Tag Archives: ICO

What’s Next? Blockchain Feasibility Study Services

The following is courtesy of a blog post published at Prospectus.com, the global consulting firm specializing in investor offering document preparation, feasibility studies and consultative guidance to tech entrepreneurs and others seeking to raise capital. As discovered by MarketsMuse fintech curators, the firm has opened a blockchain feasibility study practice area for crypto cool kids..,

Blockchain Feasibility Study For Cool Kids and Grey-beards Like Me. I might be a ‘grey-beard’ straight from the cast of Mad Men, but I’ve been to plenty of tech rodeos in my time and I’ve come up with an idea that is so brilliant, it has already been nominated for the LinkedIn 2018 Global What’s Next? Award for Best Fintech, Martech, Medtech, Insuretech or BlockTech Idea, Ever!” Very smart folks within the bitcoin and blockchain ecosystem who have heard about it have said, “Wow! I wish I thought of that! You could make Billions from it!” And of course, my great technology idea not only solves a problem by making it easier to do a whole bunch of things, it has a blockchain back-drop that leverages distributed ledger technology and naturally, there is a utility token component that comports with the established crypto community’s definition of ‘store-of-value” and it can be expressed in the form of a new bitcoin, or an Ethereum energized alt currency and it can nest on Ripple. Do you know how many ICOs are raising tens of millions and in some cases, hundreds of millions of dollars?! This is a no brainer and we’ll be listed on all of the bitcoin exchanges in a few months.

My idea is going to change the way discrete networks connect, how groups of people and nodes interact within specific industry workplace settings, and it will change the way in which people live.

You’re either going to hear the above pitch or you’re thinking of making it. But without a blockchain feasibility study in hand, the conversation will be short.

If you didn’t get the memo titled “ICO Traded Ahead,” the nascent stage, yet multi-billion-dollar ICO marketplace is being viewed as fast track path for pre-revenue startups to raise capital without having the burden of adhering to accredited investor guidelines for private placement offerings and aims to accomplish the same outcome as a traditional Initial Public Offering.  It is has also become a virtual pump and dump arcade.

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Oren Raphael, Tech Entrepreneur

According to Oren Raphael, the 30-something former international banker turned-tech entrepreneur, “the ICO marketplace has already become a virtual #shithole of penny-stock populated, half-baked ideas riding the wave of euphoria courtesy of the birth of blockchain.” Raphael (click image to right for his linkedin profile) is the founder and chief technology architect of RAADAAR, an IP rich, location proximity software firm that has developed a “real world” mobile device app that provides the crucial last few feet of connectivity between consumers and a merchant’s cash register and is already being rolled out by independent gas station / convenience store operators in Southern California.

The Series A round for RAADAAR was completed one year ago, and after meeting the original deliverable milestones well ahead of schedule, Raphael set out to do a Series B round with proceeds earmarked towards product launch. When reaching out to the investor offering document firm Prospectus.com to prepare a Reg D Offering Prospectus, Evan Fisher, a senior member of Prospectus.com who has framed crypto token value propositions for several startups in the past few months had a ‘aha moment’ in the initial consultation. He recommended that Raphael should want to have a blockchain feasibility study for his existing product, not just a typical business plan that would be mapped as an exhibit to the Offering Prospectus. According to Raphael, “It was as if Fisher hit me with a lightening bolt when we were discussing the business plan I thought I wanted his people to write for me.” Two weeks later, Raphael, working with Prospectus.com team, produced a plan that has already fallen into the hands of a discrete universe of investment groups focused on blockchain opportunities, two of which have put a 10x multiple on his initial enterprise value. A classic example of what happens if you perform an objective blockchain feasibility study so as to fully curate out opportunities that lever distributed ledger technologies.

To continue reading, please visit Prospectus.com

If you’ve got a hot insider tip, a bright idea, or if you’d like to get visibility for your brand through MarketsMuse via subliminal content marketing, advertorial, blatant shout-out, spotlight article, news release etc., please reach out to our Senior Editor  or email: cmo@marketsmuse.com.

