Investing in a crowdfunding project brings a world of excitement and opportunity, but, unfortunately not every project delivers on its promises. If you do your research before taking the leap and investing, you are much more likely to get the most out of your buck. We at InoCoin advise all investors to do proper methodical research before investing in any of the projects listed on our platform.
Ability to invest in long term projects
The research process always starts with you. Each and every project requires you to make your investment months ahead of you get anything in return. Are you willing to hold off your money for that long? Also, always make sure to invest only money you can afford to lose, just like with any investment.
Does the project page (or website) answer every question that pops up in your head?
The project page on our InoCoin platform should contain answers to most, if not all, of your questions. Also, make sure to look at the project’s website if attached to the page on our platform. If not, try to see if some other contact info is attached to the page and contact the founder there.
Is the company/startup behind the project trustworthy?
Like an investigative journalist, you want to know the who, what, how and when of the opportunity before giving over your hard-earned money. Look up their project on the internet, various forums, social media, etc. Who are the people seeking funds and what can the web tell you about them?
You are looking for possible past successes or failures in crowdfunding campaigns. Did they receive the funds they were looking for? Did they distribute products/rewards in a timely manner? Is the project still successful? What kind of customer feedback did they receive for their previous projects? Reddit, internet forums, review websites are your friend, be sure to do diligent research.
Check out the key players behind the project, too. Have these people been successful in other parts of their jobs or careers? Established business people, with success in their niche, and with a proven track record are a great signal, which is not to say that new startup founders are to be dismissed.
Another crucial thing you should look out for is how the company responds to their investors. Do they offer regular updates? Are all the decisions, new projects, features transparent? Any communications they have displayed – or lack of thereof – regarding any part of their project are a good sign of how they will act towards their investors in the future.
Do their goals seem realistic?
Look for details in their business plan. In this part you are looking for information about the project itself. Some crowdfunding campaigns are started before the founders have any idea of how they will deliver on the product. Does it actually resolve a problem (does it have enough demand, and not so high of a supply)? Is the production process clearly defined in their plans? Do they already have a working product or prototype? If not, is their project even achievable?
Every investor is different, and some might think that the risks of any given campaign to be too high for their taste, while other investors will be more comfortable taking on more significant risks. Finding the right project to invest in can be daunting, but we hope we have made it easier for you to find the right one for you.
That is it for this blog post, be sure to check out our earlier posts for more great tips at blog.inocoin.eu
If you want more advice or have a question about our platform or even if you just want to chat with us, come join us in our Telegram group: https://t.me/InoCoin2018