I have an engineering background in Chemical and Power industry. I have engaged in various positions from engineering to Deputy Plant Management. During my career, I have managed processes with annual operational budgets as much as $50 million and participated in investment projects with as much as $600 million. Additionally, I have been actively in many feasibility studies. Focus of such large-scale industrial plants is of course, to make profit. Always looking for ways to improve efficiency and thus profits needs the right KPI ‘s to be decided and monitoring. Businesses need to have strong financials to be able to survive during recessions and global financial crisis.
I have been investing in ICO's for about two years now. I mostly invest in long term and I have been selecting the projects to invest in by utilizing my evaluation methods I have developed over time in my professional background. Since this is a new ecosystem I have developed new methods to fully comply with the needs of this new emerging market.
Personally, I look at the business model of the project, the value propositions and problems to be solved, the fundraising targets (soft-cap, hard-cap etc.) and roadmap.
The business model needs to be as robust as possible to be able to continue operations and developments independent of the market conditions. It needs to have revenue models which would provide this capability. There are some options exist for projects to have partial freedom from the market conditions. If the business model created is satisfactory to have a successful post-ICO period then I consider participating in.
Organizational structure is another important aspect that has impact on the success of a project. If the executive team is fully composed of technical gurus, I try to avoid investing for long term. But there are alternatives for such projects to have a great success in the token sale period.
It is very crucial to understand what the project offers as a value proposition. I have read a lot of whitepapers with decent value propositions but lacking a clear explanation what they are going to solve as an existing problem. How do you expect an ordinary people to understand the value propositions offered in published media such as whitepaper, website etc. where and educated person can’t understand? Therefore, all media published and provided online needs to be in a structure that an ordinary people would understand without challenge.
The fundraising targets need to be realistic and transparent. There are other options for a business to raise funds so soft-caps and hard-caps for token sales need to be modest. Diversified fundraising methods help projects to have a robust business model, too.
Marketing is another important field of activity for a project to ensure success. There are many options exist on the market suitable for each project depending on the budget ranging from literally free (with native tokens) to tens of thousands of dollars. It is possible to attract loyal and real followers with a limited budget also.
Although I am working for a project right now I have enough time to save for projects to help success of their pre-ICO and post-ICO stages.