Two business accelerators, Starta and Cross Coin, will soon launch an ICO as a means of raising funds for their current batch of tech-startups.
ICO Funding: The Democratization of Venture Capital
Starta’s aim with this ICO is to “bridge the gap between ordinary investors and venture capital opportunities by using the blockchain.”
They want to make venture investing accessible to more people by using the ICO model where anyone can buy their token, thus allowing them to buy a stake in their startups.
According to them, the project represents a hybrid between old and new forms of investing and has been described as the future of venture capital.
Their project leverages the Waves blockchain, which allows it to be more flexible than current venture capital arrangements as their token can be traded on the Waves DEX and other supporting exchanges.
iCoinSoftware, one of Strata’s companies, is a blockchain startup that allows users to launch a digital currency exchange in two weeks, and to receive revenues from trading commissions on blockchain assets.
It was through iCoinSoftware that they learned about blockchain technology, which acted as an impetus for their decision to do an ICO in the first place.
Additionally, their goal is to raise at least $1.5 million USD with this initial coin offering in order to re-finance the current 21 companies in their accelerator.
The crowd sale is capped at $5 million, with any additional funds above the $1.5 million mark being used for a new group of startups. The ICO itself will launch on July 4th.
About Starta and CrossCoin Ventures
Starta Accelerator 16/7 LLC is a Special Purpose Vehicle (SPV), valued at $3 million USD and currently holds a portfolio of 21 technology startups that have been handpicked and accelerated by their Starta Accelerator program.
Its main purpose is to help invest in early stage technology companies from Eastern Europe via acceleration in the US. Furthermore, it owns an average of 7% equity in each company at a $2 million valuation.
All 21 companies that Starta currently counts as part of their acceleration program are at the post-product stage. In other words, they are at a point where they have developed their market-base.
They also noted that they have gained traction in US markets in addition to their home countries.
CrossCoin Ventures is a “digital currency accelerator” and was incorporated in Singapore with one purpose in mind: to invest in the Starta Accelerator program.
Per their mission statement, they help venture funds, accelerators, and startups raise capital using crypto assets.
What do you think of Starta’s ICO? Is the ICO a viable alternative to traditional capital investment? Let’s hear your comments below.
Images Via Starta, CrossCoin Ventures