Participants of Starta’s ICO To Receive Tokens From Future ICOs Run By Portfolio’s Companies
Kayrat Kaliyev — Head of Cross Coin, which will invest Starta’s ICO funds in Starta Accelerator’s portfolio — discusses this unique venture project. In particular, he specifies that the number of startups in the investment portfolio could grow as high as 60 or 70.
Additionally, it confirmed in Starta Accelerator, that if portfolio startups conduct their own ICOs, some of the new tokens will be distributed among holders of Starta’s tokens.
- Many startups are actively considering their own ICOs. Is this an ‘exit’? What will holders of Starta tokens receive?
- This is not an exit; rather, it would be a new stage of financing that will positively impact the startup business and, accordingly, the market value of Starta tokens. But this is not the only bonus. According to our partner Starta Accelerator, if startups from the portfolio issue their own tokens and distribute them among the team, shareholders and so on, then a part of the issued tokens will also be distributed to the holders of Starta tokens. The new tokens will be distributed proportionally to all participants.
- If you collect more than the $1.5 million necessary to buy a share in the portfolio of 21 startups, how will the rest of the funds be allocated?
- We see considerable interest in the project, and the funds raised could well exceed the original target of $1.5 million. The project team is ready to issue up to 5 million tokens with a price of $1 each. If the ICO reaches $5 million then we, together with the accelerator’s partners, will be able to invest in a total of 60–70 technology startups from Russia and Eastern European countries. All these startups will be selected by Starta Accelerator and the accelerator program in New York. The accelerator’s team will help them to adapt the business to the lucrative US market and to prepare for exits.
- Starta Accelerator selects promising startups with the intention of increasing investor interest in them through their programme. What is the estimated valuation of the 21 startups already available in the portfolio?
- Each of the 21 startups was valued at a minimum of $1.9 million when Cross Coin began preparing for ICO. Currently, many of the estimates are higher — the deals for the next rounds of investments for several of the portfolio startups have recently closed or are near to closing. The specially created company Starta Accelerator 16/17 owns 7% in 20 startups and 2% in the 21st one. Accordingly, the overall estimate for the portfolio in which Cross Coin will invest exceeds $4 million, on the basis of the last valuations. It should be remembered that Cross Coin will pay $1.5 million in exchange for 33% of this portfolio of $4 million.