Q: Would you pay $100,000 for an ICO investor roadshow? How about $10K for an ICO advisor to pitch you to investors?
There are 2 types of proposals that ICO advisors are floating:
1) They’ll organize an Asian roadshow for you. The premise is that you fly down and go to a bunch of conferences. They get you on stage and you talk about your product. The charge for this is around $100K.
2) The advisor will talk to investors on your behalf and you pay them $10K-$25K for their efforts, plus a success fee of 3%
But do these roadshows translate to success in raising funds?
The short answer is an emphatic NO!!!
First lets talk numbers. Your advisor is paying the conference a discounted rate of $1000-$5000 per stage appearance(in some cases it’s free). If he’s promising 8 stage appearances, his expense is no more than $15K-$30K. The rest is going in his pocket.
Now lets talk fund raising- You might get lucky and bump into an investor that is really interested in your vision and wants to invest. But the likelihood of this happening is low, especially in this market where many have been burnt with the dropping prices of cryptos.
Now for the second type of offering:
If anyone tells you that they’ll pitch an investor for you, RUN as fast as you can. Listen, no one can raise funds for you. You are the founder, it’s your vision, it’s your job to sell. I am willing to bet that most of these guys wont even pitch you. They’ll just take the $25K and do nothing.
So, what do you do?
- Make an MVP or better yet, make a real product
- Get the community involved
- Get customers
- Generate revenue