Many great inventions and art masterpieces wouldn’t be made if not the patronage. It is enough to point out the Galileo, who without the Grand Duke generosity wouldn’t be able to work on the heliocentric theory. Michelangelo without the Julius II support would have never been painting the ceiling of the Sistine Chapel. And even if couple centuries passed from that time, a helping hand can turn even the most visionary project into the reality. Meet the Iconiq Lab project, which aim is to help the dreamers.
Since last couple years, so when the ICOs appeared on the crypto market, the crowd sales became incredibly popular. According to the data collected by the ICONIQ team, a number of ICO project increased 5 times between 2016 and 2017. During that period the market capitalization went up 35 times and 39 times more funds was raised via ICOs.
Since last two years, hundreds of different teams were doing the token sale. And I can say, basing on my experience as an analyst, conducting the ICO is not an easy thing. Why?
Firstly because of lack of the experience young teams suffers from. Pretty often the community is too small or the whitepaper is too technical, or on the other hand, it doesn’t contain all needed information. I won’t even mention the legal issues or for example the programming mistakes.
Secondly, because of the high costs, the team has to pay to make their token sale smooth. What kind of expenses do I think about? For example, taking part in the conferences (direct marketing), or high-quality PR materials will cost a lot. Besides, as far as I know, being listed in crypto orientated media is not always for free.
Thirdly, lack of contacts. Until the crypto world is pretty small, and very likely even after, having a personal touch with the investors is a must have for every collecting team. In the world with scammers waiting on every corner, just the trust, based on real contact can help in founding.
Mentioned problems, as well as many other ICONIQ, promises to resolve for the team. Let’s have a look at their offer
ICONIQ offers for chosen project seed funding – which can give them a ticket to the moon. But this is not all. ICONIQ also promises a business development and marketing support. And what is a crucial in case of a young team, the networking? Besides, there will be a legal guidance provided and teams can take part in a global roadshow.
If I could compare projects appearing on the crypto market, to the houses, I would say that the great share of them are the cottage houses, mainly with one or two floors and dull design. But in our pretty boring suburbia neighborhood, from time to time it is possible to find new and shiny skyscrapers. For me, ICONIQ is one of them.
Just to remind you, ICONIQ is a hub and accelerator for new ICO projects. More detailed description you can find here: https://steemit.com/ico/@annahare/iconiq-an-ico-hub-fuelled-by-the-blockchain-description. ICONIQ offers a hand for new ICO projects. Their help includes for example a seeds funding (up to 200 000 euro), legal and technical advertisement, marketing support, networking and more. For the chosen team a cooperation with ICONIQ means taking part in 12 weeks accelerator program (1 week of workshops, 10 weeks of roadshow and support, 1 week of presale for ICNQ Club Members). Later the project goes under the ICONIQ Lab wings, where the online support for ICO and after is given.
Nothing wonder there was a line of projects wanted to gain such as business angel like ICONIQ. Let’s check how the selection process looks like.
The first part of work on the pitched project is called “accelerator”. During that time project goes through the ‘due diligence’ process which consists of 15 steps. All begins with screening the application, scam check, pre-selection and etc. Then the first contact is made and documents collecting begins. Shortly after the documents analysis starts and the follow-up call is made. Later, project teams are invited to the personal meeting. Then goes the technological, liquidity, legal and token review. Shortly after the contract is made and as it follows the ICO expenses are covered.
As I wrote before there was a queue of projects wanted to grow with the ICONIQ. They received 165 applications from 37 countries. The biggest number of projects was placed in the Western and Eastern Europe (43% and 22%). 20% of projects were from North America and just 3% from Latin America. If we talk about the project's idea, 27% were from the healthcare and insurance industry. 17% were specialized in high tech and just 2% were the utility tokens (used as a payment form in the project ecosystem).
From 165 applications, 80 were chosen for a personal introduction. Another 50 went further and has been asked for their documents. 18 went through the due diligence process and just 5 qualified for the accelerator.
Let me introduce the winners, top 5 projects you will see soon on the crypto market.
ICNQ membership token is based on ERC-20 protocol. From 20 million issued tokens, 15 million were available for purchase through the crowd, private and institutional sales. The token itself (ICNQ Club Membership token) is a fuel for the accelerator program.
Today, when the ICO has finished the project sold 5,7 million of tokens, which gives 34% of the aimed amount. Although this number can be a bit higher when all payments will be calculated:
What makes a very good result in the actual market situation.
But it means that data of funds allocation is not actual anymore. For our usage lets change millions into the percents. So 50% of the funds is a self-sustaining pool which will be used for covering the participants' expenses. More about the offer for start-ups you can find here: https://steemit.com/ico/@annahare/iconiq-an-ico-hub-fuelled-by-the-blockchain-description
20% will be used to scale the accelerator, 10% for covering the marketing expenses, 10% for covering finance and legal expenses and last 10^% for the new business launching in the Iconiq Lab chain.
If we talk about the tokens usage. 75% were available during the pre-sale and sale (15% for a presale, 15% for the crowdsale and 40% for the institution sale). 15% will go for a team and 10% will make a reserve fund. 5% will be given for the bounty campaign, 15% goes to the team and advisers and 10% will be kept for the further use.
The ICNQ token holders becoming the same ICNQ Club Membership. This is giving them some privileges like the access to the exclusive presales and discount rights, of course until they hold the tokens.
