Augmate expanded its initial coin offering onto Crowdfunder, reportedly the first ICO on the crowdfunding site, and a milestone for both companies. The offering, structured as a security token in a nod to recent Securities and Exchange Commission guidance on ICOs, gives investors a chance to own a piece of a unique IoT device management platform powered by distributed ledger technology. At this writing, Augmate has already raised $12M toward its $32M goal.
“We’re thrilled and humbled to be the first ICO on Crowdfunder, as we continue to build a system that will help make smart products more manageable and secure,” shared Augmate CEO and Founder Pete Wassell. “The number of IoT devices in homes is set to skyrocket in the coming years, as is the use of blockchain technology across many industries. Growing the company through an ICO and doing it as a security token is true to our business, and to our current and future investors.”
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The decision to offer a security token rather than a utility token ensures Augmate attracts investors that believe in the company and its future. The SEC Chairman recently said that characterizing a cryptocurrency as a utility token – which gives investors access to a company’s platform but can also be sold very quickly – doesn’t exempt it from being regulated as an investment security. Augmate heeded that guidance. For Crowdfunder and its 15,000 accredited investors, following investment guidelines and regulations was a key element to selecting Augmate as its first ICO.
“After consulting with regulatory bodies and the most knowledgeable law firms in the country, we’ve put forth a way to run an ICO in a fully compliant manner,” explained Crowdfunder CEO Jean-Michel Arnout. “ICOs represent a new tool for companies to raise money, grow and create jobs. Augmate has a strong reputation in the marketplace, and investor base that’s among the best in the business. We’re happy to open up this exciting new opportunity to our network of accredited investors.”
Augmate will use the ICO funding to accelerate the use of blockchain and distributed ledger technology within its platform, for the benefit of consumers. The company has already begun developing the first aggregated device management platform for IoT incorporating decentralized technology. Extending its ICO to Crowdfunder will only accelerate that process. If the minimum is not met within 65 days, refunds will be issued via the smart-contract.
[clickToTweet tweet=”.@Crowdfunder: ‘After consulting with regulatory bodies and the most knowledgeable law firms in the country, we’ve put forth a way to run an #ICO in a fully compliant manner.’ @augmate” quote=”.@Crowdfunder: ‘After consulting with regulatory bodies and the most knowledgeable law firms in the country, we’ve put forth a way to run an #ICO in a fully compliant manner.’ @augmate”]
Other live Crowdfunder campaigns include the stabilized Camera REVL (backed by Y Combinator) which has raised over $9.6M of its $3M goal and Acre Designs Zero Energy Smarthomes which is overfunding at $2M of its $1M goal.
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