Accelerator programs improving ICOs: How this company helps them co-exist

As digital currency took off last year, so did the investments for Initial Coin Offerings (ICOs). According to Forbes, there were more than $5 billion investments in ICOs in 2017. As the cryptocurrency industry is expected to make significant strides this year, expect more investments poured into ICOs in 2018.

The ICO hype train is real because it gives startups and sectors a convenient platform and a viable alternative to venture capital funding. With this, doubts linger if ICOs will soon replace incubators and accelerators; experts agree it won’t.

Accelerators will always have its place in the startup industry. Since the inception of Y Combinator in the U.S. in 2005, the growth and popularity of accelerators have never waned. From 2008 to 2014, accelerators in the country managed to post 50 percent annual average growth. India has even caught the accelerator bug. In 2016, there were 40 accelerator programs established in the country.

One thing that critics often say is that accelerators often focus on tech startups. But that has not always been the case. Also, more than the funding, accelerators offer other services such as education and mentorship for a limited time.

Digital Arts Media Network, Inc. (OTCMKTS:DATI) is the first to use the Public Accelerator-Incubator (PAI) model in the world. DATI has proven that accelerators and ICOs can co-exist and thrive in the startup community.

Last year, it launched accelerator programs for startups connected to blockchain and cryptocurrency. Chairman and CEO Ajene Watson wants to leverage the platform for startups on their accelerator programs.

“The speed at which our first Angels+ startup was able to raise money privately (pre-ICO) vs. the time it could have taken following the traditional fundraising model, was incredibly fast. We will replicate this — with improvements — to assist our accelerated startups with their overall development objectives,” he added.

ICOs, being still largely unregulated, have been banned in some countries, most notably in South Korea and China. To avoid incidents of fraud, regulators are calling for companies to exercise due diligence and avoid violating securities laws. DATI recognizes this and moved to align their business model with truCrowd as a means to force their client-companies to remain compliant with securities laws.

By acquiring 39.89 percent stake in truCrowd, DATI now has access to over 6,000 registered users of the crowdfunding portal. This also enables DATI’s clients to have an easier time reaching out to investors to raise capital via truCrowd, which is registered in the Securities and Exchange Commission and is a member of FINRA (Financial Industry Regulatory Authority). This would help ease fears of investors and startup founders since the collaboration is “legit,” receives regulatory oversight and encourages proper adherence to securities laws; especially for blockchain-related projects.

Aside from DATI, there is also the company called Waves Lab. More than the $300,000 initial funding that chosen startups could enjoy, they are also set to receive legal advice, tech resources, and marketing.

The term crypto accelerator is not something new as evident with different blockchain companies which focus on this sector. These companies are Adel, BitHub.Africa, Block Chain Space, Boost VC, Coin Apex, Outlier Ventures and Satoshi Studios, to name a few.