How ICO’s raise money

We read about ICO’s raising huge amount of money and wonder where the money comes from.

Lets have a look at some of the prominent big ICO raises:

Money Raised Number of Token Holders Average Investment
FILECOIN $257,000,000 2100 $122,381
EOS $185,000,000 89,306 $2,072
BANCOR $153,000,000 12,832 $11,923
STATUS $90,000,000 41,264 $2,181
TENX $80,000,000 36,242 $2,207

The Filecoin ICO seems like a bit of an anomaly with the average investment being much higher than other ICO’s. Much of this was due to the fact that it had backing from large venture capital investors like, Sequoia Capital, Union Square, Andreessen Horowitz and Winklevoss Capital.

However most ICO’s don’t get support from traditional venture capital and therefore rely on smaller buyers for their funding.

Even though this could lead us to believe that ICO’s could be funded by small buyers, the reality is that ICO’s need to build momentum in their ETH wallets when they open their ICO sales. This is why Pre-ICO sales are so important as a way to build momentum for the  token sales.

The next thing to look at is what an average buyer would actually purchase. In our experience the average buyer is around $200 therefore the $2000 average is really pulled up by “whales” (large buyers) that buy much larger amounts of tokens.

So if you wish to do a successful ICO you need to not overlook Pre-ICO sales and make sure you build momentum going into the public sale.

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