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Kickstarter ICO? Don't Count On It Says Crowdfunding Leader

The company most widely associated with crowdfunding, Brooklyn-based Kickstarter, has no plans to get into the initial coin offering (ICO) business.

Coming in response to the news yesterday that competitor Indiegogo would facilitate ICOs on its platform, supporting entrepreneurial efforts in this new area of fundraising, a Kickstarter spokesperson told CoinDesk that the firm isn’t looking to follow this lead.

“The answer is 100 percent a very firm no,” a company spokesperson said.

Since launching in 2009, Kickstarter has been used to successfully distribute $3.04 billion to creative projects, according to its self-reported statistics. It first crossed the billion-dollar mark in 2014. Total ICO funding so far is at $3.8 billion, according to CoinDesk’s ICO tracker.

Kickstarter offered few details as to the reasoning for the decision, ultimately directing CoinDesk to its charter, which has five planks.

The first reads, “Kickstarter’s mission is to help bring creative projects to life” and the fourth says, “Kickstarter is committed to the arts.” In 2015, the company insulated itself from pressure to make profits its sole priority by reincorporating as a public benefit corporation (PBC).

PBCs are a relatively new legal entity that protects companies that want to pursue a social mission as well as fulfilling their fiduciary responsibility to shareholders. We previously reported on Blockstack, which also reincorporated as a PBC.

In this way, shareholders in Kickstarter earn an income stream rather than hoping for a giant return on a big exit down the road. (The company has long committed to remaining private, and one of its three co-founders has compared a share in the company to owning the rights to a popular song.)

But despite any similarities, the company said this unique structure protects it from the temptation to leverage its brand for returns in the frothy ICO market.

“Not something we looked into or will look into,” the spokesperson said.

Kickstarter website photo via Shutterstock.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Hackspace Capital Brings Blockchain to Crowdfunding Industry

In a land of ICOs that have no tangible product and only a white paper to show, raising millions in investments, a real company that has funded real projects in the past creating real value, is a welcome change.

Hackspace Capital is venture capital fund that aims to use the power of Blockchain technology to disrupt the crowdfunding industry with its leaders like Indiegogo, Kickstarter, and GoFundMe.

It is a capital fund that explores promising start-ups with the sole focus of providing them with complete support throughout the project’s development life cycle.

They help in various tasks ranging from the organization of administrative processes, providing legal assistance, business consulting, marketing via its partner companies, R&D, scientific research, engineering development and preparations for mass production.

What projects have they funded in the past?

With a goal of establishing and further developing international engineering ecosystem, they have an impressive portfolio of projects ranging from a sleep capsule to innovative energy generator.

One of the first startups that have been nurtured by the Hackspace Capital – HandEnergy, raised more than $120,000 on various crowdfunding platforms, receiving more than 10 mln views on its explainer videos and have been featured by media giants like The Telegraph, BBC, Mashable, etc.

How do they source their start-ups?

The start-up sector is flooded with projects that have little to no real world application and often solving problems that don’t exist. In such a market, it can be difficult to find that one gem that not only solves a real world problem but is also almost deployment ready. Here is where Hackspace Capital’s partnership with EnCata comes in.

Founded in 2016, employing more than 200 engineers, they are pioneers when it comes to steering a startup project from just a good idea to a mass deployment ready, complete product.

With branches in eight countries already and two coming within a few months, EnCata works under the philosophy of LEAN and Toyota Production System (TPS).

Hackspace Capital has a final test before they decide to invest in any potential products, that is, a startup needs to bring to market the first mass produced a batch of their product as well as raise a capital above $500,000 through seed funding.

It is at this point Hackspace Capital carries out thorough due diligence on the product and the team behind it before finally signing them onboard.

Another condition for the potential start-ups looking for Hackspace Capital’s investment is that they should have worked with EnCata for up to six months. This helps the EnCata, as well as the Hackspace team, evaluate the prospect of the team as well as their determination to successfully launch the product.

Rigorous research on profitability and viability of products

In traditional Kickstarter campaigns, the uncertainty of the final product being delivered is very high, partly because most of the minds behind the product often lose interest or lack the proper guidance throughout the product lifecycle.

You are assured that the Hackspace Capital tokens (HAC) are only exchanged if the product is introduced through the fund’s platform after rigorous research on the profitability and viability of the product.

HAC token holders will also receive an advantage of receiving priority access in the alpha-beta phases of the product development.

Investors in the tokens will also enjoy a right to exchange their tokens at the Hackspace platform for a 20 percent discount to the market rate for goods and services delivered by the Hackspace network of companies three months before the official market entry.

HAC token holders are also free to exchange their tokens for other cryptocurrencies or fiat money on other exchanges or sell them on the fund’s platform. The price of HAC token is not set and will be decided at the completion of each session.

HAC token sale

Sept. 19 at 21 (Singapore Time) will mark the beginning of the first session of HAC token sale.

On this day, 51 percent of all tokens will be available for purchase to the public, under the symbol HAC.

There will be 12 sale sessions in total; the individual session will last for 24 hours and will be performed once every month during a year. The total amount of token supply is one bln.

51 percent of all tokens are publicly available for purchase, while 39 percent is allocated to the fund’s already existing as well as future projects on the horizon.

Five percent of the tokens are reserved for advisors, consultants, marketing needs of the project as well as offering bounties. Lastly, to maintain long-term interests, five percent of tokens will be owned by Hackspace Capital Fund’s founders and employees.

You can visit https://hackspace.capital/ for more details on this upcoming ICO.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.