How ICO launches can fail because of badly organized marketing campaigns and how the demand for their promotion grows.

Venture Capital markets are undergoing a radical transformation. In the second quarter of 2017, ICOs collected a record-breaking $797 million while venture capital investment in the same quarter reached only $235 million. Startups all over the world are discovering that there is an easier and more profitable method of attracting investments than via venture capital.

Investors from different countries agree that the main advantages of ICOs are their ability to include a wider spectrum of people for financing, and the possibility of trading away a smaller stake in capital than is often required from VC investment.

ICOs are “very good because they democratize venture financing; not only professionals such as venture capitalists but the ordinary people can now participate and support exciting projects,” Japanese billionaire and venture capitalist Taizo Son noted in September this year.

However, developments last month proved that this instrument of attracting investment also requires startups to be well prepared with a fully articulated sales message. The Californian consulting company Architect Partners, noted that the number of ICOs that failed to meet a financing ambition of selling 75% of tokens went from only 7% in June, skyrocketing to 66% by late September.

The average volume of financing attracted with the help of the ICO is decreasing too. While in July failed ICOs attracted $4 million on average, in September the figure went down to $2 million.

The reason is the hundredfold increase in the number of projects using ICOs and, as a consequence, the greater degree of choice for investors choosing projects. Investors will seek projects that in addition to offering the most interesting product and having a team of experienced developers, have the most sophisticated plan of ICO placement. They will look to many details linked with ICO, for example, well-checked legislative aspects, a well-advised marketing campaign, and a clear and understandable conception as a blockchain solution.

The White Paper is probably the most important document for a project that looks for ICO financing. Without a detailed, clear, understandable description of the platform architecture and the legal status of the future company, a startup will likely be unable to successfully complete the ICO procedure. Some project managers try to redact the White Paper themselves, underestimating the importance of the document. Other managers, on the contrary, look for an external company to delegate the task. However, they can fall victims to another danger: the market of blockchain technologies is so young that it is quite hard to find a marketing agency capable of adequately describing the project’s concept.

The statistics of the labor market confirm the rising demand for the marketing support of ICO projects. According to Freelancer, one of the largest international platforms for freelancer jobs, in the third quarter of 2017 the number of jobs linked with cryptocurrencies increased 82% compared with the previous quarter. Matt Barrie, the CEO of Freelancer, explained that most of those who offer such jobs are looking for people capable of organizing and preparing their project for an ICO.

The most popular service on the rapidly expanding ICO market is the “ready-made ICO”. Such a service is proposed, for instance, by the Cryptonomos platform. Our service proposes a complete cycle of marketing support: it helps cryptocurrency startups pass legal audit, elaborate future accountancy, develop a sophisticated White Paper, and launch a targeted marketing campaign to attract the right, specific audience. Cryptonomos can offer consulting services for realizing a project or can place the ICO on its own proven infrastructure.

A project can utilize the Cryptonomos platform for an ICO after submitting an application and undergoing testing. The application, written in plain text, should contain the most important information that would help to evaluate the startup: what problem does its future product solve, what is the experience of its developer team, what advantages will the token holders of the platform get.

“Every project undergoes rigorous testing.” Cryptonomos CEO, Oleg Poskotin explained in a recent interview with CoinFox, “First of all, we examine the team, the idea, the product and the token functionality. The team structure has to instill confidence, to make it sure that the company would be able to carry out its plans. The team must have a balance of technical, marketing and operational experts. Besides the main team, we pay attention to advisers.”

If the project passes testing, with the beginning of the ICO it is launched out to the Cryptonomos database of potential token buyers that includes more than 32,000 active users. One of the ICOs managed by the Cryptonomos platform this year was the placement of 30 million tokens for the Giga Watt mining farm in Washington State – a crowdsale that attracted more than $22 million.

The Cryptonomos team consists of 25 people, with roughly half of them marketing professionals and lawyers.