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Bitcoin Barista of the Day Award: BnkToTheFuture

When it comes to corporate monikers, MarketsMuse fintech curators are big fans of catchy names and have made it a New Year’s resolution to compile and share a weekly list of firms that earn special recognition within the burgeoning world of blockchain, bitcoin and crypto handles. And, the winner for the first week of 2018 is”BnkToTheFuture.” No, its not a futuristic bank run by Doc Brown and no, Marty McFly is not the crypto credit lending officer. Its a current generation “cool kids only investment bank” that appears to be based in Hong Kong and staffed by the now ubiquitous-to-the-industry line-up of slick looking folks from UK, HK and of course, Eastern Europe. Arguably, the management team can be considered blockchain industry pioneers given this firm was formed way back in 2011.

Our thanks for guidance to this “Global FinTech, Bitcoin and blockchain online investment platform” goes to TradersMag Senior Editor John D’Antona  who pushed this release to us, which is chock full of  mentions of ‘crypto industry celebrities’ who recently joined the firm’s advisory board. Our compliance desk loved the “About BnkToTheFuture” section of their press release; it conforms beautifully with global financial industry best practice protocols: “The platform is in line with international financial regulations and over $200m has been invested in deals listed on its platform.”  Below is an excerpt of the news story:

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Simon Dixon, CEO BankToTheFuture

BnkToTheFuture today announced its token sale advisory board, with executives from Civic, Smith + Crown, Abra, BitAngels, and more signing on to help BnkToTheFuture launch a tokenized secondary market and due diligence platform for equity tokens. BnkToTheFuture’s online investment platform already brings vetted deals to qualifying investors and has invested in many of the most valuable companies in the sector, and will now incorporate its BFT cryptocurrency token to reward due diligence, deal flow analysis and investor relations on prospective and current deals.

“Investors in today’s burgeoning ICO landscape are seeking more professionalism, accountability, and compliance, while equity investors are seeking greater liquidity and trading,” said Civic CEO and BnkToTheFuture Identity/KYC Advisor Vinny Lingham. “BnkToTheFuture provides this gap in service, and I’m excited to see this project grow through its next phase.”   The company’s press release includes: “The platform is in line with international financial regulations and over $200m has been invested in deals listed on its platform including BitFinex, BitStamp, Kraken, ShapeShift and over 100 others.”

Joining BnkToTheFuture’s advisory board alongside Lingham are Jonathan Smith, Civic Co-Founder and CTO; Bill Barhydt, CEO of Abra; Diego Gutierrez Zaldivar, CEO and Co-Founder of Rootstock (RSK), Michael Terpin, CEO of Transform Group, Founder of CoinAgenda, and Co-Founder of BitAngels; Sunny Ray, President of Unocoin; David Johnston, Chairman of Factom and Co-Founder of BitAngels; Li Huo, Director at Huobi; Adam Vaziri, Blockchain lawyer and Director at Diacol; Brian Lio, CEO at Smith + Crown; Matt Chwierut, Researcher at Smith + Crown; Tony Simonovsky, CEO of InsightCryp.to; and David Drake, Chairman at LDJ Capital. BnkToTheFuture will continue to list new advisors here.

Whether your company is a fintech startup that is planning a private placement offering, a crypto concern with a custom token offering that is seeking to raise capital from qualified or accredited investors via a Initial Coin Offering (ICO), or if you are fast growth firm setting the stage for an initial public offering (IPO), a properly prepared offering prospectus or offering memorandum is required by your investors and industry regulators that govern securities offerings. Issuers seeking affordable investor document solutions rely on experts at Prospectus.com.

“While building BnkToTheFuture’s advisory board for our upcoming token launch, we sought leaders in the blockchain industry and those who have been consistently involved advocating for Bitcoin from very early on to help guide our efforts to further develop a transparent platform compliant with regulatory requirements,” said Simon Dixon, CEO of BnkToTheFuture. “We’re confident that our advisory team of experts will be instrumental in this process.”

Already popular as an online investment platform with 45,000 qualifying investors and over $200 million invested in rounds listed on its platform including companies like Kraken, BitFinex, BitStamp, ShapeShift and others, BnkToTheFuture will incorporate blockchain technology to allow for the trading of equity tokens and will issue its own token, BFT, to support deal flow analysis, due diligence and investor relations on the platform. BFT will be available in a public token sale in February 2018.

