ICO investment, at the end of the day, should follow a similar logic as any other investment into a startup company. It’s true that you invest a lower amount than a traditional startup investor, and you will probably spend less time on due diligence; however, it makes sense to apply the same criteria for assessment:
- How big is the market?
- How experienced and professional is the team?
- Is there a significant differentiation of the presented solution vis-a-vis competition?
- What does a 3- or 5- year business plan look like?
There’s an additional criterion for assessment in the ICO world and it is whether blockchain is inherent and necessary for the solution at hand? If it sounds like adding blockchain on top of whatever it is the startup is selling has been done for the sake of raising funds, run the other way.