Starta Accelerator Says $5 Million Raised in ICO

Starta Accelerator has announced that during the ICO of Cross Coin, a Singapore-based company, $5 million in cryptocurrency was raised for investment in the tech start-ups within Starta Accelerator, a Russian and US initiative. The offer was announced this past June.

Starta reported that $1.5 million was raised during the first 15 minutes of the crowdfunding campaign, and the full amount was raised in less than a day. Starta is capitalizing on the hot ICO market which is almost completely unregulated and has experienced dramatic growth in recent months.

Tokens were created using the Waves platform.

Starta added that Cross Coin has a call option for 33% of shares in SPV Starta Accelerator 16/17, a company that owns 7% of shares in each of the 20 startups and 2% of shares in the 21st startup, all participants in the Starta Accelerator programs in 2016-2017. Each of the companies within the pool are said to have a market-value appraisal of $1.9 million or more.

“Investors can place their bets on start-ups that have already passed the initial stages of their development and raised their first investments from various funds, accelerators and business angels. Startups going through Starta Accelerator’s programs are integrated into the business environment of the USA – the largest and most promising market. This is a unique characteristic of our project. Supporters of the venture gain access to a diversified portfolio of actively developing startups. I’m confident that our project with Cross Coin is a great format for the venture market, which will be developed further in the future,” said Aleksey Girin, Head of Starta Accelerator and General Partner of Starta Capital.

Starta said the breakdown of raised funds is as follows:

  • Bitcoin – 909;
  • Litecoin – 4,168;
  • Waves – 203,422;
  • Ethereum – 5,200;
  • Ethereum Classic – 5,793.

Cross Coin issued 5 million cryptographic tokens during the ICO, at a reported cost of $1 each. $1.5 million of the funds raised are said to be used to refinance the pool of 21 start-ups that participated in Starta Accelerator’s program in 2016-17, with the remaining funds used for start-ups in the next tranche of start-ups.

Starta explained that a total of 60-70 startups from Russia and Eastern Europe will be funded. All start-ups in the investment pool are selected and have passed through the Starta Accelerator acceleration program in New York. The accelerator team then helps them adapt their business to the US market.

 “ICO projects aimed at developing existing business, or financing startups that have already tested their business models and started generating revenue, is a new promising trend in the cryptocurrency space. The successful crowdsale of Starta Accelerator and Cross Coin shows that investors welcome such new opportunities, and companies have additional ways of raising funds for development using blockchain technology,” says Sasha Ivanov, founder and CEO of the Waves blockchain platform.

Kayrat Kaliyev, Head of Cross Coin, labeled the process as the “democratisation of venture investment.”

“The second focus for ​​the project is the creation of a highly liquid secondary token market. This will allow many potential investors to participate in venture financing of projects with a low entry threshold and the ability to exit at any stage of their implementation.”

 

 


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