Start-ups play a significant role in the growth of the economy. They are the major sources of employment and are better innovators than the large companies. During times of economic boom, large companies hire more and release the workforce during the recession. But start-ups continue to emerge and offer employment as they are driven by breakthrough innovation. Big corporations view risk differently from start-ups; big corporations try to encourage risk-taking but on a calculated move but start-ups know that even if there are one in ten chances of hitting it big they will go for it and the reward is a massive return on investment. Interestingly it has been shown that start-ups for the majority are financed by venture capitalists and this happens later in their development.
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140 Million Dollars Raised
So when start-ups in Slovenia raised a whopping $ 140 million last year it was no doubt start-ups relevance 
to drive world economies is not a matter that can be ignored. But how have the Slovenian start-ups been able to dominate world headlines for their innovation? The first reason is that they have been able to take advantage of the cryptocurrency craze. They have embraced crypto financing which in other words is referred to as Initial Coin Offering (ICO). Crypto financing through ICO is a way of fundraising where the supporters of a start up pledge crypto coins to be used for development of the company’s idea. And you’ll find some of the most developed start-up’s companies being funded by ICO coming from Slovenia thanks to crowdfunding.
Kickstarter
Kickstarter which was started around eight years ago helps start-ups to acquire support for developing their business ideas and so far it has helped raise billions of Euros in addition to the launch of over a hundred thousand projects. And it’s this platform Slovenian start-ups are using to raise billions of Euros which is then used as a seed capital.
A Watertight Process
In ICO there’s a predetermined amount of coins set aside for a certain price. These can be bought by the 
avid supporters. Then it’s up to the start up to convince the users of their vision and idea and also present their crypto coins to them. Depending on the success of the company and potential, initial investors stand to gain more as the company grows in value. ICO is a watertight process which happens on a reliable public blockchain hence regarded highly therefore when start-ups introduce their crypto coins for their business solutions supporters and users are willing to participate. Due to high trust levels, start-ups sell their products and services while being paid through their own crypto coins.
Leading Start-ups
Among the most successful start-ups last year is Origintrail which raised $22m while Celtra, Tokens, Cofound, and Layer raised $15m each during ICO.
Though these start-ups are in Slovenia a report shows that most of the capital comes from abroad and therefore those who benefit more are the foreign investors. So as the Slovenian start-ups innovate, it’s only fair for the local investors to up their game and start supporting more of their home-grown talent. In turn, it will have a far-reaching effect on the country’s economy.
