Everything you need to know about white paper, including important white paper statistics with facts and figures.
In simplest terms, a white paper is a document explaining a particular topic, idea or project for potential readers, which can be product users or project investors.
A white paper can be a crucial document for every type of project in every industry, particularly at the initial stage when the company is looking to establish its credibility or attract potential investors to raise funds for its project.
You can also think of a white paper as a long-form investor pitch deck, which involves crucial details of the project, including the plan, mission, vision, technology, product, use cases, investor benefits, team, roadmap, and more.
White papers have been particularly popular in the ICO (crypto fundraising) space lately, as a way for creators to pitch their ideas to potential investors while also educating potential users about their products, tokens and use cases.
When starting a project in any industry, a white paper can be your best companion to not just collect all your ideas, roadmaps and wireframes in a single place but also as the most comprehensive document encompassing all the information of the project that you can or want to tell the public.
On that note, here’s everything you need to know about white paper development, including important white paper stats, terms, definitions, white paper templates, facts, figures, and frequently asked questions.
White Paper Meaning – What’s a White Paper?
White papers are utilized in practically every industry, and different industries may have different definitions for white papers. In politics, for instance, a whitepaper may refer to an administrative document explaining a proposed solution to a political situation or problem.
However, the most common use of a white paper is in the business space, where it may be utilized to explain a concept, a new idea, or a project.
According to white paper development experts at SAG IPL, the most suitable definition of a white paper is this: “A physical or online document written as a comprehensive, research-based, and accurate report explaining a particular topic or idea often presented as a solution to a given problem.”
White papers can also be viewed as detailed guides on specific topics.
The purpose of a white paper can be anything, from educating the target audience to gathering leads and encouraging investment in a project.
Businesses or companies creating a new product or working on a new project often release white papers to educate their audience, including potential users, investors and clients, about the project and how it intends to solve a particular problem using a particular process, technology, or methodology.
In the blockchain space, for instance, we write white papers to educate the target audience about a project’s concept, idea, and technology and how they contribute to building a viable solution to an industry problem.
Another common purpose of a blockchain whitepaper or ICO whitepaper is to educate potential investors about a project’s purpose and use cases to persuade them to invest in the project.
A white paper is also sometimes used to explain a complex topic in simple, user-friendly terms, particularly in technical industries such as information technology.
However, a white paper should not be used to exclusively promote a product or only as a pitch to attract investors. Its core purpose should always be to inform users with facts and evidence.
White Paper Terminologies and Definitions
There are many components of a white paper. Here’s a brief introduction to the different terminologies used in a white paper document:
White paper – a research-based, accurate document containing information about a particular topic or product.
Abstract – a brief overview of the white paper’s main theme and subject.
Table of Contents – a list of all the topics covered in the document.
Introduction – an introduction to the white paper document, what it is, its purpose, and the underlying project or product.
Problem – explaining the problem/s that a given project intends to solve.
Proposed solution – a brief overview of the proposed solution to the mentioned problem.
Background – a look into the project’s background, market research, what inspired the project’s idea, and the people behind it.
Product – It can be a physical product, a digital item, a technology, or something else that the creator is trying to build as a solution to the mentioned problem.
Technology – whether any specific technology or technologies are being used, such as blockchain, artificial intelligence, etc.
Token – for blockchain projects, it refers to a cryptocurrency that is primarily used as a token to be offered in exchange for investors’ funds.
ICO – a type of fundraising, generally used by a blockchain project to raise funds for the development of its product or service.
Roadmap – a timeline of the project, with a brief introduction of every stage in the project along with the proposed schedule.
Team – the team behind the project–a brief introduction to each core member with their photograph.
Use Cases – refers to the actual proposed uses or applications of the product being developed, including its features and benefits.
References – links to the resources used or referenced for the information presented in the whitepaper document.
Disclaimer – an official statement denying liabilities, claims, or warranties concerning the information provided in the white paper.
The above terminologies and components collectively form a white paper template, which is also sometimes referred to as white paper format or white paper layout.
What’s an ICO White Paper?
The term “whitepaper” is most frequently used in the ICO space, where it refers to a detailed document explaining the intricacies of a particular ICO (token sale) and the underlying project in simple terms for the benefit of the target audience, which may include potential users and ICO investors.
An ICO, or initial coin offering, is a type of token sale where the creator sells a new token (cryptocurrency) in exchange for investors’ funds, which are used for developing a proposed solution.
