When ICO’s first came to the market they were very technical and basically specifications for building a product that would use blockchain as their core. Many of these projects were very successful in raising money through ICO’s.
While these kinds of projects can be some of the most high returning they can also be some of the most speculative since they products are not built and generally don’t have any underlying business traction.
At Blocks Ventures we believe that blockchain will revolutionise the world as we know it effecting businesses across the world.
With this in mind we would like to help tech businesses that have real technology, user traction and could potentially move their businesses to the blockchain.
Existing businesses can do a white paper that are more like business plans and while this may not elicit huge funding rounds, we believe that these businesses will be more sustainable in the future and more consistent for investors over the long run than very speculative ICO’s that are only based on building future technology.
Traditionally white papers have a lot of legal disclaimers and basically are designed to not protect the issuer from legal problems that could arise in the event that buyers question the selling the tokens or what happens with the proceeds of the token sale.
White papers that are technical traditionally look more like product specifications and generally go into technical theory around what they intend to develop. They spend a lot of time defining the problem and most of the successful ICO’s in this space work on technical problems that deal with blockchain related problems. These issues are understood by the community and therefore supported and have the ability to raise a lot of money due to this.
The traditional businesses don’t usually find as many investors as the community around this is not as large yet, however tokens have a huge advantage over traditional equity as they are able to be traded a lot easier and this seems to the be the future in venture investing.