When you’re ready to hit the red button
Note: this article should not be regarded as a legal or financial advice and is provided for informational purposes only. You may apply for our free consultation now, should you have any questions to discuss regarding your ICO. Make sure to prepare all of your questions beforehand as we won’t have much time due to the limited availability.
IR (Investor Relationships) is the process of developing the relationships with the early stage investors to either secure the pre-sale stage of the ICO or invest into a SAFT. SAFT is the standard framework we use at Crypto Lawyers Corporation to secure funding for the teams that don’t have a product for the tokens to circulate yet. During the IR process, the startup founders are pitching their products to a number of interested investors. Securing the early stage investment serves three critical purposes:
- The team is able to test the pitch materials on real investors
- The team is able to secure the initial funding to or secure the soft cap goal to have a success story for the Media. This model is popular for Kickstarter/Indiegogo campaigns.
- The team achieves the credibility boost, generating the hype before the actual ICO or during the first days of the launch.
Timeframe: The IR period is usually performed 1-2 months before the launch of the ICO. During this time it is recommended for the startup founders to participate actively in the International Blockchain conferences to network with investors and appear on the radar. This startup tour is sometimes referred to as the Road Show.
The legal homework
At Crypto Lawyers Corporation we help startups with the IR on multiple levels. First, we analyze the project and help improve its weak points, which leads us to the preparation of all of the legal documentation needed. The startup then enters our pipeline where it is able to pitch to our network of accredited investors.
It is imperative for the investors to first examine the legal opinion on the startup
Increased levels of the fraudulent ICOs along with the recent SEC reports on Munchee Inc and DAO are making the capitalists very cautious. No sain investor wishes to participate in the illegal distribution of securities or be a part of any fraudulent scheme. According to our experience, it is imperative for the investors to first examine the legal opinion on the startup, its structure and any promotional documentation (i.e white paper, technical paper, website, etc.). Thus, the legal preparation of the project is being rightfully seen as a must-have enhanced-security layer.
Schedule a free consultation today
If you’re interested in discussing your project with us. Feel free to use our free consultation today. Click the “Free consultation” button on the Main page and fill out the form so we can review your case prior to the meeting and build an effective first consultation.
About Crypto Lawyers Corporation
This blog was created in order to educate the Crypto Lawyers Corporation clients and partners about the developing world of ICO campaigns, be an introduction to the world of Blockchain, the latest industry updates and share our professional experience. However, none of the materials in this blog should be regarded as legal or investment advice.