Iconiq Lab Disrupting Venture Capital Ecosystem
Venture capitalists privately fund start-ups usually in exchange for some control over company operations. Venture capitalists are not mere financial supporters; they also contribute in networking contacts, business management and so on. However, it is not easy for the start-ups to attract the attention of Venture Capital system and have to wait for months to be recognized by the investors. Sometimes, they also have to give up some control of the start-up to these investors in order to raise capital. To eradicate these problems faced by a start-up many people have been looking for an alternative. Lately, the popularity of ICOs or Initial Coin Offerings have increased due to rise in the number of people taking interest in blockchain technology and it providing feasible solutions to many issues.
The ICOs Ecosystem
The funding mechanism of ICOs surely provides some feasible solutions but they also have their own challenges. The main issue is that it becomes difficult to identify which start-up has great potentials and distinguishing them from possible scams. The startups need to find investors for their projects such that they can grow steadily and rapidly. According to the white paper of Iconiq Lab, the quality of the token instrument, transparency and timely performance matters a lot for start-ups that raise capital through their own ICOs. The significance of Iconiq Lab can be best observed here. As the white paper claims, it is, in fact, “the world’s first batch-driven global accelerator program for startups issuing an ICO.”
Introducing Iconiq Lab
The objective of Iconiq Lab is to utilize their experience in the venture capital ecosystem to create a democrat model of ICOs for both start-ups and token buyers where knowledge and creativity are prioritized. Iconiq Lab is completely supported by the token based acceleration program that removes the gap between the promising start-ups and the top blockchain, cryptocurrency experts and also investors. The need for creating Iconiq Lab can be understood from their operations. The thoughts which introduced the ICOs were transparency, impartial judgement and a democratic environment. Another thing is that not every trader or investor other than the whales can participate in the early stage of the ICOs. It has also been seen that the early investors of the start-up get lucrative discounts and has even some credentials to manipulate the token sell token sell gap.
Why Startups Require Iconiq Lab?
Iconiq Lab addresses the problems currently faced by start-ups like VREO, Wunder, Based Global, Braincities, and Topl. To run ICOs even, a start-up requires substantial capital and an extensive network. The success of an ICO no longer depends so much on the ideas and teams of the start-ups as it does not initial funds and connections. In short, the system is no longer democracy centric. Iconiq Lab helps out the start-ups as well as the investors by providing financial, network and knowledge support for the promising teams that have sound token ideas to start their ICOs. The tokens should be able to benefit buyers of all sizes and they should also have the opportunity to take part in the pre-sales.
By helping out the start-ups by providing means to round up capital and network facilities, Iconiq Lab aims to create the most qualitative and useful token acceleration program. The start-ups need Iconiq Lab to progress, so does Iconiq Lab require start-ups having good ideas to succeed. The selection process of the start-ups is thus quite strict and only those who have something good to offer to the world get selected. In fact, the team of Iconiq Lab say that only 3% of applicants get selected to be benefited from the ‘best’ mentor network. Currently, cofound.it is one major competitor of Iconiq Lab but their approach is from the accelerator model towards an ICO platform. Iconiq Lab, on the other hand, takes the approach of the Y Combinator model for the token projects have great potentials.
Iconiq Lab Eliminating Venture Capital and Addressing Challenges of the ICOs
- Assuring the quality of the start-up: Even though many start-ups now raise substantial funds through the ICO ecosystem, the investors do not have any way of understanding whether the start-up they are investing in is a fraud or scam. It can be confidently said that ICOs are basically operating on speculations where it is easy enough to lose money. The Venture Capitalists plays an important role in identifying the developing value drivers. Iconiq Lab takes over the job by providing knowledge, financial and network support.
- Providing capital and funds prior to ICO formation: The popularity of ICOs and token system have already surpassed the popularity of Venture Capitalists. However, forming an ICO also requires capital. Some of the start-ups may have great ideas but lack the competencies and funding to start their own ICO. The start-ups selected for the accelerator program will receive €25,000 worth of ETH for initiating its own ICO. Iconiq Lab does not stop here but also provides mentorship and support programs such that they will attract larger investments.
- ICNQ Club Members facilities: Those who have the token of Iconiq Lab – ICNQ, they are offered many facilities in the ICO ecosystem. The ICNQ Club Member will be able to take part in the token pre-sales of the selected start-ups. Meanwhile, Iconiq Lab continues to help the participants to collect seed fund and performs due diligence.
- Regulations and transparency:Iconiq Lab is focused on creating a clear set of rules and regulations by collaborating with its own community, regulators, strategic partners, technologists and other relevant personnel. This will ensure a fair game for the start-ups and the system becomes more transparent.
The ICNQ Token
As said before, the ICNQ tokens will allow an investor to take part in the pre-sale of the tokens of highly qualified start-ups. The investors need not worry about their investment being misused as the Iconiq Lab tokenization program is led by top cryptocurrency and blockchain experts. The token acceleration program will also start in New York, Frankfurt, and Singapore by the end of 2018 and within 5 years, they aim to incorporate 300 exclusive pre-sale opportunities for the ICNQ token holders. They will also get massive discounts on pro-rata base and will also give their opinion regarding the applicants in the selection process.
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