How do crypto projects get funding?

[lumierre]

There are some more ways, but the way how projects get funding depends on the type of the project. For example, if it is a yield farming and staking platform, they don't organise any presales. They have native tokens, but people buy them to stake, and also they are given to people as rewards in different pools. So this way, projects can get money from fees, and also developers usually have a part of native tokens, so they are interested in their token being traded.

[TheUltraElite]

STO -snip-

This is completely incorrect and this mistake is what scam projects have used to scam newbies. STO tokens are not securities. The SEC does not recognize and cryptocurrency as a security and therefore the term is a wrong application. I suggest you to edit this part of the OP to make sure no newbie falls prey of STOs anymore.

Although they no longer exist since SEC made its stance clear, they quickly moved to IEO and IDO.

Another big source is private funding which is unknown to most people who enter this sector but a very important factor which makes a lot of impact. It is the reason why the projects dump and never come back up again. Advisors/VCs pay to get a locked in amount of tokens that are sold at a specific time period unknown to public funding. Hence any project that you try to get into, it will end up as a failure if this period it not tide over. In most cases they cant and they go bankrupt once advisors pull out.

[Galley]

Investing in projects is risky in any case, no matter how the fundraising for it takes place. No one guarantees that the team of a seemingly already launched and well-oiled project will not end up being scammers who raised investors' money for an ideally excellent project and suddenly disappeared without a trace.

[masterrex]

ICO
The most well-known form of crypto is Initial Coin Offering (ICO). An ICO is a place where a project is created to raise funds by selling their own crypto asset tokens.

Basically, each token is a block chain that is similar to or equal to a share in a stock that is open to the general public - so you can make a comparison that an ICO is another variation of an Initial Public Offering (IPO).

Crypto projects can also raise funds through a Security Token Offering (STO), Initial Exchange Offering (IEO) or Initial Dex Offering (IDO).

STO
STOs are slightly different from ICOs. Securities tokens represent investment contracts that are the subject matter of investment assets, such as stocks, bonds, funds, and real estate investment trusts (REITs). Securities tokens have many advantages because financial regulators regard them as securities. The high level of security makes it very popular among investors.

IEO
IEO (Initial Exchange Offering) is an alternative to ICO where project tokens are sold directly through a crypto asset exchange. Unlike ICOs, IEOs are not open to the general public and any user wishing to purchase the token must do so through an Exchange account.

IDOC
IDO (Initial Decentralized Offering) is very similar to IEO, but IDO is on a decentralized Exchange.


or is there another way?

I think you already mentioned all, of the common and most used methods to get funded, But sometimes crypto projects are just self-funded, and sometimes from VC or Venture Capitalist or from the private individuals, then the common practice the offerings. But for the safety, of funds, I will choose the IEO method if it was done on a trusted exchange like Binance.   

[deathcode]

I think you already mentioned all, of the common and most used methods to get funded, But sometimes crypto projects are just self-funded, and sometimes from VC or Venture Capitalist or from the private individuals, then the common practice the offerings. But for the safety, of funds, I will choose the IEO method if it was done on a trusted exchange like Binance.   

it is the safest method I think. but seeing the success of the IEO is also not so great, even more, scam projects. then it is indeed better to join the IEO on a big exchange like binance. exactly as you said.
The first funding is the most central to start the project. therefore private sales which sometimes contain part of their own team are also important to take part in sales.

[AhmadM]

Investing in projects is risky in any case, no matter how the fundraising for it takes place. No one guarantees that the team of a seemingly already launched and well-oiled project will not end up being scammers who raised investors' money for an ideally excellent project and suddenly disappeared without a trace.

To be fair, every single investment has its own risk if someone is not brave enough to take the risk plus doesn't want to encounter the worst scenario in his investment later then it would be wise to don't jump in at all, hold and keep the funds in the pocket tightly.

[Evgenklm]

ICO
The most well-known form of crypto is Initial Coin Offering (ICO). An ICO is a place where a project is created to raise funds by selling their own crypto asset tokens.

Basically, each token is a block chain that is similar to or equal to a share in a stock that is open to the general public - so you can make a comparison that an ICO is another variation of an Initial Public Offering (IPO).

Crypto projects can also raise funds through a Security Token Offering (STO), Initial Exchange Offering (IEO) or Initial Dex Offering (IDO).

STO
STOs are slightly different from ICOs. Securities tokens represent investment contracts that are the subject matter of investment assets, such as stocks, bonds, funds, and real estate investment trusts (REITs). Securities tokens have many advantages because financial regulators regard them as securities. The high level of security makes it very popular among investors.

IEO
IEO (Initial Exchange Offering) is an alternative to ICO where project tokens are sold directly through a crypto asset exchange. Unlike ICOs, IEOs are not open to the general public and any user wishing to purchase the token must do so through an Exchange account.

IDOC
IDO (Initial Decentralized Offering) is very similar to IEO, but IDO is on a decentralized Exchange.


or is there another way?

you seem to have listed all the popular types of investment, the only ICO is already a relic of the old one, now IEO is most often found, which has been in demand for a long time and shows good results on top exchanges, although not everyone succeeds, but top exchanges are doing well with it.

[RussianEnglishTranslation]

ICO
The most well-known form of crypto is Initial Coin Offering (ICO). An ICO is a place where a project is created to raise funds by selling their own crypto asset tokens.

Basically, each token is a block chain that is similar to or equal to a share in a stock that is open to the general public - so you can make a comparison that an ICO is another variation of an Initial Public Offering (IPO).

Crypto projects can also raise funds through a Security Token Offering (STO), Initial Exchange Offering (IEO) or Initial Dex Offering (IDO).

STO
STOs are slightly different from ICOs. Securities tokens represent investment contracts that are the subject matter of investment assets, such as stocks, bonds, funds, and real estate investment trusts (REITs). Securities tokens have many advantages because financial regulators regard them as securities. The high level of security makes it very popular among investors.

IEO
IEO (Initial Exchange Offering) is an alternative to ICO where project tokens are sold directly through a crypto asset exchange. Unlike ICOs, IEOs are not open to the general public and any user wishing to purchase the token must do so through an Exchange account.

IDOC
IDO (Initial Decentralized Offering) is very similar to IEO, but IDO is on a decentralized Exchange.


or is there another way?

skyward finance has a unique IDO system

[Mcphail]

or is there another way?

As it was mentioned. There are plenty of ways such as private funding. This is the most easiest way for a project to gain funds. Even the project havent started yet. There are somw who gain interest to offer some money in order to support a start up project provided they get the fund with a lower seed price. This is the most risky of all since werent sure whether the platform would go live and could return their investment or luckily earn some profit from it.

Private funding has the disadvantage of being a whale. It has an impact on the development of the project, casting pressure is a common problem.