Initial Coin Offerings (ICOs) and crypto token sales are all the rage, as shown by the spectacular success of initiatives previously covered by Crypto Insider, which raised tens of millions of dollars with breathtaking speed. This is a roundup of recent success story in the ICO space.
Last week Crypto Insider reported that Blockchain Capital, a Venture Capital (VC) firm that wants to “democratize” the VC industry, raised a record-breaking $10 million in six hours with its ICO. Blockchain Capital’s BCAP tokens, which will be tradable on leading cryptocurrency exchanges, are Ethereum-based smart contract digital tokens representing an indirect fractional non-voting economic interest in Blockchain Capital’s Digital Liquid Venture Fund.
Now, in a new press release, Blockchain Capital is officially announcing the successful completion of its ICO and revealing that tha fund’s first investment will be into Parity Technologies Ltd, the company that created the Parity Ethereum software.
“Now that we’ve completed the BCAP ICO, we are excited to start investing in the best teams pursuing world changing ideas,” Brock Pierce, Managing Partner at Blockchain Capital, told Crypto Insider. “On that note, we couldn’t be happier with our first investment in Parity supporting Dr. Gavin Wood and team!”
Parity Technologies Ltd (formerly known as Ethcore), founded by Gavin Wood, the creator of the Ethereum specification, is the company that created the Parity Ethereum software. Wood has recently also proposed a new heterogenous multichain framework called Polkadot – a third generation public, permissionless blockchain technology designed to be at once scalable and extensible, solving two of the greatest problems preventing widespread adoption of blockchain technology today.
“As we are seeing the next evolution of blockchain technology, we wanted to bring in a funding partner that deeply understands the space we are in and the challenges we are solving,” said Wood. “Blockchain Capital has the expertise and keen understanding of the ecosystem that will help Parity and Polkadot move to the next stage of innovation.”
“We are incredibly excited to be a part of this new and exciting platform,” said Brad Stephens, Co-founder at Blockchain Capital. “Polkadot’s ability to integrate public and private chains into the same consensus network has the potential to create new transactive layers, linking many blockchains together and driving much needed interoperability.”
“We wanted to democratize access and provide enhanced liquidity to the venture capital asset class, and we believe we succeeded,” summarized Pierce. “We saw incredible institutional demand, which we ended up carving back to make room for the cryptocommunity. Raising $10 million in less than a day is a real testament to this new emerging digital capital market.”
Earlier this month Crypto Insider covered the iExec (I Execute) project, a next-generation Ethereum-based distributed cloud computing platform, and its plan to launch a crowdsale to fund its “distributed supercomputing on demand” system, which will use the Ethereum blockchain to organize a global P2P market, where everyone can rent computing resources and applications – a sustainable ecosystem for open grid computing, with paying clients and paid providers.
The iExec crowdsale for RLC tokens, the native currency of the iExec distributed grid computing network, started on April 19 and ended… on April 19, after raising its target funding of 10,000 bitcoin in less then three hours, breaking the previous record of Blockchain Capital. Yes, that’s right: more than $12 million in less than three hours.
Of course, behind the final three hours rush there has been a long preparation work. Watch, for example, this video taken at the iExec booth at the Supercomputing 2016 event in Salt Lake City, Utah, in November.
Our previous story included an interview with iExec co-founder Gilles Fedak, who provided a thorough explanation of the project history and roadmap. We asked Fedak, who of course is totally swamped by the fast ICO aftermath, for comments.
“On April 19, 2017, iExec raised $ 12m making it the fifth largest ICO of all time,” Fedak told Crypto Insider. “We are immensely proud of the trust the community has shown us and aware of the challenges ahead. Making the Internet decentralized again is the biggest adventure of the next decade, and we have just successfully taken the first step.”
Let’s not forget Ethereum-based blockchain banking app Humaniq, offering financial inclusion solutions for the unbanked, which launched its public crowdsale earlier this month and raised more than $2 million in its first day. The Humaniq crowdsale, which has raised almost $4 million, is about to end.
It’s becoming evident that the ICO funding model is fast becoming a valid alternative to traditional VC models. So far, blockchain software companies have been especially successful in getting funded with crypto token sales, but the model seems exportable to other sectors with appropriate adaptations, mostly related to legal aspects.
Picture from Creative Commons Images.