Is your start-up idea based on the latest blockchain applications? Are you building a revolutionary platform for finance professionals interested in cryptocurrency trading? Does the way you present your start-up include the word Bitcoin? Then, you probably need to think some ideas through on how to better pitch your start-up to cautious investors.
Pitching Your Bitcoin Start-up
Cryptocurrencies are incredibly hyped in the finance and investment world right now – and there are companies and start-ups springing up like mushrooms. This means that if your start-up’s concept is based around the Bitcoin phenomenon, whether you are engaging in Bitcoin trading or putting its underlying blockchain tech to good use, then you are facing some stiff competition. It is important to know how to deliver a pitch to investors as well as reach out to early customers. Since Bitcoin start-ups abound, you need to set yourself apart – but also mitigate concerns about the viability of your company and identify an attractive market for your potential investors. For instance, if your product or service idea is targeting a niche market, it is a good tip to offer suggestions on how this could, in the long run, unlock adjacent and much wider markets.
The Increasing Adoption of Bitcoin
Since the Bitcoin and blockchain start-up landscape is so saturated already, investors might be more suspicious when they are presented with a Bitcoin start-up. Against this setting, it is a good idea to branch out to investors who might seem unlikely – until you hear what you have to offer. Yet investors who are unconventional picks and not used to dealing with cryptocurrencies or Bitcoin trading might raise concerns when it comes to the volatility of the market, especially about Bitcoin’s market price fluctuation that has overwhelmed even some professionals who trade Bitcoin. You might need to tell a bigger story to persuade them, but it still must be succinct. One possible way is to explain how Bitcoin is increasingly embraced by authorities and the financial services industry, with professionals in CFD and forex trading expanding into incorporating Bitcoin trading. The US Commodity Futures Trading Commission has officially recognized Bitcoin as a commodity since 2015, which means that it can be used in commodities trading, while big companies like Microsoft and Expedia are adopting Bitcoin payments.
coin: Two Sides of the Same Coin?
Yet, if you are looking for an out-of-the-box argument that will resonate exceptionally well with traditional investors, make the case for Bitcoin by comparing it to gold. Just like Bitcoin, gold was sometimes questioned – George Soros called it “the ultimate bubble” in 2010, even though he had just purchased 1.05 million shares in it the end of 2009. And just like Bitcoin, it is mined, which impacted its price violently during the Gold Rush; the World Gold Council has calculated that more than 190,000 tonnes of gold have been mined so far, with approximately 67% of that occurring after 1950. But, in contrast to gold, Bitcoin miners just need a computer to mine it. Bitcoin is currently the world’s safest payment network, offering anonymous, easy and cheap transactions across borders. Value investor Rupert Hargreaves of Motley Fool has said that Bitcoin and gold are very similar in terms of storing wealth, while institutional investor and partner at Pfeffer Capital, John Pfeffer, has dubbed Bitcoin “better than gold on every front”.
While Bitcoin may be relatively new, its similarities to a well-known value medium like gold can go a long way towards making your audience better understand why your startup is the perfect investment. Could it be that sometime in the near future, Bitcoin becomes bigger than gold?