Episode 169-How to gather funding required to laun

Welcome to the end-to-end ICO series where you learn how to launch your own ICO straight from the experts. Alright you have decided you're going to do an ICO or an STO if you're in the US. Remember 2017 was a bull market. 2018 is a bear market. So if you spend 100 or 200 thousand dollars in 2017 and raised 20 million dollars for your ICO, you might

have to spend 10 times more money this year in 2018. So you might have to spend approximately one to two million dollars right. So bear that in mind and now let's deconstruct that. Let's say you are in Singapore or you want to do your ICO in Gibraltar or Malta, Restonia or Singapore. One of those places where you can still do an ICO initial coin offering, you

will estimate how much is your heart cap. That's it. 20 million dollars. Then you'll say in order to raise that about what do I need. Let's say you've estimated to be two million dollars of marketing and other expenses. Now you say how the heck do I get to two million. I need to do a private sale or a pre-token sale. Okay. In order to do that

how much do I need? 200 thousand dollars to get from zero to two million. How do I get 200 thousand dollars. And you're going to break that down and say I'm going to call every friend, every family member, knock every door I can. So you're literally if a telephone pole is standing still long enough, you're going to sit down and pitch your business plan to the

telephone pole. So you're going to be incredibly dogmatic, incredibly focused, incredibly dogmatic, not dogmatic in getting after your goal. So that's really what you're going to do. You're going to knock every door, turn every stone and you're going to raise you 200 thousand dollars. No different than what you would have done. If you were to start up 10 years ago, five years ago in the Silicon

Valley, and you're trying to raise money, you'd go around and get your first round of engine investment, $100, $200,000, build up something like a prototype, get your two million next and then build up your product, get 20 million next and so on, so forth. So that would have been an angel round or a friend's and family round and angel round and a VC round, something like

that. So things are very similar to that, even in the ICU world, except the time, time frames, timelines are extremely compressed. That means what would take you probably a couple of years before you're trying to do that in three to six months to get to the end of your fundraising of $20 million. What if you're in US in US, SEC pretty much came back and said,

what the heck? We've been having these regulations, they're working fine, created multiple billions of dollars, maybe trillion, so dollars of markets. We don't see any reason to change that. You can call them a utility coin if you want. But for us, practically all your utility coins are security tokens. Okay. So that was more or less a statement that SEC came back with, which basically means if

you are in the US and you want to launch your ICU, you're going to do an STO security token offering and you're going to use a regular G or a G plus or a G or a G S or one of these or some combination thereof to raise your money. But it doesn't change the, I just add the additional legal costs of a couple of hundred

thousand dollars presumably, but it doesn't change the sequence much. You still want to raise $20 million to an STO. You still need to build up maybe some prototype, some product, some proof of concept. You need to know doors, go to conferences, meet the high net worth individuals and funds and so on and so forth, private equity teams and raise money from them. Right. So it still

is the same. You're going to take the 20 million, break it down to 2 million, break it down to 200,000. And you have to have a dog and pony show to raise the first 2 million. They're going to invest that back today's the next 20 million and so on. So it's a gradual step by step way of raising money. And obviously fund raising is a complex.

Process I cannot cover all the necessary stuff in whatever, four, five minutes that I'm taking here. But my goal is to get you to understand at a high level enough that you'll start digging deeper to find out the best way. If I were to do an ICU or an STO, I will go find somebody else could you deny CO or an STO right and find the

founder CEO and request them for time. And I would interview them get all their lessons learned and follow that 20. Okay. I call that hacking the bright spots. If you want to raise money, your bright spot is somebody who was already raised money and instead of reinventing the wheel, just go to them and hack their bright spot and get the form of the applied to yourself.

Okay. Hope that helps. KNIGHTS.IO.