Led 29

Different Ways to Raise Funding For A Bitcoin Startup

Source: bitcoin


Starting a company in the Bitcoin world is not that hard these days. All one needs is a good idea, and a proof-of-concept to show this idea is valuable to begin with. But the biggest challenge for most startups is to raise enough funding, as day-to-day operations can be quite costly. Rather than looking for VC funding, there are other alternatives well worth exploring by Bitcoin entrepreneurs.

Also read: OpenBazaar in Depth: Interview with COO Sam Patterson

Raising The Funding For Your Bitcoin Company

When it comes to securing funding for a Bitcoin startup, venture capitalists are the preferred target. Presenting one’s case at any of the Bitcoin conferences around the world is a great way to reach an audience of potential investors, although the end results may vary slightly. Not every concept needs VC backing, though, as there are plenty of other ways to raise funds.

Crowdfunding campaigns in the Bitcoin ecosystem are not all that common just yet, although things are changing. Equity crowdfunding is a particularly interesting trend in the digital currency space these days, where companies will offer a small share of their company in exchange for funding. What makes these campaigns so interesting is how they will get a company lots of press exposure, and there is no need to hunt down individual investors.

Even though most countries around the world are still debating on whether or not they should create a regulatory framework for Bitcoin, there could be a bright future ahead. Bitcoin offers innovation, and any form of innovation should be stimulated through startup grants. It remains to be seen whether or not these perks will ever translate to Bitcoin startups, but it is an alternative form of funding to keep in mind for the future.

Angel investors are quite popular among Bitcoin entrepreneurs these days, as they offer flexible business agreements and bring a strong network of partners to the table. But at the same time, it is difficult to obtain follow-up investments from angel investors. Startup unicorns might be an exception to this rule although they are very uncommon these days.

Last but not least, there is the option of receiving a peer-to–peer loan. Keeping in mind how Bitcoin is all about the peer-to-peer transaction, this type of funding seems to be perfect for digital currency startups and entrepreneurs. These loans provide a fast way to raise capital without sacrificing equity, but they do require some form of collateral in most cases.

There Is No Wrong Approach To Secure Funding

With so many different options at the disposal of startups and entrepreneurs in the Bitcoin industry, there is no wrong way to raise funding. Every individual method has their pro’s and con’s, and cookie-cutter solutions simply do not exist. Different types of businesses will benefit from different approaches.

Raising the necessary funding to get one’s project off the ground is an important aspect of the Bitcoin business world. Just having a bright idea is not enough, as, without money, there is not much progress to be made. That being said, combining several of the options as mentioned above might yield the best results.

How would you go about raising the necessary funding for a bitcoin funding? Are the other ways that are viable as well? Let us know in the comments below!

Source: Tech In Asia

Images courtesy of Shutterstock, Catalyst Resources

The post Different Ways to Raise Funding For A Bitcoin Startup appeared first on Bitcoinist.net.

Different Ways to Raise Funding For A Bitcoin Startup

Led 06

D10e Hosts Blockchain Startup Competition in Amsterdam

Source: bitcoin

D10e Hosts Blockchain Startup Competition in Amsterdam

Blockchain startup competitions are an integral part of the Bitcoin ecosystem, as these types of events will drive future technological innovation in this industry. Coming up with new and creative use cases for blockchain technology is a difficult task, but when groups of developers are put together to share their ideas, interesting concepts can become a reality. A new blockchain startup competition has been announced by d10e, taking place in Amsterdam on February 18, 2016.

Also read: More Signs of Trouble in Asia: Barclays to Cut Investment Banking Jobs

The Value of Blockchain Startup Competitions

Unlike blockchain hackathons, where developers have to put together a project within a certain time limit, startup competitions are focusing on something else entirely. To participate in such an event, the startup must have been founded already, and be less than two years old. Any blockchain company that is in the pre-seed or seed stage is eligible for this competition.

What makes events like these so valuable to the Bitcoin community is how different people come up with creative ideas no one else has thought of. Innovation in the world of blockchain technology is accelerated at a rapid pace, as developers start to think outside of the realm of “normal” possibilities.

Some of these solutions might seem a bit far fetched at the time of a blockchain startup competition, but that doesn’t mean they can’t become successful. Most people still see the blockchain as something that can only be used to power payment networks, even though its scope of capabilities extends much further.

Sometimes, the concepts themselves are amazing, but hearing the story of how developers came to creating that very project are what makes these startup competitions thrive. A lot of the projects are built out of frustration with something that happened in the real life of any of the creators, and as they thought about how it could be changed, the blockchain proved to be a powerful ally.

One thing that is hampering Bitcoin and blockchain adoption right now is the limited number of real-life use cases. Startup competitions like the one organized by d10e will bring this technology to consumers all over the world as they can relate to these new projects and ideas. Finding the killer app to put this technology on the map will be the key to success for both the blockchain, as well as Bitcoin.

The d10e Competition In Amsterdam

For those blockchain startups looking to enter the d10e competition in Amsterdam, the application deadline expires on January 15th. Along with the application, entrants must submit a two-minute video of a working product. Once a startup is selected, they can then pitch their idea on February 18, 2016, to a panel of VC’s, angel investors, and a live audience at Beurs van Berlage in Amsterdam.

As one would come to expect from any startup competition, the grand prize is prestige for their product. On top of that, a lot of attendees will be looking for network opportunities with the winners, and press coverage will follow shortly after. Last but not last, the blockchain startup competition winners will be invited to pitch their project at d10e San Francisco 2016.

What are your thought son this blockchain startup competition? Are there projects you are looking forward to? Let us know in the comments below!

Source: d10e

Images courtesy of Shutterstock, d10e

The post D10e Hosts Blockchain Startup Competition in Amsterdam appeared first on Bitcoinist.net.

D10e Hosts Blockchain Startup Competition in Amsterdam