• Dueling AIs compete in learning to walk, secretly manipulating images and more at NIPS
  • How To Easily Launch A HubSpot Site Without Setting It On Fire
  • UFO 50 is a 50-game love letter to the 8-bit era
  • AnimateKit – Animation Tools for Layers
  • Lambda School aims to cash in by upskilling untapped talent
  • All In The Name of Honesty
  • Airbnb’s director of experience design on using ‘stories’ to design
  • Online Game Cheats
  • SoftBank transfers its $5B stake in Nvidia to the Vision Fund
  • Responsive Event Scheduler for WordPress

Why Science is turning to ICOs for its incubator

There has been a wave of startups turning to initial coin offerings, known as ICOs, to raise funding through digital currency and now at least one fund is doing this, too.

Science Inc., the LA-based team co-founded by Peter Pham and Mike Jones, which has incubated startups like Dollar Shave Club, DogVacay and Wishbone, is launching a fund for blockchain startups and plans to raise the money through an ICO of up to $100 million in size.

It “seemed to make sense to us to put our money where our mouth is,” Science co-founder and general counsel, Greg Gilman, told TechCrunch. “The ICO market itself presents an interesting change in the way that investors approach the space.”

Science will be accepting payments in Bitcoin, Ethereum and U.S. dollars from accredited investors in exchange for Science blockchain tokens. The team will then use some of the proceeds to invest in startups.

In return, the Science investors will get the opportunity to make money when portfolio companies get acquired. Science will use a portion of the returns to buy back the tokens in the event of a sale.

Investors will also be allotted tokens in the event of a Science portfolio company ICO. But Gilman says he won’t be advising most startups to do ICOs until a later date. In contrast to much of the ICOs these days, Gilman says they “see ICOs as appropriate for later stage businesses only.” He thinks it will be best if the businesses gain traction beforehand, so he’s recommending that some of these startups receive equity funding first.  These offerings would result in more tokens for investors, which can be redeemed at a later date.

Recently, the SEC issued a report that says some ICOs will be treated as securities based on predetermined parameters. This concerned some in the ICO community, because part of the appeal was the lack of regulation. But Gilman says the Science team is happy to comply with the rules. “Regulation is both healthy and necessary for the ICO market to not only grow, but to grow up,” he said.

Most venture funds have a ten-year window or so in which they are expected to provide liquidity to investors. Gilman says he expects a returns timeline to be about the same as venture, despite lacking traditional LPs.


Featured Image: Bryce Durbin

Source link

The following two tabs change content below.

Sachin Iyer

I am a self‐learned digital executive, leader, strategist and trainer by profession and experience. I have rich experience as marketer, trainer, entrepreneurial evangelist and start up facilitator. I admire first generation of entrepreneurs and conducted more than 200 programs to establish startup ecosystem in Central India. I have worn many hats in my career, as a result, I have a unique ability to manage multi‐disciplinary projects and navigate complex challenges in the process. I have big ideas and I don't care who gets credit, I just like to facilitate. Drop me a line anytime, whether it's a collaboration, writing projects, skills training or just business - will love to hear from you - [email protected]

Latest posts by Sachin Iyer (see all)

  • Dueling AIs compete in learning to walk, secretly manipulating images and more at NIPS - August 8, 2017
  • How To Easily Launch A HubSpot Site Without Setting It On Fire - August 8, 2017
  • UFO 50 is a 50-game love letter to the 8-bit era - August 8, 2017

Categories: Tech News

Leave A Reply

Your email address will not be published.