How to Find Blockchain Investors for Your Next Crypto Project
Blockchain technology is one of the most feature-rich innovations in the financial sector. It unlocks capabilities that increase access to financial services and a new form of currency, the digital coin. At the same time, it comes with its fair share of shortfalls, including understandability to the average person, scalability, and volatility of digital currencies. For these and more reasons, finding investors in new cryptocurrency projects is not a walk in the park.
Most investors are risk-averse and will only back projects that seem viable from the beginning. It’s always good to brace yourself for some rejection, although you are sure to attract worthwhile investors with a great plan in place.
Here are a few quick tips for finding blockchain investors when you have a new crypto project.
Identify The Clientele and Source of Revenue
All investors want to be sure that they will earn income from their investments, so the revenue is a crucial subject of discussion when attracting investors. Every investment is a risk, always characterized by uncertainties. If you have a new crypto project, it’s upon your team to convince the potential investors about the potential returns.
Blockchain technology is new and quite complex but carries a great potential for returns on investment. Therefore, projects with ready clients and realistic projected income will generally attract investors for you. A comprehensive whitepaper and a strong marketing campaign is all you need, and wait for potential investors to reach out.
Projects that can solve the current blockchain problems, such as scalability, the consensus mechanisms among distributed ledger networks, and volatility, promise investors a ready client base and fast revenues.
Running an ICO
An ICO is an activity carried out in the blockchain and cryptocurrency space meant to raise capital for a start-up. It is similar to initial public offerings, although it uses cryptocurrencies rather than fiat currency.
An ICO creates a direct connection between a company launching a new cryptocurrency project and investors. ICO’s can be private or public, whereby a private ICO links a specified group of investors to the project. It could be individuals with a high net worth or financial institutions.
Public ICOs, on the other hand, will attract the general public, and anyone can become an investor in the project. Most ICOs begin with the company identifying the objectives of the project and communicating them to potential investors. The company then creates tokens, which are representations of value in the blockchain.
Investors get issued with the tokens, and they can use the product or service launched by the company or wait for their assets to appreciate. The ICO event can, therefore, become a source of capital and investors for the project.
Blogging
The cryptocurrency industry is entirely virtual, and this makes blogging an invaluable strategy for winning investors into a blockchain start-up. Blogs allow blockchain engineers an opportunity to draw attention and share their stories with potential investors. Developers can have a website for the project, publish all project details, or publicize their crypto project via Cryptoadventure.org.
If targeting institutional investors, you could even go to their website and engage them in the comment section. A thoughtful comment is likely to draw their attention, and you can build a relationship from there.
Social Media
Social media is a leading digital marketing strategy that gets your project out to the public and lands you potential investors. A high social media presence helps spread the word out about the new project, quickly drawing blockchain enthusiasts to it. The aim is to get noticed by potential investors and have them reach out for more details.
Project teams can take active roles in posting updates on platforms and pages. You can also find potential investors’ profiles and pitch them or leverage influencers’ high social media presence to your advantage.
Blockchain Conferences
There are several blockchain conferences and networking events around the world where discussions about the blockchain ecosystem happen. The Blockchain Expo North America is among the expected 2021 events with an expected turn up of more than 10,000 attendees. Such events attract various entities, including other technology providers, governments, and potential investors in new blockchain projects.
Developers can secure an opportunity to provide insights to attendees and unveil their innovation. It is an excellent opportunity to meet and actively discuss with potential investors about the project. The internet can always provide details about upcoming events, so you can scour relevant websites to see conferences likely to attract interested investors.
Conclusion
Bitcoin was the first blockchain project, and Satoshi Nakamoto was quite successful in it. Today, investors pour money into different cryptocurrency projects, although it does not mean they channel their funds into every other blockchain project with the same energy.
The new technology is earning impressive returns for many, but only if the investments are viable or out of sheer luck. Some investors are still experiencing dramatic losses in the same industry.
Developers must present realistic crypto projects and take active roles in promoting them to find investors. For more information on crypto project marketing campaigns, visit our Services Page.