How to Get Early Access to Profitable IDOs Through VC Firms
With thousands of viable blockchain and crypto-based startups vying for investments and big VC players seeking to monopolize the blockchain space, it can get difficult to emerge in such a market space if you are a retail investor.
VCs are accredited investor groups or individuals that fund a company in exchange for equity (% of tokens in the case of crypto projects) and earn positive returns on their investments. The main sources of VC funds are private and institutional investors. These venture capitalist firms usually get access to a project via private sales conducted early on before the IDO is opened for retail investors. The VCs also get to have the tokens at a much lower cost than general investors.
Contrary to popular belief, these VCs cash in the success of projects that are at a stage of commercializing their idea. Most of the projects have been already working on their project for a year or so before launching their project via an IDO. Such projects have probably already been funded by a VC. VCs help these projects with strategic planning, accounting, recruitment, finance, legal requirements, etc. The VCs offer a lot more than just capital funding and invest in the project at a riskier stage, hence the preferential treatment and better rates cum returns.
For retail investors, the entry stage is either via ICOs or IDOs. IDOs have proved to be a much fairer and more transparent alternative to the ICOs of 2014–2016, which were notorious for issues such as the possibility of scams, insufficient product development, lack of traction, subsequent execution, etc. A report suggests that 50% of the ICOs have failed to raise funds since 2017.
Currently, IDOs are the go-to option for crypto projects to raise resources for meeting their goals. IDOs, being decentralized capital raising initiatives, depend largely on knowledgeable community members to vet the offerings. The IDO tokens are immediately listed on the DEX and become tradable.
IDOs provide a level playing field for retail investors to pool their resources and together fund a crypto project in the hope of earning good returns. While IDOs are a great decentralized alternative to capital raising, they suffer from several roadblocks for retail investors:
- IDO launchpads often fail to research the authenticity of a particular crypto project, making retail investors vulnerable to scams.
- There is no equal distribution of tokens between seed, private, and public investors. Most of the tokens are usually kept for the private investors or VCs and the team. Consequently, while the VCs may be earning huge profits, there is little gain for the retail investors.
- Often these projects are dumped midway, or the founding team cannot move their idea ahead to the implementation stage due to a small network, lack of guidance, minimal reach, and lack of enough capital.
- A common problem the investors face before they can invest in any cryptocurrency project is the need to get whitelisted. The retail investors often get the last bits of investment, and the process is far from equal and fair.
- Since different projects are built on different blockchains, there’s no one point of access for a diversified portfolio. An investor will have to scout for the right projects on different blockchains and do multiple sign-ups on various launchpads and platforms.
- The level of research required to build a robust portfolio consisting of a wide spectrum of projects is often beyond the individual capacity of an investor, and they might end up losing good investment opportunities before they can find out or analyze their potential.
Globally, millions of people remain unbanked. The restrictions imposed by traditional finance and crypto exchanges further disallow people to seek financial opportunities via investments in viable crypto projects. Retail investors have no access to most crypto projects’ private token sales for want of info or entry barriers.
But what if we tell you there’s a way out?
What if we tell you that Sheesha Finance has found the perfect middle path to override the above-mentioned pain points for VCs and retail investors to partake in the growth and success of the crypto projects they fund together. Let’s find out how.
Sheesha Finance: Your Gateway to Profitable Investments
Sheesha Finance is essentially a ‘ VC firm for the masses’: Sheesha’s seamless and multichain community-centric platform provides equal opportunities to retail investors to partake in the growth and development of a project via staking opportunities. It helps the project’s pre and post-IDO while also helping them to find the right platforms for their IDOs.
While the platform helps blockchain startups navigate the hurdles in blockchain financing, it also provides investors with early access to profitable crypto projects. In a nutshell, Sheesha strives to turn retail investors into successful venture capitalists with its dynamic strategic approach. Investors get exposure to a wide range of early-stage projects on several blockchains, including Ethereum, BNB Chain, and Polygon. Sheesha will soon be extending its multichain opportunities to include projects on the Algorand blockchain, too.
The projects cover a portfolio of diverse themes ranging from GameFi, Metaverse, and NFT to other DeFi sectors.
For the users, Sheesha offers the following perks:
- No requirements for identity verification
- No minimum deposits required
- No extensive performance charges or management fees
Sheesha Finance also leverages its extensive network of VC partnerships to fund the projects, further ensuring returns to the investors who invested in these projects early on. Besides the VC funding, Sheesha also provides access to marketing agencies, influencers, and public relations while helping them increase their community and social media market reach.
To ensure the projects achieve the right acceleration during their early stages, Sheesha works hand-in-hand with the projects across the whole ecosystem. Being the incubator ecosystem that Sheesha is, it makes sure that the value for each project is maximized, and investors get to invest in profitable projects.
Besides these in-house capabilities, Sheesha guides and mentors projects to save them from the common pitfalls projects may face without the right support. It ensures an ecosystem of opportunities for investors, projects, VCs, and other stakeholders by diminishing these entry barriers. It has an extensive reach and works with multiple strategic partners, including marketing agencies, launchpads, exchanges, KOLs, techcelerator, etc.
In addition to the added value Sheesha offers to its investors and projects, it checks the validity of different projects and the vetting processes to protect users from malicious actors and scams, ultimately leading to a positive growth trajectory benefitting the investors and other partners. It does so by delving, even before the onboarding process, into the nature of prospective projects — their USPs, product-market fit, credibility, team potential, and the scope for commercial success. Sheesha’s internal investment team unanimously approves a project before its IDO finally goes on floors. The team does all the hard work and due diligence to ensure all projects are genuine and of high quality while allowing investors to spend less time searching for projects. This is how investors get greater chances of returns via prudent investments at the right opportunity.
