ICO vs. IPO
Two similar concepts, which could not be more different
ICO (Initial Coin Offering) is a young innovative way to raise capital which is increasingly becoming attractive for aspiring companies. In most cases, in the beginning of a company there was a vision or innovative idea. Capital procurement in such an early stage proves itself to be difficult since reliable company results cannot be provided to potential investors. Against this background, ICOs can be considered as an investment in a vision or an innovative idea. Initiators are given the opportunity to raise funds in an early stage of their project. Investors on the other hand have the opportunity to position themselves on the market at a very early stage at a relatively low price level. The ICO market is open for any company regardless of its legal form and meanwhile capable to satisfy larger funding requirements. The advantage of an ICO is a straightforward implementation process that is time-saving and cost-efficient. […]
Through an IPO companies are raising equity capital by offering shares to investors. A distinction can be made here between the processes of traditional IPOs and so called alternative IPOs (Instant IPOs). Mostly, traditional IPOs are time-consuming and cost-intensive. Moreover, the company offering its shares (issuer) is dominated by external influencing factors, such as lawyers, authorities, banks, underwriting groups etc..
In comparison to a classical IPO our Instant IPO process is considerably less cost-intensive and time consuming and can be conducted independently. Therefore it is particularly interesting for young, aspiring companies that lack a long history of market performance. Eventually, the Instant IPO process leads to the same goal as the classical IPO: a direct access to capital markets. More than 20 years ago the team of Instant ICO/IPO has created this alternative way of capital procurement and improved it ever since. […]