Methodology of the analysis is based on the approaches used in the evaluation of projects, which raised venture financing. It is based on the works of recognized authorities of the venture ecosystem - Josh Lerner and Steven Kaplan -, and on personal VC-experience of founders, considering specifics of ICO
Evaluation system developed by the team of project is based on the analysis of the most important parameters of any project: product, market, team, business model and finance. Final rating of each project is made by assessment of 35 project’s criteria.
Here are some of them - the most important to take into account when considering each of the categories.
- Completeness of the team: the areas of responsibility are divided; key competencies are closed;
- Team members have extensive experience in the industry and with specific technology
- The participants' motivation is aligned: management has options, founders have invested are ready to invest their own funds
- Current stage of product development: alpha-version, prototype, working sample, etc. Does GitHub or another hosting service register the dynamics of product development progress?
- Feedback from clients: opinion about project in the Internet (comments, social activity, prompt reception of updates)
- Level of adaptability: high tech/technical edge/high-level R&D
- Size and scale of the market: regional or global, volume in money
- High growth rates of the target market
- Company's conformity with market trends
- State of the competitive environment in this segment of market
- Does the company provide adequate current and achievable, metric-based, forecast financial indicators?
- Comparison of valuations: project that attracts ICO and its analogue, which successfully raised venture financing
- Estimation of volume of attracted investments - verification of compliance of requested financing with the purposes, cost items, by comparison with cases from open market
- How the Blockchain Technology could change Business and its operational and financial aspects
- Analysis of type and role of token
- Guarantees for investors (escrow, guarantees against misappropriation of funds and of team change in case of ineffective management)
- Does company’s model suit with current law structure?