Post
Topic
Board Altcoin Discussion
Re: I need a reality check, is an ICO right for me to fund a business?
by
proparty
on 12/06/2020, 16:29:40 UTC
You didn't mention how you're going to do business with your startup. It looks not even a business at all if you're feeding people one meal a day, this looks more of a charity and investors that will put money into your startup will get ownership and how they'll make money from that? there's no clear business model that you're actually doing including the marketing and hiring of employees. Most of things that you have mentioned were all cash-out flow and the only cash in flow is the investors money.
I suppose I'm relying on good faith of the investors to continue to contribute money into a business that feeds people for free, the more investors that are attracted to the idea the larger the market cap grows thus improving their ROI long term. Which is different then giving it away to a charity and never seeing a return at all. It is all cash out, the only cash in is the investors contributions and donations here and there. It'd be set up like a non-profit, but as soon as the money stops flowing, the business is done. 
It's not a business if it's non-profit. And you shouldn't call people that contributes money as investors, they should be donators. Because both words have a different meaning and being called as an investor, there's an expectation of a return of something from what they've invested in.
No investor will invest when the distribution of free meals to people once done, it's already done. I think that you have to clarify that to your donators instead of calling them investors.

The return they get will be in half of their total investment, or the value of the company, maybe a coin isn't it but I think block chain can work somehow. I guess I have to do the math before I raise any funds obviously, but I'm just trying to imagine a community program funded by the people that have partial ownership in that company. If it takes 100,000 people to raise a $1m, and it takes $500,000 to hire employees and run the company say, the other half of the valuation of company belongs to the 'donaters' the reasons I'm calling them investors is because there is a possibility of a return even it's not the most lucrative investment. But if 200,000 people contributing monthly are now valuing the company at $2m then the early adopters have made their initial investment back, and as more people subscribe the more the company can thrive in communities and the more wealth early adopters can accumulate. I guess I have to find out what other incentives the 'donator' gets other then a peace of mind of feeding the hungry and shares in the company, I'm thinking of some type of product mailed to them could be more of an incentive. I guess I'm imagining it like a program you opt into as if it were some type of tax, and at the end of each year you can get some type of 'tax return' even if its not your total investment. I feel like there's something here, I just have to work out the economics of it,  because if it is a non-profit the $10 a month subscription (or any donation) would be a write off to the contributor.