offer a number of options and services to help startups raise funds via token sales. Let\u2019s explore what opportunities of token fundraising are there. Loan Provider Just like in traditional fundraising, when banks or financial institutions […]<\/p>\n","protected":false},"author":7,"featured_media":906,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[40,38,89],"authors":[37],"class_list":["post-905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","tag-alphaguilty","tag-education","tag-fundraising","authors-alphaguilty"],"acf":{"reading_time":2},"author-name":"AG Content Manager","suggested-articles":[{"ID":730,"post_author":"7","post_date":"2022-12-25 15:12:06","post_date_gmt":"2022-12-25 15:12:06","post_content":"\n

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Even those who don't know or have much interest in cryptocurrency <\/strong>may have heard about NFTs and digital assets<\/strong> at the peak of this field's popularity. When NFTs <\/strong>were at the top, a lot of people, even experienced crypto investors, thought that this was a revolutionary technology. People managed to make huge profits on the creation or resale of NFTs<\/strong>. Popular collections were bought up literally in minutes. If you want to learn even more about NFTs - check out this ultimate guide<\/a> to them by our CEO, Mykhailo Sitalo!<\/p>\n\n\n\n

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So how did the NFT bubble phenomenon appear? Everything was fine and no one even thought about what they were buying and what all these NFTs <\/strong>were secured with. Everyone thought they were so cool and diving into the crypto <\/strong>sphere, investing in digital assets<\/strong> for the future. But, as we know, if an asset is not secured by anything and grows rapidly, the longer and more it grows, the lower it falls. <\/p>\n\n\n\n

Today we will talk to you in more detail about why the NFT bubble has burst<\/strong> and why it happened. Both beginners and experienced crypto-enthusiasts will find useful information that will help avoid mistakes in the future.<\/p>\n\n\n\n

Starting with the basics: what is an NFT bubble<\/strong>?<\/h2>\n\n\n\n

Non-fungible tokens<\/strong> have become popular among investors in crypto, and artists. Each token is unique, which creates its value. Before NFTs<\/strong>, we had no real, simple, and affordable way to distinguish an original computer file (such as a picture, photo, or sound recording) from its copy. These tokens <\/strong>apply as reliable and trustworthy proof of ownership of any digitized object. They are all stored in a blockchain<\/strong>, eliminating the possibility of counterfeiting.<\/p>\n\n\n\n

In other words, an NFT is a virtual digital unit on a blockchain <\/strong>network that cannot be exchanged for another because of its uniqueness. This token <\/strong>can encrypt a digital picture, virtual objects, and even the rights to iconic memes. It started very coolly for the NFT market<\/strong>, but where did it lead? Here it is time to move on to the bubble phenomenon.<\/p>\n\n\n\n

So, what is an NFT bubble? It is the state of an asset when its price rises sharply as a result of increased speculation among investors, and then also falls sharply after the initial rush. Here we need to explain a bit more:<\/p>\n\n\n\n