To get new startup ideas off the ground, aspiring business owners are faced with many options for funding, including bootstrapping (self-financing) their venture, taking out a short term business loan, or tapping into the boom of cryptocurrency by launching an ICO to raise capital.
An ICO gives companies the funds they need to operate by selling underlying crypto tokens in exchange for another form of cryptocurrency. Short for Initial Coin Offering, this method of raising business capital is allows startups to retain control of their companies and has little regulation, allowing entrepreneurs to see a significant ROI without facing red tape or restrictions.
Still, entrepreneurs should bear in mind potential disadvantages that come with ICOs, specifically that they bear significant risk of failure and can be expensive to launch. Small business owners should carefully consider the advantages and disadvantages that come with using an ICO to raise business capital.