Itstarted with an idea. An idea so potent you should barely stay put. Thoughts to put down in black, white, and squiggly red. Boards to be bought for linking those thoughts — erasers too for when they start to stray. Charts and tables to be hewed out from base figures. Accounts to be audited — “Seriously, 10 bags of Gummy bears?”.
You emerge from the heap of papers that some have taken to be your second skin and presented your idea. Their response? A quickening that summons more boards, charts, and records. You were right, they finally declared as the same idea that had barreled into your mind starts to take root in theirs. All those months of backbreaking work was finally paying off. The fledgling was ready to fly — ready to go public on an exchange! Exciting times ahead — or so you’d thought until you met the underwriters.
The process of turning a private company into a publicly traded one is know as an IPO (Initial Public Offering). Through IPO, the ownership of a company is offered to the public as investment in exchange for capital. Owners often stand to make millions when their company goes public, awarding themselves a significant percentage of the stock. IPO can also help companies attract top talent because they can now offer them stock options. However, before all this is possible, there’s still a lot of work to be done — starting with the underwriters.
Usually a bank — or a multiple of banks — an underwriter have one simple task; what type of security to issue, best offering price, the amount of shares to be issued and the timing. OK, maybe not as simple as you’d thought at first, but still… Underwriters also research and assess the risk associated with the offering and tries to accurately price the risk, while setting fair premium rates for insuring policyholders. They may also look into acquiring new management and setting up a board of directors to run the company.
https://techcrunch.com/2018/01/16/2018-could-bring-the-ipos-that-tech-has-been-promised-for-years/
Wait, what? You lose your company? Well, it’s no longer a private entity. It’s a public one now. If the public has no faith in your ability to lead the company in its new capability, well it’s Vox populi, vox Dei. Also, you should know about the lockup period. What’s that, you ask? Well, it’s a contractual caveat stipulating a period of time that the company’s insiders and investors can not sell their shares after going public. After the lockup period expires, share prices tend to tank a bit — you know, people cashing in on their investment and underselling — but don’t you worry about that Vox populi, vox Dei!
OK, this is definitely not as simple as you’d thought at first!
IPO requires a lot of work and a deep pocket to bankroll the team of experts helping you navigate the complex waters of regularization at every step. This is often very distracting for the management team, tends to hurt profit, and at the end of it all, you will have to contend with Vox populi, vox Dei at every turn — which is never really the voice of the public, but the voice of a board of directors and their personal agendas. Or, you could just ICO.
ICO, or Initial Coin Offering, is an emerging crowdfunding process that leverages the immutability and security of blockchain technology to offer products or services as electronic assets. These assets represent the participant’s stake in the project.
With ICOs, developers no longer need to toil away building up a business (but it does help to have one) and spend everything they have on going public in just one geographical location when they can tokenize their products for the global community to participate in. The decentralized nature of the blockchain has finally made it possible for anybody, anywhere to participate in public offering or offer their services to the whole world.
ConnectJob is a frictionless, service engagement portal where users can engage professional jobbers for their daily chores through smart contracts.
ConnectJob is currently offering its CJT service tokens at 2400CJT/ETH using Ethereum (ETH), Bitcoin (BTC), Litecoin (LTC), Dash (DASH), or in fiat (USD/EUR) with over $4 million raised already! ICO runs from 12/01/2017 to 04/30/2018.
For more information please visit: http://ico.connectjob.io/
Telegram Channel: t.me/connectjob