ICONIQ in their Whitepaper pointed out even more benefits:
‘The main benefits of the ICNQ Club can be summarized in the following ways:
1. A curated flow of attractive, high potential ICO participation opportunities
2. Exclusive access to presales of accelerator graduates
3. Exclusive access to extensive information for evaluating ICO participation opportunities
4. Extensive transparency with detailed, standardized reporting on uses of funds, financial performance and milestone achievement.
5. Market-based valuation for their ICNQ and accelerator token holdings through due diligence performed and liquid exchanges.’
Below you can see how the discount scheme is going to work.
I already wrote in one article that ICONIQ reminds the skyscraper in suburbia. Indeed the whole complexity of this project is amazing. One of the reasons for me to think so it the cash flow model.
Below, in 5 steps scheme, you can see this clockwork mechanism.
If we talk about the money it will be in a good manner to tell you who stands behind the tokens. ICONIQ Lab Holding and ICONIQ Lab Accelerator are officially working companies with the registration address in Germany.
The main partner for the ICONIQ is Finlab, which made a strategic investment into the ICONIQlab.
About a week ago I had an interview with the CEO of a very popular project. He told me a crucial thing for every ICO team who wants to be successful. The road to the victory goes through the community. Speaking other words, bigger community = bigger commercial success. Of course this a simplified equation and even the biggest community will not bring you much if the project is just a piece of crap. But let’s abstract from this kind of situations.
ICONIQ collected a pretty big community around their project.
29 746 Telegram members are couple times more the average project during the ICO collects.
Although just 1667 followers on Facebook is much less impressive. Very likely due to the Facebook cryptocurrency advertisement limitations ICONIQ decided to not develop this channel.
ICONIQ Twitter account has 25 300 followers, which set up my personal Twitter followers number record.
This number clearly shows the great potential ICONIQ community has. Counting that not every Twitter user has the Telegram and the way around we can say that ICONIQ has a community consisting of 40 000 potential buyers. I am impressed.
ICONIQ marketing department made a good job also in a media coverage matter. ICONIQ lab has been mentioned in Reuters, Business Insider, Bloomberg, Yahoo, Focus, Morning Stars. Also crypto orientated media like Cryptodaily, Cryptocoinportal, The Cointelegraph, CryptoNinjas gave some attention to the ICONIQ lab.
Besides, ICONIQ is active in direct marketing, including meets up, conferences and summits.
Project CEO is Patrick Lowry, venture capitalist and investor with 8 years of financial industry experience, PwC auditor and startup co-founder. Not less experience in venture investments topics has Max Lautenschaeger, sourcing director & MP - venture developer with 3 years of experience in consulting, company building, FinTech and private equity. It looks like their life experience in investment brought them the ICONIQ idea. Third, the most important person on this team is Dominic Ward, a U.S Managing Director. But of course, the project wouldn’t be so successful without the responsible Technology Director. Oz Barmatz is an experienced CTO, serial entrepreneur and full-stack developer. He co-founded and served as Epiphyte Corporation’s CTO and is advisor CTO to the ProCircle Network. Three other directors are responsible for the strategy (Sandris Murins), marketing (Arabdha Sudhir) and portfolio (Lukasz Musialski).
What you can see in this picture is not the whole team. Directory board supports managers including Syuzanna Avanesyan responsible for communication and Lukas Fiedler – community manager. Team fulfills Daniel Rösch - Corporate Design Expert and Andreas Mikolajewski Technical Consultant.
Obviously, there are plenty people working on the backstage of this project. It is impossible to make such a complex IT part just with two team members. Very likely also marketing team has some support. Whoever worked on this project, they made a very high-quality product.
ICONIQ in the advertisement materials called their advisers a world-class. Indeed they have many world-famous faces like for example David Drake or Ian Scarffe. I am also sure that for example prof. Dr. Philipp Sander – head of Frankfurt School Blockchain Center or Dimitri Chupryna – the TaaS Co-founder can bring a lot to the project.
Of course, besides the advisers, ICONIQ has a great support from their partners. These were divided into official documents for 3 groups – legal & research, investment & pipeline and crypto specific. Whole list you can find below. I am sure that with such strong partnerships if the situation on the market would be better, the number project collected would be significantly higher.
ICONIQ Lab has global ambitions. As we know the initial program was launched in Germany. This year in summer, there will be a formal launch of the New York City Accelerator. The same year another Accelerator will be open in Singapore.
Now couple words about the project history. ICONIQ lab was born in early 2017, in August the same year the core team was complete, and ICONIQ Lab registered. In November, FinLab AG made a seed investment and in February the private sale was closed gaining 1 mln. USD. The same month ICONIQ has an official launch in Germany. In April the token sale began.
As I already before ICONIQ Lab chosen 5 start-ups for their hub. Better remember these guys, they might be legendary one day.
PROs and CONs
Every project has stronger and weaker sides. But I can call the project good if there is a positive disproportion between the pluses and minuses. ICONIQ is undoubtedly such a case.
- Project concept
- Smart funds usage and money flow concept
- Strong team, well-known advisers and big partners
- High-quality PR and marketing materials
- Big community
- Timing. I am not sure if this can be called disadvantage but ICONIQ team chose the worst time since last two years for the ICO conducting. If they would decide to make a project during the growth time instead of the drop the funds they collected would be much higher
- Insurance. The concept shows just the cases of ICO successful projects. What if couple hub projects will not collect enough? Crypto market is so uneasy this day, that may be an insurance system should be somehow into this process involved? Or at least higher reserve found.
Check the links below if you want to learn more:
Presentation/ color paper:
ICONIQ ICO is over, but you can always purchase their tokens on the stock in the nearest future: https://token.iconiqlab.com/icnq-club-members/