Uniquely positioned, experienced and resourced to facilitate token sales for technology startups that we’re also invested in as early stage equity investors.
A token sale is a form of crowdfunding, or crowd-sale, where a new set of crypto-tokens is created on a public blockchain and sold to early backers to raise capital for a technology project or startup. This capital can be used to develop products, bring products to market or enable operations to scale. Tokens give companies the unique ability to employ network effects and incentivise early users or customers to grow the network, benefitting both the user and the startup.
Newtown Partners is uniquely positioned, experienced and resourced to enable startups to raise funds via token sales. We are not merchant bankers or token sale promoters, but we do facilitate token sales for appropriate startups or technology projects that we’re also invested in as early-stage (Angel) equity investors.
Our token sale focus:
- Startups looking to utilise emerging, disruptive technology to solve big, challenging problems in a novel way.
- Startups that have a skilled technology team with experience in the industry that they want to employ the disruptive technology.
- The project would benefit from the use of behavioural economic incentives embedded in a token economy.
Token sale services that we provide to our portfolio companies:
Along with initial Angel funding, we provide:
- access to technical blockchain skills,
- expertise in designing token economies,
- experience drafting token sale white papers,
- knowledge of optimal token sale raising mechanic design,
- experience determining the issue price of tokens,
- marketing experience and support,
- connecting the token sale offer with well-known token sale backers,
- technology to allocate and issue the backers’ tokens during the crowd-sale,
- assistance with legal support for token issues,
- expert advisory and token sale backing from Vinny Lingham, Llew Claasen and the rest of the Newtown Partners team.
Our token sale experience:
Raised $33 million in June 2017 for a blockchain based decentralised identity management system based out of Palo Alto, US. Vinny Lingham made the bold decision to make Civic’s offering open and public and put a cap on the amount raised in both the pre-sale and crowd-sale. This allowed small buyers to participate and drove broad awareness. Civic retained 33% of the token allocation, 33% was sold in the token sale and 33% was allocated for distribution to incentivise ecosystem participation. The Civic token sale process has been lauded by crypto experts as the new standard in best practice for token sales.
Raised $1 million in 30 days in February 2017 to complete the development of an augmented reality video game. This was the most successful video gaming token sale ever conducted and the first token sale conducted in South Africa. Augmentors retained 30% of the token allocation and 70% was sold in the token sale.