Starta Accelerator, an early-stage investor and business incubator, is holding a crowdsale to secure funding to help start-up tech companies expand into the US. The aim of the project is both to help undervalued companies grow rapidly by gaining a foothold in a lucrative new market, and to democratise VC investment using blockchain technology. Retail investors will be presented with opportunities that would previously have been open only to experts and specialist venture funds.
The mission of Starta Accelerator is to empower Eastern European frontier technology companies through exposing them to the U.S. market. The program is customized for Eastern European founders aiming to adapt to the cultural and business environment in the US, complete and define global product/market fit, get traction and become part of local start-up and investing ecosystem in the U.S.
Association with a tech incubator allows Starta to invest in projects personally known to the team, who work closely with the start-up’s founders on a daily basis. Starta takes a Select – Accelerate – Invest model to pick the most promising companies and nurture them through to success. Acceleration includes hiring top US professionals to help founders integrate with the US business environment over the course of the three-and-a-half month programme in New York. The Eastern European focus and acceleration strategy allows Starta to invest at the $2 million valuation range and exit in the $10-50 million range – where most VC money enters.
The company decided that the crowdsale asset will be launched on the Waves platform due to its token operations, user experience and built-in decentralised exchange. Blockchain investment will be handled in partnership with a Singapore-based company, Cross Coin, which was founded specifically for the purpose. Cross Coin has an option for 33% of Starta Accelerator 16/17, holding a portfolio of 21 post-product stage tech companies, and will share all revenues with investors. Profit will be delivered to investors via a system of token buyback.
Starta ICO’s crowdsale will begin on 15th June and will last for 30 days. Cross Coin company needs $1.5 million to close the deal with Starta Accelerator 16/17, but aims to raise up to $5 million to have an opportunity to invest in future Starta Accelerator portfolio startups.