Crowdfunding comes in all shapes and sizes, and for crypto and blockchain projects, a new and exciting area is decentralized fundraising. Within this world, Launchpads are becoming increasingly popular. Utilizing technology such as crypto tokens and staking, companies can find investors in their new projects and investors can have easy access to exciting projects to become involved in. Launchpads, like other decentralized fundraising methods, reduce the need for as many intermediaries and third parties in the fundraising process, lower costs and barriers, and provide companies with invaluable help in the process.
What is a Launchpad?
A Launchpad helps with the crowdfunding process and the launch of new blockchain and crypto projects. They are a platform that allows companies to raise capital through mechanisms such as token sales Initial Coin Offerings (ICOs) or Initial Dex Offerings (IDOs). They can also offer networking opportunities, a place for new projects to create community and provide other resources that turn fledgling ideas into fully grown, successful projects.
Here are some of the specific ways that Launchpads offer what new projects need:
Streamlined process
With Launchpads offering a built-in community, a place to market your product, and streamlined KYC processes that give investors confidence, a lot of the more time-consuming elements of receiving investment are covered. Risk management helps to mitigate issues for both the startup and investor, ensuring that many legalities are covered. Regulated Launchpads require businesses they list to meet specific criteria before being chosen - by filtering out less credible projects, investors are assured that their money will be used within guidelines. Due diligence goes a long way to building trust within the Launchpad community, and filtering projects through strong regulation reassures investors that there is an increased likelihood of success.
Broader access
Launchpads lower barriers to entry for both the startups and the investors. They give projects access to a wider audience and a diverse network of people. This audience is not just restricted to investors, but also to potential partners, industry leaders, and advisors that can be invaluable as a project gets off the ground.
Increased exposure significantly increases a startup’s progress. By using the help of experts, the feedback of the community, and access to resources offered by the Launchpads, projects have more chance of succeeding.
Promotion
Launchpads offer startups access to resources such as marketing support, potential partners, as well as customers and investors. Listing them on a Launchpad helps to give them visibility to an audience that is best suited to the project. Launchpads can also facilitate presales and early access, generating initial momentum and interest in the project to maintain through the rest of the process. Having access to these audiences significantly reduces the work and cost for startups to spend on marketing and sales.
Community
Building a community is essential for crowdfunding. It’s not just for creating the right environment to encourage people to invest, but for promoting engagement and ongoing success after launch. The more people that are invested - both socially and financially - in the business in the beginning ensures a stronger client base in the early days. Launchpads are a great place for businesses to tap into existing communities with relevant investment interests.
Launchpads and the future of decentralized fundraising
The reason that Launchpads have become so popular in the entrepreneurial ecosystem is that they lower the barriers to entry. More people can get involved in the early days of projects, and more projects can find people with their specific interests and needs. As the blockchain landscape continues to evolve, Launchpads will continue to play an important role in shaping the future of decentralized fundraising to bring new products and services onto the market. This will be particularly true of regulated Launchpads, that offer the extra layer of trust and security for funds raised. These regulations, however, will be subject to change as regions and individual countries grapple with crypto and blockchain legal frameworks. The way that Launchpads work now may not be the same as in five years time, but if the industry adapts with the changes it will continue to be able to fund exciting future projects.
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