Influences on Capital Raising with Initial Coin Offerings

Nowadays, many new ventures are financed by so-called initial coin offerings. To understand the complete context this master’s thesis introduces blockchain technology and corporate financing with offering. An increasing number of companies are attempting to raise capital through initial coin offerings. Many factors have an influence on raised capital. The question of which factors have an influence is examined in this paper. The methodology (linear regression) used in this thesis to answer this question is explained. Subsequently, various factors that have an influence on raised capital are analyzed and compared. As a result, several variables were found to have a significant influence: if the duration of an initial coin offering is high or an initial coin offering has got a know your customer procedure of the investors, the raised capital is significantly lower than without. When the interest in bitcoin (the most common cryptocurrency) is high, the raised capital is also high. The rating of initial coin offerings on the ICObench.com website also has an impact: if the ratings are higher, the raised capital is also higher.Furthermore, the factors like number of employees, number of tokens for sale, and the size of gross domestic product per capita have a positive influence on the raised capital. Finally, these findings were transferred to security token offerings to make assumptions for the future.