CEO of Large Fintech Company Thinks ICOs Are The Future
Many regulatory bodies around the world have been scrutinizing the new way that many are choosing to fundraise. Companies have been using new technology known as blockchain to raise millions in capital by issuing virtual tokens that investors pay currency for.
One Japanese billionaire has suggested that this could be the future of fundraising. The use of initial coin offerings or ICOs he stated may become one of the “greatest major methods” for new start-ups to get capital to begin working.
The investor, Taizo Son has started many companies and currently serves as CEO of Mistletoe, which is a venture capital firm that works as an accelerator as well as an incubator. Taizo Son is notably the younger brother of the founder of SoftBank as well as being Japan’s richest man, Masayoshi Son.
Son stated in regard to ICOs that they are “very good because they democratize venture financing for not only professionals like venture capitalists, but also individuals can participate in exciting projects from start-ups to support.”
This way of fundraising has helped to bring attention to the currency which has also brought along with it, an increased want for regulation.
ICOs work in a very straightforward manor. Companies create digital tokens that can be used to pay for goods and services on a platform that they also own, or the coins can be held onto for investment purposes. The companies give out papers that describe their platform, or how their product works, and then people can buy the tokens with currency that is more widely accepted, such as bitcoin or ether.
This year alone, start-ups have raised a staggering amount of over one billion dollars, and it does not look like it is slowing down anytime soon. The hopes are high that this new method of raising money can continue as time passes.