Cryptocurrency startup CoinList raises $9.2 million in funding to expand services for investors and vetted blockchain companies
Initial Coin Offering (ICO) is leveling the playing field and making it easier for startups to raise funding for their projects in the form of crowdsale. The crowdsales give startup founders access to funding from the crowd, and token buyers, in turn, get something similar IPO for public company. However, ICOs come with some challenges. There are some fraudulent and scam ICOs out there. Some startups are scamming investors with shady ICOs. The question is, how do you avoid ICO scams? One startup, CoinList, is solving this problem by building a platform to vet ICO and blockchain companies. CoinList is a platform for the best digital asset companies to manage their token sales and is the place for investors to discover high-quality projects. Its technology platform connects accredited investors with deeply-vetted blockchain projects.
CoinList announced today it has closed $9.2 million in its initial fundraising round. Among its investors is a group of the industry’s most notable cryptocurrency funds: Polychain Capital, Digital Currency Group, FBG Capital, Libertus Capital, Blockchain Capital, CoinFund and Electric Capital. The $9.2 million total includes the funds CoinList previously raised from venture capital firm Accomplice and Protocol Labs, a research, development and deployment lab for network protocols.
“CoinLaunch could be a game changer in the ICO space. As an easily accessible platform for the generation and management of ICOs, it can help enable a broader adoption of token-based products via creative and compliant funding,” says William Mougayar, a blockchain thought leader, author, investor and CoinLaunch advisor.
The fundraising round caps a seven-month stretch in which CoinList processed more than $400 million in cryptocurrency investments through its infrastructure, with thousands of accredited investors on the platform. CoinList supported one of the largest initial coin offerings (ICOs) of 2017, for Filecoin, which raised $205 million. It has also facilitated the ICOs of other marquee companies like Blockstack and PROPS.
“This successful fundraising round reflects the growing need that promising blockchain companies have for superior token sale compliance and execution,” CoinList co-founder and CEO Andy Bromberg said. “Now more than ever, companies raising money through an ICO need a platform partner that knows the intricacies of execution and regulation. CoinList provides even more integrity to the startups that have already distinguished themselves, and comfort to the accredited investors that want to commit to blockchain technology.”
CoinList’s infrastructure handles some of the most technically difficult and time-consuming components of a token sale, freeing business leaders to focus on the potential of their business models and the technology they bring to bear. One of the distinguishing hallmarks of CoinList is its culture of compliance, whereby compliance with regulations in both spirit and letter is paramount.
CoinList offers its ComplyAPI services to allow companies to seamlessly conduct Anti-Money Laundering-Know Your Customer (AML-KYC) checks on potential investors, as well as to verify the accreditation status of investors pursuant to US securities laws.
The new funding will go toward growing CoinList’s compliance, operations, engineering, product, and sales teams; supporting existing product offerings; and launching new product lines over the coming months.
“As we continue to see outsize interest in cryptocurrency and blockchain technologies, CoinList has emerged as a leader that has uniquely developed credibility with the three most important stakeholder groups – entrepreneurs, investors and regulators,” said Barry Silbert, founder and CEO of Digital Currency Group. “In CoinList, we’ve invested in the right team with the right technology and brain trust at the right time.”
“We’ve been very impressed with the technical solutions built by CoinList to handle regulatory requirements for token-enabled networks that wish to engage investors in a compliant manner,” said Ryan Zurrer, Venture Partner at Polychain Capital. “We see tremendous synergies across our portfolio, and we’re optimistic that many of our portfolio projects will tap CoinList for fundraising activities.”