ICO Book Building

Book building is the term used in the financial markets when an advisor creates a book of potential investors for a fund or project. RAMP uses the same structures when providing this service, however, the book builder will become a member of your core team for the duration of the pre-sale. Book building is essential in maintaining structure to your raise and enabling that strategic partners are provided with the right attention and access to the correct sale tiers. Failure to do so can have negative consequences for the project in the long run.

Book building falls into two distinct categories.

Central book building:

This is the teams primary contact person for the pre-sale. The central book builder will deal with all enquiries about the pre-sale and help determine if the potential participant has the qualifications to become a strategic partner. The central book builder will initiate an outreach program which is designed to put your project in front of funds, institutions, pools and HNWI’s. Central book builders will also have in depot knowledge of regulatory parameters to which your project must adhere to. It is essential to remain within regulatory guidelines whenever possible. Your sale structure and licensing will determine which investors and potential participants can be approached. Accreditation and geographic location are of utmost importance in regulatory compliance. While ICO’s remain in the gray areas in many parts of the world, some countries retain the position that all ICO’s are securities and as such require correct licensing in order to approach citizens and residents of these countries.

Central book builders will also ensure KYC and AML standards are adhered to and are in place for the entire project. Many pools will try to circumvent these rules through single person allocations. Special attention should be given to monitoring pools. The negative consequences of such actions being allowed range from fines to imprisonment.

Another aspect which falls under the control of a central book builder is control of external book builders. Determining finder’s fees in conjunction with the CEO is done prior to the sale as to not affect tokenomics during the sale.

External Book Building:

External book building is performed by freelance fundraisers who generally have access to pools or a network of HNWI’s, their performance is remunerated on a commission only basis and they will work with the central book builder to acquire participants. The given range of commission which is attributed to external bookbuilders ranges from 3% up to 20%.