What Brick and Mortgage Companies Must Do to Attract Investments from the Bitcoin Community
CoinPayments have just finished a crowdfunding campaign by selling out 8% of company’s shares for €252,023. It’s neither their first step in raising funds nor the last one. The company has used multiple instruments to attract investment. CoinPayments’ Chief Marketing Officer Ward Stirrat told CoinTelegraphCT r: 21 about their experience in working with different instruments for fundraising.
He told that such instruments can help build a bridge between the BitcoinCT r: 9 community and traditional sector. Traditional brick and mortgage companies just need to “learn the language” of Bitcoin community in order to attract investments from them.
CT: What are the main instruments for raising funds in crypto space? How do they work?
Ward Stirrat: If we talk about crypto space , we should mention debt offering when people are just offering the percentage of the company. But the actual share allocation is not preset so they just ask people for money with a promise to pay them back in shares later. The problem is that the price of the shares is not determined at the time of investments . Nevertheless, companies use the method quite often.
I think it’ll suite if you are a very young company with little business traction, customers and history. And in that case it’s a good strategy. We did it as well. We sold out 8% of our company’s shares via the Bank to the Future platform.
However, companies often come out to ask for money very early. They adopt selling a lot of their company in order to get money from investors where it’s very speculative. In our case we’ve chosen to prove that there really was a market demand; that company could make some money and be self-sustaining before […]
