So you think your startup is ready to go ahead with raising capital. Congratulations! The decision to raise capital is an important one. However, it involves navigating through the entrepreneurial ecosystem, and as a founder it can be difficult to determine which steps are right for you and your startup.
An Initial Coin Offering, or ICO, is a new form of fundraising that allows companies to take advantage of “cryptocurrencies” to raise large amounts of capital and fund projects. Similar to an Initial Public Offering (IPO), an ICO allows investors to purchase new forms of cryptocurrency colloquially referred to as “coins” or “tokens” from the seller business. Read on to hear how an ICO differs from an IPO, and the legality and risks of ICOs in Australia.