If you’ve got a hot insider tip, a bright idea, or if you’d like to get visibility for your brand through MarketsMuse via subliminal content marketing, advertorial, blatant shout-out, spotlight article, news release etc., please reach out to our Senior Editor via cmo@marketsmuse.com.

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SEC Aims to Rein In and Reign Over Initial Coin Offerings – Duck Test 3.0

Initial Coin Offerings [Finally] Get SEC Attention; The Duck Test 3.0.

For those who believe the US SEC is slow to react when reining in and/or reigning over new-fangled investment products, the evidence indicates you are accurate. After all, recent history regarding sub-prime debt sold to unwary investors, Madoff-style investment management scams, payment-for-order schemes advanced by exchanges, and high-octane exchange-traded notes unsuitable for retail investors are just a few of the topics that made it out of the gate and far into the fields before investor advocates rang the alarm bells at the front door of the US Securities & Exchange Commission.

There have been more than 160 of these ICOs this year, which have collectively raised more than $3 billion, according to data from research firm Coindesk. Before this year, ICOs had raised a total of about $300 million going back to 2014.

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SEC Chair Jay Clayton Photo: Andrew Harrer/Bloomberg News

In defense of the bureaucrats based in Washington, their job description is arguably less a function of evaluating investor-suitable products and Wall Street selling practices as opposed to their primary role of chasing the horse after its out of the barn. After all, the folks who offer SEC staff with new investment product insight and regulatory recommendations (and tickets to concerts and sports events) are highly-paid lobbyists who represent Wall Street investment banks that have an agenda–to make fees from selling investment products and to ensure there is as little as possible regulatory oversight on their activities. Thanks for reinforcing that view, Mr. Trump!

But, in the case of the latest innovative product known as initial coin offerings, where innovators are raising money for an assortment of business models through issuance of bitcoins vs traditional shares in a company, Wall Street banks are finding themselves short of having a controlling role in the underwriting, sale and secondary market trading of these ‘instruments.’ Whilst the likes of Goldman Sachs and other fintech-friendly firms are racing to find their sweet spots in the digital ledger, blockchain and bitcoin space, suffice to say those investment banks are not happy about losing out on what would have been tens of millions of dollars in underwriting fees that could have been generated from the more than 160 private placement offerings that raised nearly $3billion since the beginning of the year, as well as potentially hundreds of millions of dollars in potential underwriting fees based on the pipeline of ICO deals in the pipeline.

So, it should come as no surprise that despite the ongoing string of announcements about new ICO issuance, the SEC has seemed to be asleep at the wheel for months insofar as issuing any regulatory edicts, leading some cynics to suggest that lobbyists from Wall Street have more recently whispered into the ears of SEC Chair Jay Clayton and compelled him to assert the power of SEC over those conducting initial coin offerings.

MarketsMuse readers are directed to coverage by Prospectus.com, “SEC Invokes Duck Test for Initial Coin Offerings-ICO Alert” via this link

If you’ve got a hot insider tip, a bright idea, or if you’d like to get visibility for your brand through MarketsMuse via subliminal content marketing, advertorial, blatant shout-out, spotlight article, news release etc., please reach out to our Senior Editor via cmo@marketsmuse.com.

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Investor Solicitation 3.0 – Start-Ups Squared Away w Investor Offering Documents

You’re an emerging fund manager, an entrepreneur vying to create a real estate development platform or you’re a fintech guru aiming to alter the current payment processing landscape with Ethereum that didn’t get the memo titled  “If you don’t have properly-pared Investor Offering Documents that comply with securities regulator regimes, you’re not likely to pass Go and collect $200, and certainly not the $2mil or even $20mil that you think you need to fund your business.”

For entrepreneurs  seeking capital, whether for a fintech initiative that envisions an “ICO”,  a real estate development project, a fund formation or any other unique, innovative or disruptive company, the investor solicitation “rules of the road” beyond initial stage “friends and family round” include a properly prepared business plan and fully ‘squared-away’ investor offering documents. Without these basic elements, capital formation campaigns will get stuck in neutral. More likely, without having the proper document file, inclusive of a offering circular, offering memorandum and/or offering prospectus that complies with securities industry regulatory regimes and local securities laws, those capital raising goals will get totally grounded.

