The purpose of a conventional ICO is to raise the bulk of the capital that will be needed to build and launch the product: Typically, a start-up raising funds through an ICO will be a little beyond the concept stage, but not much.
In contrast, ‘Reverse ICOs’ are token sales held by companies that already have a successful product and business that want to raise additional capital for expansion. Reverse ICOs are conceptually closer to traditional IPOs, allowing investors to purchase equity in a company with a proven track record, and giving companies a foothold in the new cryptocurrency and blockchain economy.
Through a combination of technical and strategic expertise, IBC can help established companies raise funds while decentralizing existing infrastructure through the reverse ICO process.
Holding a reverse ICO is not suitable for every business, but can be an extremely effective technique in the right use cases. IBC provides a comprehensive operational analysis package in which we assess the suitability of your product, technology and business model for a reverse ICO, delivering a final report on whether you stand to gain from the procedure and an estimate of these gains.
For many companies, decentralization is a new way to think about business. IBC will help your company understand the various approached to decentralization along with the pros and cons, and provide consultancy services to help shift your business practices towards a new paradigm.
We will ensure your Reverse ICO is conducted within the appropriate legal framework from the outset, in full compliance with relevant regulations. Our legal team can advise your company on best practices to ensure that your token offering is both profitable and compliant.
Advice for Existing Investors
As an investor, you should understand how reverse ICOs can provide an appealing exit strategy for companies in your portfolio. As a CEO, you need to consider how you will keep existing equity holders informed and protected as you raise additional capital through a token sale. With the right guidance, Reverse ICOs can provide a strong valuation for mid-size firms while distributing equity in a liquid, transparent and technologically sophisticated method. We ensure the process is seamless and clear for your company as well as your existing investors.