You may have heard the term ‘blockchain incubator’ in the news or media lately but are unsure as to what it means. This article will outline the meaning, importance and steps to enrolling in one.
What is a blockchain incubator program?
A blockchain incubator program aims to support to start-ups and entrepreneurs in the emerging industry by providing training, financing and networking opportunities. They are typically run by consortiums or companies. Programs generally cover the three key stages of a start-up’s development: formation, pre-ICO (Initial Coin Offering) and post-ICO.
What is Initial Coin Offering (ICO)?
ICO is a way of raising funds for cryptocurrency start-ups. It involves the offering of units or tokens to investors, who provide payment in the form of another cryptocurrency in exchange. The benefit of ICO to investors is that they get a stake in the company – in the hope that it will eventually appreciate in value (so that it can be traded for a profit).
The current major global ICOs are:
- Sirin Labs Token
Combined, these 6 ICOs have raised over $1 billion. It’s big business!
Why are blockchain incubator programs important?
At just ten years of age, the field of cryptocurrency technology is still in its fledgling stage. In order to help the industry grow, adequate support, funding and training are essential. Placing start-up ventures in a blockchain incubator program is a great way to nurture and develop them to the point where they become self-sufficient, powerful and high-value players.
What exactly do they provide?
Blockchain incubator programs generally focus on two key areas – technology and business. The former offers insight into cryptocurrency technology and how it can be applied as a business solution. The latter provides help for those who lack the knowledge of how to establish their idea as a solid business; it usually offers business education, industry connections and investment opportunities.
They typically offer the following services:
Matching entrepreneurs with people who have a higher degree of experience in the field is a great way to transfer knowledge and wisdom onto up-and-coming industry players.
Workshops are a great educational tool, providing those working in start-ups with business and industry information from experts in the field.
Community events & networking opportunities
Attending community and networking events are great ways to get involved in the cryptocurrency community. They allow those in start-ups the opportunity pitch their business to investors and the government and the chance to meet other likeminded people.
While having adequate financial resources is crucial for any business, it’s especially important in the cryptocurrency field – emerging start-ups require greater resources initially in order to find their feet. A blockchain incubator program may be able to provide financing and investment opportunities to entrepreneurs.
How do you get into a program?
To enrol in a program, first locate a blockchain incubator provider. There are many around the world, including Melbourne in Australia. Read the information on their website or contact them to find out about what their program offers and how to apply.
Providers will typically select the start-ups that they feel have the most potential, though don’t let this deter you – some companies aim to provide programs to more than 1,000 start-ups annually, which means there’s plenty of room for everyone. Do your research in order to find the program that suits your start-up best.
In a competitive international market it is essential that start-ups acquire every advantage in order to be commercially viable. Blockchain incubator programs provide start-ups with the support and resources necessary for success.