The first money raised during the token crowdsale will be used to finance the platform’s initial development and its strategic regional outposts.
Cofound.it, a platform for incubating innovative startups that plan crowdsales, has announced the launch of its initial coin offering (ICO). The sale will start on May 24, 2017, and will last until June 24, 2017.
Launched by digital asset investment company ICONOMI, Cofound.it is looking to open a global decentralized platform that will bypass the traditional venture capital model by connecting experts and investors directly with startups.
“The decentralized economy is increasingly recognizing the need to establish and adhere to stricter standards and best practices,” said co-founder and CEO of Cofound.it, Jan Isakovic. “Cofound.it is proud to be leading the market toward a new maturity level by providing high-potential startups planning crowdsales with expert coaching in business development and optimal crowdsale processes.”
Cofound.it will also issue CFI, a token that provides access to the platform’s advanced technical tools and features. The tokens will be sold in exchange for Ethereum tokens during the crowdsale.
“CFI will function as the currency of Cofound.it’s global marketplace platform, which will connect token crowdsale projects with world-leading experts, tools, and services. This platform, built by the Blockchain community for the Blockchain community, will replace the VC funding model and facilitate remote mentorship and collaboration, creating a Silicon Valley for the new distributed age,” Isakovic added.
The company is planning to raise $2.5 million and for each $1 million above the target it will open a new regional subsidiary and hire an additional expert for two years.
Cofound.it said it “has already engaged with more than 40 promising projects over the last several months, with three currently accepted to the program”. Besides, the company plans to launch 10 startup projects in 2017 and prepares to launch up to 30 projects next year.
“The CFI crowdsale will help build a serious contender to the $130 billion startup investment space, eliminate the traditional need for venture capital investment, and empower visionaries to fulfill their entrepreneurial spirit from anywhere in the world, not just Silicon Valley,” Isakovic said.
“Cofound.it is just one example of a crowdsale that every industry, not just fintech, can be disrupted. Cofound. It is revolutionizing the way startups are funded and formed.”
Although ICO is fairly new type of startup fundraising, we’ve already seen some successful ICO campaigns over the last year. In general, blockchain startups raised more than $200 million in cryptocurrency investments.
Only this month, a crowdfunding platform FundYourselfNow, a digital currency platform VIVAconomy, a Russian startup BitCAD, and a blockchain system for music lovers VOISE announced crowdsales of their digital tokens.
A Silicon Valley investor, Tim Draper, will become the first prominent investor to take part in ICO, as he is going to participate in a crowdsale that will be launched later this month by a blockchain startup Tezos.