The purpose of an ICO white paper is to explain the various components of the ICO, including its purpose, concept, problems it will solve, the solution, the token, details of the sale, token’s features, benefits & use cases, pricing, distribution, token supply, and more to educate potential investors and persuade them to contribute to the project.
A white paper is a major source of key information for ICO participants.
An ICO white paper template is more or less the same as the format of a standard white paper and may include all the components mentioned above.
Important White Paper Statistics – Facts and Figures
A white paper has always been an integral part of a project. And now, with the ICO evolution, white papers have become even more important, primarily as a way to catch investors’ attention by pitching a new idea or product with a detailed explanation of the concept, technology, and everything else. Here, we take a look at some exciting white paper statistics to understand the significance of white papers in 2024.
- White paper is among the top digital marketing strategies for ICO promotion in 2024.
- 9 out of 10 digital marketers recommend white paper as a crucial component for ICO success.
- Whitepaper availability has a direct impact on the probability of ICO success. Over 70% of ICO projects that do not have a white paper are likely to fail.
- The length of the white paper has also been found to influence the project’s success. 29% of experts believe that ICOs with a lengthy whitepaper disclosing more information have a higher probability of success.
- Similarly, the text complexity (readability) of a white paper is also found to impact its usefulness and may influence the amount raised with the sale.
- According to a 2021 study of 1,258 white papers by sciencedirect.com, “the length is positively correlated with the amount raised during the ICO.” In other words, the longer the ICO white paper, the higher the amount it is likely to raise from the sale.
- Besides the length, the appearance (design) of the ICO white paper is also likely to impact the ICO’s success and the amounts raised.
- Over 20% of investors have accepted that they make their investing decisions simply based on the length and appearance of the white paper document.
- A research study suggests that most ICO white papers are too technical or complex for retail investors to read or understand.
- In a surprising reveal, the complexity of a white paper has been found to boost the amounts raised because a more complex white paper might indicate a better project, persuading investors to buy more tokens.
- The lengthier and more complex white papers are often associated with good ICO projects.
- According to research, the average length of ICO white papers increased over time either due to the improved quality of projects or because creators realized that longer white papers result in successful ICOs.
- ICO white papers are usually written between 20 and 40 pages. White papers longer than 40 pages are quite uncommon and can be too lengthy for anyone to read.
- In 2018, the average length of a white paper for a successful ICO was 38 pages, which is over four times Bitcoin’s original nine-page white paper.
- White papers of successful ICOs are found to talk more about technical details, particularly those related to blockchain and mining.
- The longest white paper in 2018 was Telegram’s leaked paper with 132 pages.
- The most cost-effective white paper in terms of returns per page was released by EOS, which raised a total of $4.2B from its token sale. That’s about $280M per page for a 15-page white paper.
FAQs About White Paper
Here are answers to some frequently asked questions about white papers:
What is the main purpose of a white paper?
As we explained above, there could be numerous purposes for writing a white paper. The most common of these is to present a particular product or service as the most viable solution to a particular problem.
In the ICO space, the purpose of a white paper is to educate and attract investors. For commercial purposes, it could be used to influence the decisions of customers by providing authentic and targeted information about your product.
How long should a white paper be? How many pages should a white paper be?
Here is no definite guide or limit to how long a white paper should be. The average length of ICO white papers tends to be between 20-30 pages. The white paper of EOS was only 150 pages long. The Bitcoin white paper had only 9 pages. However, the length of white papers is often related to their success, and it is said that longer documents tend to result in successful ICOs.
What should be included in a white paper?
We have mentioned above the core components or terminologies used in a white paper. A project document should include all the details of the project that you wish to communicate with your customers and investors.
The format of a typical white paper contains details such as an introduction, problem statement, solution, project details, the token and ICO details (for ICO projects), about the team, roadmap, and technical information.
Why is it called white paper?
The term white paper originated from white-coloured papers designated by the government for public access when assigning colour codes to papers used for different purposes.
Is a white paper peer-reviewed?
Not necessarily. The company might choose to get its white paper reviewed by peers to offer more authentic and genuine information to its readers. But, it’s not always the case.
How effective are white papers?
White papers are among the most common tools used by companies and digital marketers to educate the potential audience of an ICO project, while also using the document as a reference for other content marketing strategies and campaigns to help expand the reach and boost the credibility of the project and influence investors to contribute. According to the white paper statistics, more than 90% of tech buyers use white papers in their buying decisions.
