Bitcoin is a relatively new invention and economic model, heading into its eighth year since its white paper was revealed on October 31st, 2008. According to industry leading merchant payments processor BitPay and others, over 100,000 businesses accept Bitcoin. It is safe to assume there are many times that number of actual Bitcoin businesses in existence. Earlier this year, out of all of these candidates, only one of them, The Bitcoin Group in Australia, have had an IPO of any notable scale.
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Bitcoin.com asked Bitcoin Group founder Sam Lee how this was done within the Bitcoin space. He revealed the secrets to his success of how to go from Bitcoin to the Australian Stock Exchange (ASX). Hopefully, this can help some of the future movers and shakers in Bitcoin take that next step in their business. This is what Lee said at the time about going IPO.
“The public offer will mark a significant milestone for our company and for the broader industry. It will help to advance recent regulatory initiatives by the Federal Government aimed at bringing clarity and accountability around the benefits of Bitcoin to Australian consumers and businesses.”
Although venture capital investment into the Bitcoin industry has broken another annual record, Bitcoin’s blockchain-related companies, not Bitcoin-related businesses, are the ones stealing the hearts of the establishment. Mining companies have spent the last two years since the collapse of Mt. Gox falling by the wayside, so a prospectus in the mining industry should see even more scrutiny from investors. Sam Lee navigated every obstacle to reach economic nirvana. Here’s how.
To open with, I asked Mr. Lee what is most important for a Bitcoin business owner to consider if that is indeed your goal. Where should you start that journey? Lee said you have to know your business, whether it is Bitcoin, in general, Bitcoin mining, or any niche within the industry. Your confidence and knowledge in the industry will open doors and ears.
Next, Lee made sure to emphasize what will work in any business, inside of Bitcoin or not. The founder or owner cannot be an expert at everything, and cannot do everything themselves, so finding great people who can fill in areas of weakness is essential.
“Convince people smarter than me who can cover off my weaknesses to sign-up as co-founders, for bonus points, make sure they are “all in” with their reputation and capital. In my case, I’m lucky to be joined by Ryan “Martian” Xu, who came with over ten years of creativity and industry networks and Allan Guo, who came with sophisticated investors.”
Let’s say you have not been in business for 2-3 years with a customer base that is scaling quickly, and you’re more at the formative stage of your company’s development. If you don’t have the patience to roll the ball yourself for a time, you can build a team around you that will get investors attention. If your team is well built and are “all-in,” you have an important piece of the puzzle.
“Bring on reliable experts to prove the business model (in this case Bitcoin mining) is profitable. Director level experts that were brought on board like Jacob Cheng, Operations Director, came with 12 years of market knowledge and Silicon chip fabrication expertise and Jin Chen, Technical Director with 13 years in logic, systems, and programming expertise.”
If all goes well, Lee says that if you are setting yourself up for success, and delivering on your word, you can “re-raise” capital from the public through many crowdfunding sources, or even a public offering on ASX, like The Bitcoin Group successfully performed in September.
Many businesses don’t even have the great idea part down, much less the team or the initial track record to show their plan can gain traction in the market. Those that have a legitimate idea, business plan and team with a resume in place can go far in the investment world. Take it from Sam Lee, who was the first to prove it can be done in Bitcoin.
What do you think about Sam Lee’s tips? Let us know in the comments below!
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