Blockchain based ICOs have become the new buzzword, as this technology is transforming businesses with its transparent and decentralized architecture.
According to ICO Data, there has been a significant rise in the amount of money generated using ICOs; from 871 in 2017, with the total worth of USD 6.1 Billions to 867 in the first half of 2018, with the total value of USD 5.5 Billions. The reason for the meteoric rise in ICOs is apparent, as traditional ways of generating capital such as loans or shares are not practical to companies anymore.
The white paper forms the cornerstone of any ICO as it represents the complete process for the development of any blockchain project. In spite of its pivotal role, many writers are still unsure about the format and purpose of a white paper. A white paper is a document that describes difficulties in the marketplace and elaborates the process by which the company would solve that problem. But, understanding the format and purpose may not be enough for writing a winning white paper.
So, here are five invaluable tips to ensure your ICO whitepaper catches your investors’ eye in the first few seconds.
1. Understand The Mindset of Investor
To catch your investors attention, understand what makes them tick. In many cases, it might not be feasible, so make sure that your whitepaper appeals to a large range of investors, irrespective of their mindset. Keep in mind, where you see the opportunity, the investor only sees the risk. Therefore, it’s your responsibility to write a white paper that lowers the investor’s perception of risk, and builds confidence in their mind about the success of your venture.
Here are a few ways to do so:
- Build a team with the knowledge of the relevant technology and business skills necessary for executing the plan. Make sure to highlight your prior track record in successfully commercializing similar ventures.
- Accentuate all those areas where your solution possesses a significant advantage over the competition.
- Since your project would be based on cryptocurrencies and blockchain, convince the investors what makes them the best choices for your venture.
2. Do Your Research
The success of your ICO whitepaper is dependant on the level of your research. Before getting started with your whitepaper, research the market thoroughly and determine the feasible business models that can can address the pain points of your customers. Get into the shoes of your investor, ask tough questions that they may pose, and figure out the answers. It’s imperative to be 100% sure that your ICO whitepaper has a compelling value proposition and adds to the bottom line of your investors.
3. Prepare The Pitch
The insights you generated doing your research would play a key role in this step. Before jumping to the white paper, it’s important to analyze the information. If you don’t understand the market, you can never explain it to the investors. Prepare the answers to questions like
what you’re doing?,
why is your project better than the current one?, and
why is your team the right one to accomplish it?.
While describing your pitch deck, convey the answers to such questions clearly, coherently and confidently.
4. Highlight The Key Players
Ensure to provide an overview of the team working on the project. Mention their skills and achievements, and give a link to their LinkedIn profile. A strong profile of your team will instill confidence in the investors that the best industry experts are working on their project. Involve technology specialists and business leaders in your team to give an edge to your project.
5. Talk About ICO Numbers
Last, but not the least, mention clearly how your tokens would be distributed and allocated after meeting the soft cap. Everything from pre-sales ICO bonuses to any incentives given during the ICO itself like referral rewards should be addressed in depth. Discuss every little detail of your operation regarding token usage, so as to avoid any blank spots in your information. ICO investors will verify your information, therefore make sure that every word comes from a reliable and authentic source.
Since ICO whitepapers play such a crucial role in attracting investors, it’s always advisable to get it written by experienced white paper writing services to make it stand out. Firstly, with their experience, you can identify and avoid the subtle mistakes. Since, white paper writing is a consultative process, experience and knowledge of the third party is always of great value. Secondly, if a reputed third party writes the white paper, it adds credibility to your venture and offers you a competitive advantage.