Who would need an IEO is kind of a very complicated question! Actually an IEO is open to anyone, it is just that the company needs to complete all the required paperwork and formalities, and pass the evaluation criterion of the jurisdiction and the exchange in question, and there are no restrictions beyond that from a literal way of analyzing it. But if we see practically who would need an IEO in the real sense it is completely different from this.
Who Would Need an IEO
Who would need an IEO depends mainly upon what can an IEO be used for. All of us know that IEOs are used primarily for fundraising by startups, so the most obvious answer is any new company or project team, trying to develop a new idea without enough resources, would like to use and would need an IEO, so as to raise the sufficient amount of cash inflow. With an IEO, there is now a need left to go through the traditional models of venture capital and fundraising. IEOs are bootstrapped with a lot of benefits. It allows project teams to raise money directly on cryptocurrency exchanges.
The Checklist: Who Would Need an IEO
One can go through the following checklist to decide as to who would need an IEO. If the majority of the points cited here match your requirements, then you could probably land positive on who would need an IEO.
One whose business shall actively gain from launching the initial exchange offering.
One who is a new company and does not have enough resources, or one who is a new company and would not like to invest its resources as of now in this project.
One who is a pre-existing company, but would not like to spare resources for this new project, or one that is a pre-existing company but needs outside money to survive for some time.
One who is a new business idea, and is just checking the viability of their business proposal.
One who has analyzed other means of fundraising as well, but feels that an IEO could be the most profitable.
One who does not have enough marketing capabilities or resources, but would like to venture into a new startup.
One who has a lot of funds, but no user base, so would like to exploit the user base via some reputed exchange.
If the project team feels that it is yet to mark its name in the industry, and would need a third party accreditation to sell the idea.
One who wants to eliminate the scope of major fraud in its fundraising activity.
Things to Consider
So it would be right to conclude that IEOs are very safe and secure for the project team, and can be rolled out by anyone, but that does not mean that all of us should be doing it. A startup must weigh all the associated pros and cons very thoroughly, and then decide whether or not to step into this venue.