Coin Offering vs Venture Capital Funding

ICOs are happening all over the world, every single day. It seems to be a superior funding mechanism than traditional VC funding. Perhaps even more significant, is that it’s an appealing fundraising mechanism for digital currency companies, but why?
2013, Cryptopay was a fledgling company actively searching for investors. Countless pitches, investment decks, hundreds of VCs approached, and zero results. Even after the launch of our wallet and exchange services, it was tough to persuade investors to invest.

We launched the bitcoin debit card in early 2015, and further established ourselves as a legitimate company. Nevertheless, VCs, at least here in Europe, were not interested. Why? There are many reasons, but we believe the main ones are:

1. VCs don’t understand what bitcoin and other digital currencies are. More importantly, they can’t grasp how these markets develop within an ever changing world

2. They don’t know the typical customer, and as a result, cannot identify the average customer’s inconveniences when it comes to dealing with digital currencies

3. Regulators from all over the world were silent, and didn’t produce any kind of feasible regulatory framework

Of course, there has been some progress in the industry since then, but most of it has happened in the US. It comes as no surprise, that the companies with VC funding are from the US. For the companies outside of the US, it’s been substantially more difficult. Considering all these factors, many bitcoin startups were unable to ship great products, and as Cryptopay were focused on less capital intensive, but more immediate cash flow.
Considering the competitive landscape and current market trends, we are seizing the opportunity and announcing the ICO of Cryptopay’s token — the CPAY token.