Starta ICO F.A.Q. Part 2
11. How do I participate in the ICO?
The ICO will last for 30 days, during which time potential investors will be able to submit an application for any amount of Starta tokens via their personal accounts at StartaICO.com. They will then receive an address to which to transfer funds from their cryptocurrency wallet.
After the ICO ends, the collected funds will be made available to Cross Coin. Investors will receive Starta tokens, which will be issued on the Waves blockchain platform within two days of the end of the ICO. The number of tokens will be based on the total collected funds and the token price of $1.
12. How much funding do you need to consider the ICO a success?
To purchase 33% of the Starta Accelerator portfolio, we need to collect $1.5 million. If a smaller amount is collected, a proportionally smaller share in the portfolio will be purchased. If demand is higher, we will be able to sell up to $5 million of tokens, and any funds over $1.5 million will be invested in the next tranche of startups participating in the Accelerator.
13. Can the additional Starta tokens be bought after the ICO?
Cross Coin issues the Starta tokens which will be distributed only during the ICO. After completion the ICO, the issued tokens will be available on the secondary market; they will be freely transferred and traded on exchanges.
14. What is a mechanism for generating income by the ICO participants?
Two main scenarios are available. The first one is to sell your token on the secondary market, on any exchange, when it will grow in price. And the second one is to sell it to Cross Coin that will purchase out the tokens at a market price every time when an exit of one of the 21 startups of the investment pool takes place. Cross Coin is obliged to spend the net profit, which it will receive upon the exit of the startups, to purchase out the Starta tokens.
The mechanism for re-purchasing the tokens creates a transparent model for the profit distribution to exits and, at the same time, creates an opportunity for investors to get profit from the volatility of the market price of the tokens.
15. How will the tokens be purchased out from the market?
The tokens will be purchased out from the market via the TIDEX exchange.
16. What income will Cross Coin receive?
Cross Coin will direct 5% of the total amount of the ICO to reimbursement of its expenditures, and will receive 2.5% of the profit as a compensation for the organization of the financing startups.
17. What is a role of Cross Coin, Starta Accelerator and others companies?
A scheme of the crowd funding campaign is transparent. Cross Coin is a company registered in Singapore as a SPV for the ICO. It is a technical partner. Cross Coin will be engaged in raising investors’ funds and the subsequent distribution of profits among them by means of re-purchasing the tokens from the market at exits of the startups.
Cross Coin will immediately send the funds raised during the ICO for purchasing 33% of shares of Starta Accelerator 16/17, LLC within the option made specifically for establishing the crowd funding campaign.
Starta Accelerator 16/17, LLC owns 7% of each of the 20 startups and 2% of the 21st company in the investment pool.
In case of exit of one of the 21 startups, Starta Accelerator 16/17, LLC will transfer a proportional share of the profit after the payment of all taxes to Cross Coin in amount of 33%. The entire amount will be sent to purchase out the tokens at a market price. The token price is constantly growing, and investors take part in the distribution of the venture capital.
18. In what time limits can you expect an exit to receive an income?
Previously, an average age of a new technologic company, which is absorbed by a major strategist with a 10–20-fold valuation of invested capital, was 6–8 years. Now, the terms decrease, and the average age is 5 years. Two of our companies from the investment pool have already received offers for exit, but rejected them — i.e., the period can be 2–3 years from the time the startup was established. The first exits of the pool can take place in the coming 1–2 years.
19. How to make money faster?
Investors can get an income before exits, by selling tokens on the secondary market during the period of the price growth.
20. Why can the token price grow up before exits in the secondary market?
All startups of the pool have working business models, a quality product or a service, which are popular in their country and in the US market. Some of them have already raised additional rounds of investment at a higher assessed value than the nominal portfolio valuation.
We expect high activity and volatility of the secondary token market as news about the development of 21 companies within the pool will affect their price. For example, media can get to know some information about the interest of a major player to one of the startups, and this will push the quotes of the Starta tokens to go up. Other startup can get as a partner or a customer a well-known corporation that will accelerate its business. This will again support the Starta quotes.
In addition, the step-by-step repurchase of the tokens will reduce their volume in the market, and as a result, their value will go up as well.
This is an interesting speculative story. And it won’t be boring.
21. Who may be interested in investing in Starta Accelerator startups?
Everyone who wants to participate in venture investment may be interested in it. The startup can be especially interesting for traders — as thanks to high volatility and venture investors, even with small funds they get access to a diversified portfolio and holders of crypto assets, to diversify assets by investing in the fiduciary sector of economy, ordinary investors, thanks to the liquidity of the secondary market.
More Q&A: https://startaico.com/faq
