1. What is the purpose of the joint crowdfunding campaign between Cross Coin and Starta Accelerator?
The principle purpose of the crowdfund is to raise money to refinance a pool of tech startups. All the startups in the group successfully passed the Starta Accelerator programme in 2016–17. Starta Accelerator’s team helped them integrate into the business environment of the promising US market. In the future, these companies will continue developing their business, receiving additional backing from new investors and increasing their capitalisation.
The ultimate purpose of these startups is to sell the business to a strategic investor for the highest possible price. As a rule, such buyers are large companies that need a service, technology or a product developed by the startups to increase their competitiveness. In venture terminology this is called an ‘exit’. Investors sell their shares with high profits and exit the startup business.
2. Is this crowdfunding in the venture market?
It is, but unlike normal crowdfunding, a secondary token market will be active here, increasing the liquidity of the instrument. Our mission is to democratise venture investment and bridge the gap between the new blockchain and traditional financial sectors of the economy.
Starta Accelerator is an acceleration program launched by Starta Capital VC in 2015. The mission of Starta Accelerator is to expand the capabilities of technology companies in Eastern Europe and bring them to the US market. The programme is designed for startup founders in Eastern Europe who want to adapt to the cultural and business environment of the USA, enabling them to compete and ensure product conformity with the market, to advance and to become a part of the American ecosystem of startups and investing.
3. On what site is the crowdfunding campaign being carried out?
The crowdfunding campaign is being carried out using an ICO (Initial Coin Offering). Cross Coin will create Starta tokens on the Waves blockchain platform. Such a solution offers convenience and transparency for all participants in the process.
4. Why do startups need an acceleration program?
The value of startups in the accelerator is enhanced by the development of technological and business competencies within the US entrepreneurial ecosystem. Starta Accelerator engages the best American professionals, who become a fully-functional part of the startup team for the duration of the programme. The programme is held in New York and lasts for 3.5 months.
5. What startups will receive investment?
$1 500 000 will be invested in 33% of “Starta Accelerator 16/17” SPV, holding a portfolio of twenty-one technology startups from Russia and other Eastern European countries, which went through Batch 2 and Batch 3 of Starta Accelerator. The companies operate within the adtech, fintech and agrotech fields. These promising companies have already passed the initial stages of their development and attracted funds from early investors. Some of them have already received offers for sale to strategic investors, but prefer to pursue independent development at this stage. A full list and description of the startups is attached in the white paper on this site. Funds above $1 500 000 will be invested in future Starta Accelerator portfolio startups with similar investment focus.
6. How do investors evaluate them?
The nominal value of each of the companies within the investment pool averages $1.9 million. However, most of them have already raised funding that reflects a higher valuation.
7. Are there any blockchain startups among them?
iCoinSoftware is developing a business model based on blockchain technology. Thanks to their work, we have established a connection with the crypto community and strongly believe in the potential of these new technologies — in particular, the future of the ICO. iCoinSoft is a platform that allows any user to launch a digital currency exchange in two weeks, and to receive revenues from trading commissions on blockchain assets (crypto currencies, shares, smart contracts, etc.).
8. What returns can these companies offer for investors?
Starta Accelerator team’s experience and expertise in the Eastern European market allows us to buy shares in startups at a lower cost than would be the case in the US market. The cost of acquisition is up to $2 million, whilst the planned valuation at exit is $10–50 million. Statistics indicate that roughly 80% of mergers and acquisitions are performed at valuations in the range of $10–50 million.
9. Will ICO participants receive such returns?
We are offering everyone the exciting opportunity to become a venture investor. Previously, this was only available to larger investors with significant available capital. We are removing this barrier.
10. What is the minimum investment and what currencies are accepted?
During the ICO, Starta tokens will be sold at $1 each. The most popular cryptocurrencies accepted are are bitcoin (BTC), Litecoin (LTC), WAVES and Ethereum (ETH) / Ethereum Classic.
More Q&A: https://startaico.com/faq