(via Broker Dealer LLC-re-published with permission)

Private Placement Offerings Surge as Demand for Offering Memorandum Document Experts Follows Along

Whether due to improving economic conditions in the US as well as various other parts of the world, or due to technology advancements that serve as the catalyst to innovative products and services that solve legacy business challenges, the global private placement marketplace is surging. With this new era of entrepreneurship, the need for investor offering memorandum experts is likewise cascading. In Wall Street parlance, the demand for such experts is nearly “over-subscribed,” meaning the supply of capable professionals who specialize in preparing fully-compliant investor offering documents is being stretched thin. But, at least one firm within the professional services sector is addressing the investor documentation needs of forward-thinking business enterprises and they are situated neatly within the “curl of the wave”-all you need to find them is a search engine and the right key words/phrases.

Operating under the web banner OfferingMemorandum.com, the firm behind this portal is NY-based Broker Dealer LLC and with footprints in various cities across the global financial services ecosystem, they are leading the pack by making it simple and easy for broker-dealers*, captive business advisors and corporate lawyers for companies of any size and located in nearly every geographic location of the world to engage local securities law professionals and investor offering document experts who specialize in preparing preliminary offering memorandums, red herrings and final offering prospectus documents that conform to financial industry best practices and comply with local regulatory guidelines that govern investor solicitations. (*For various reasons, registered broker-dealers do not prepare the investor offering memorandum or an offering prospectus, and it is therefore incumbent on the Issuer to provide the investor offering documents.)

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Ryan Gorman

Prospectus.com

According to Ryan Gorman, a PR-IR-Corporate Communications expert who works with many startup companies, “While some capital markets  professionals will attribute the continued spike in private placement issuance to the ‘Trump Bump”,others will credit the evolution of the JOBS Act [the US legislation spearheaded by former President Obama intended to make the regulatory steps more simple for small companies in the US to raise capital], global macro gurus point to the rising economic tides in various regions of the globe. That said, nobody disputes the number of new companies and latter-stage funding initiatives for small, medium and large companies remains in an unobstructed uptrend.

Private Placement offerings are surging and direct IPOs are gathering steam. But, for those seeking to raise capital for a start-up or to fuel expansion for a fast-growing business, any entrepreneur worth his salt knows their first step is preparing a cogent business plan, then consolidating that blueprint into a short-form ‘pitch deck’ and once prospective investors have expressed interest in the investment opportunity, the enterprise seeking capital (aka “Issuer”) provides the investor with an offering memorandum or an offering prospectus. Simple as this process might sound, offering memorandum preparation is non-trivial and is typically performed by securities attorneys who specialize in investor offering documents. Also known as an “OM”, the offering memorandum is perhaps the most critical document, as it frames the terms and conditions of the investment, and when prepared within the context of best practices, the offering memorandum is the document that both Issuer and Investor can hang their hats on. Somewhere in the mix, the enterprise that seeks funding (also known as the Issuer) might engage a registered broker-dealer to serve as a placement-agent aka underwriter for the financing round, or the Issuer may already have identified investors and has determined there is no need to engage a broker-dealer.

*Registered broker-dealers generally serve as a placement agent or underwriter for a capital raise, but typically defer to the Issuer to provide them with the investor offering documents, as such it is the obligation of the Issuer or their corporate counsel to create an offering memorandum or a prospectus. In most instances the Issuer will engage their law firm to prepare these documents, and increasingly, law firms that do not have a securities law practice will outsource or sub-contract to firms that dedicated to this type of work. As the number of private placement offerings and direct IPOs via Regulation A+ continues to grow, portals such as OfferingMemorandum.com and Prospectus.com provide a unique solution.

If you’ve got a hot insider tip, a bright idea, or if you’d like to get visibility for your brand through MarketsMuse via subliminal content marketing, advertorial, blatant shout-out, spotlight article, news release etc., please reach out to our Senior Editor via cmo@marketsmuse.com.

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