In my opinion, IEO is not for crypto startups that are seeking funds to kick start their project but for projects that have raised capital already or have rich advisor and team to fund the project. Fund-raising through IEO can be very challenging for startups that need money to kickstart their project, because they will need large amount of money to conduct their tokensale on good exchanges, as this exchanges only list projects that meet their legal requirements and can also afford to pay their listing fees. So the best means to raise money or capital for new projects is to present their proposal to Venture capital firms or Angel investors.
Correct but there are other exchanges that accomodate IEO with a very low fees. Of course they will do small fee first since they are just beginning their IEO option unlike famous exchange that are already known for their huge name like Binance, Kucoin, Huobi, and many more. Mid ranges exchanges also now doing it like stex, bibox, p2pb2b these exchanges are now following the foot step of major exchanges. For ICOs wanting to do an IEO, its should be noted for them to ready everything like legal aspect, techincal and financial requirements.