Next month, a venture capital firm called Blockchain Capital plans to do something that could change the way companies get funded—and perhaps even the way they operate. Instead of an Initial Public Offering, in which a company sells stock via a regulated exchange like Nasdaq, the San Francisco-based VC firm is making an Initial Coin Offering, selling its own digital token as a way of raising money for its latest venture fund. Anyone who buys a token will be buying into the fund.
Yes, they call it an ICO, and over the last 14 months, more than 60 startups, open source projects, and ragtag online communities used this method to raise over $250 million for their own business efforts.
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