Developer

For early stage companies, venture capital isn’t the only name in town these days.

Startups built on blockchain technology—distributed ledgers that power cryptocurrencies like Bitcoin—are increasingly enticed by the option of hosting an “initial coin offering,” or an ICO, as insiders call it. Instead of accepting some fund’s money in exchange for equity stakes, these firms decide to issue their own digital currencies, or tokens, that anyone can buy in a crowdsale. Proceeds from the auction of these virtual shares help fund the businesses.