Initial coin offerings have raised $1.2 billion and now surpass early stage VC funding

Initial coin offerings have raised $1.2 billion and now surpass early stage VC funding

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The amount of money raised by start-ups via so-called initial coin offerings (ICOs) has surpassed early stage venture capital (VC) funding for internet companies. ICOs are a way for start-ups to raise money by selling investors tokens in exchange for equity, similar to an initial public offering (IPO). Getty Images The amount of money raised by cryptocurrency and blockchain start-ups via so-called initial coin offerings (ICOs) has surpassed early stage venture capital (VC) funding for internet companies for the past two months. ICOs are a way for start-ups to raise money from users, similar to crowdfunding, by allowing them to buy a stake. In return, the user will receive a token or digital currency, which are equivalent to shares in the firm. ICOs are popular among cryptocurrency and blockchain start-ups and have exploded in the past few months. The total amount of money raised via ICOs in April was just under $100 million, but by May this had more than doubled to almost $250 million, according to Coinschedule, a website that tracks such data. In June, ICO funding had hit over $550 million and it was the first month ever that it surpassed angel and seed VC funding. This was …