How to make the offering favorable for you and attractive for your potential investors?
📜 It is generally clear that the product and the team are the most critical factors investors should consider before starting any cooperation. Even though these are essential determinants, it’s still possible to lose funding if the offering is structured badly, i.e. if investors’ rights aren’t safeguarded or if the return on investment is low, difficult to obtain, or delayed in time.
🧐 Giving your investors an unfair advantage by offering excessively advantageous conditions, on the other hand, is not a winning approach. Still, a situation like this doesn’t necessarily put you between a rock and a hard place.
�� In our recent article, “The token economy: nuances, returns, equity finance”, read about the economics of debt and equity financing, problems of equity financing for new projects, and the importance of liquidity.