Project founders have extensive knowledge and experience in fundraising such facilities and are fully conversant with the practical procedures.
ICO is a new way to attract financial investments and provide many benefits:
- ICO makes way to raise funds much faster, compared to searching for and negotiating with possible strategic investors
- ICO provides the ability to split obligations among investors
- The project provides key benefits at the ICO exchange as it is secured with real, tangible assets.
Please see below for a more detailed explanation as to why classic fundraising methods have been rejected:
Currently the facility has two key assets for the project’s success: a production base with proven existing raw material deposits and a highly accomplished team operating within the industry for over a decade.
However, these owned raw material deposits have a much higher value when comparing them to a required collateral, banks or classic investors cannot take any part of it as a guarantee according to the legal system. It can only be accepted in its entirety and that doesn’t really seem to be a win-win deal.
Therefore, a bank loan or a classic investor is not an option for the project at this stage, which is exactly why the ICO was initiated.