Kik CEO explains why they’re doing an ICO instead of venture fundraising

20 Jun 2017

tcdisrupt ny16 5461Ted Livingston, CEO of messaging app Kik, spoke on stage at TechCrunch’s event in Shenzhen, China on Tuesday. Moderator Jon Russell asked him about why the company is doing an initial coin offering (ICO), a newly popularized method of fundraising.

Related Articles

Chat app Kik takes on Facebook with developer ecosystem built on the blockchain

Kik adds group video chat to its messaging app

Former Mozilla CEO raises $35M in under 30 seconds for his browser startup Brave

It’s”a way to raise funding” and “a way to get money into the company,” he said about the ICO. “What’s exciting about cryptocurrency is for us it’s been very hard to monetize in the western world.”

The ICO is resulting in what they’re calling “Kin,” a bitcoin-like currency. He said that the introduction of Kin payments into the community will “turn Kik into an economy” for its “millions and millions of monthly active users.”

But while many startups have been going the ICO route in recent weeks, what’s unusual about Kik is that they previously raised significant venture capital. When asked if the unicorn-valued startup had trouble raising additional funding, he demurred but claimed that the ICO is an alternative form of exit.

He believes that the ICO will provide an adequate return for the existing investors, which would take pressure off a possible acquisition or an IPO.

“We didn’t really like the idea of having to sell Kik one day,” said Livingston. As for an IPO, “I hope it’s not required,” he said.

While some people have made significant money off of bitcoin, others are skeptical that volatile cryptocurrencies are a good investment. Livingston can see it going either way.

“The way I think about ICOs is it’s very similar to the dot-com era. There was a bunch of excitement, people made a bunch of money, people lost a bunch of money but Amazon and Google came out of it.”

 

Source: TechCrunch

Last modified on Friday, 23 June 2017 12:47


Upcoming Events

No events

Contact Us

 We are "Crazy" about startups. We would love to hear from you. Use the directory below to contact us.


Letters to the Editor:info@crazyaboutstartups.com - Share your opinions, ideas or news with our editorial staff.

Feedback:feedback@crazyaboutstartups.com - Reach us with your comments, suggestions, bugs, issues or problems related to the site, content or anything in general.

Press Releases:pr@crazyaboutstartups.com - Send us your press releases about your startup. We would love to know whats happening.

Contribute: guest@crazyaboutstartups.com - Are you an expert in the field of startups? Join us to share your knowledge, experiences and views with the world.

Advertising:ads@crazyaboutstartups.com - Contact us for advertisement opportunities. Increase your products / services awareness with the startup community.

Events:events@crazyaboutstartups.com - We are also crazy about startup events. We would love to cover your events. Let us know about your events.

Experts:experts@crazyaboutstartups.com - Reach our panel of highly experienced experts with your queries regarding startups. We would love to help you.

For any other queries or just drop in a "Hi" mail us at crazy@crazyaboutstartups.com