and the value of Seed Coin Offerings
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When companies ICO, most try to raise as much money as possible. If investors are willing to contribute millions or even tens of millions, companies usually take it, no questions asked.
In some rare cases, raising this amount of money may be warranted. But, for the most part, the only reason companies do this is because they can -- not because the business needs this type of investment or can even rationally support it.
In the startup world, there are two financial sins.
1) having no money
2) having too much money
The first one is obviously a problem. You either have no money to start the business or you run out of money and the business dies.
However, the second one is a bit trickier.
When a company receives investment capital, there is an implied obligation to spend it. However, when a company is new, it's extremely hard to know what to spend it on.
Often times, companies hire the wrong employees (because they're obligated to hire a large team, quickly) and do the wrong things (because they're working on something unproven in the marketplace).
The end result is a new company that looks the part. They have a large team, a nice office, and great marketing. But, underneath it all, they're hemorrhaging money, spending it all on the wrong things.
Ultimately, the money runs out and the company dies. It takes a while. And there were glimpses of good along the way. But, it's ultimately a long road to nowhere -- all because they had too much money to begin with.
We don't want to do that.
That's why instead of having an ICO, we're having an SCO (seed coin offering).
1) We're not going to raise an exorbitant amount of money. Instead, we're going to accept as few financial contributions as possible.
2) We're going to keep a small and lean team. We don't have 20 faces on our web page, and we're not going to apologize for that.
3) We want to spend the money we make, not the money that we're given. We're focused on near-term profitability and hope to achieve it as soon as possible.
4) We're attacking a pragmatic business opportunity that should support a small company today and, as the market grows, can potentially support a much larger company in the future.
5) We're not putting a billion dollar valuation on our backs. Conventional ICO investment has largely been targeted at the largest, most popular opportunities. The problem is a company that receives $20 million then has to build a $100 million dollar business from nothing in order to meet expectations. That's impossibly hard. However, a company that receives $100,000 has a much lower bar to reach. We can't say which is more achievable with absolute certainty, but you probably know our opinion.
So, we're going to SCO.
We'd like to achieve between $150,000 and $250,000 of contributions. We know what to do if the number is slightly higher, and we know what to do if it's slightly lower. But we're going to keep it small and work to build a real, self-sustaining business that grows over time and is a rewarding experience for everyone involved.
That's the model we like and we hope you like it too.
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For more information about Innercore, please visit our website, our token sale page, or chat with us on Telegram.