Morning Report: Kik’s up around $100 million from its ICO, nearly doubling its fundraising to date. Will other late-stage startups join in?
Concerns regarding overly-exuberant froth in the ICO market are often predicated on the nascency of projects attracting huge sums. Many projects picking up millions of dollars in liquid cryptos are little more than a white paper and a dream.
Kik’s recent ICO is counter-trend to some degree. The messaging startup’s nearly $100 million token sale follows the millions Kik has already raised from traditional VC sources.
Here’s the rundown:
This makes the Kik ICO less terrifying than, say, the Bancor or Filecoin ICOs—both of which featured more money and less company. Kik was able to convince a number of traditional investors along the way to its ICO that it had a shot at something big; that backing makes its ICO feel less risky.
Kik has also shown that an ICO doesn’t have to act as a replacement for early-stage capital. Instead, an ICO can find a home in between first checks and a public offering.
And with that, early-stage investors may find relief, but at the expense of an entirely different cohort of investors.
From The Crunchbase Daily:
Twitter testing 280 character limit
- So much for extreme brevity. Twitter is testing doubling the character length of tweets to 280 from the current limit of 140 for most languages. The company explained that the move is a response to data showing users have trouble expressing their ideas in 140 characters.
Google buys Bitium
- Google announced that it has acquired Bitium, a Santa Monica, Calif.-based provider of cloud software for identity and access management, for an undisclosed sum. Five-year-old Bitium had previously raised about $15 million in venture funding.
CallRail raises $75M
- CallRail, an Atlanta-based call tracking and analytics platform, raised $75 million in a growth funding round backed by Sageview Capital and Leaders Fund.
The joy of antidilution
- In the third installment of our series on startup funding terms, Crunchbase News delves into antidilution provisions, with an eye to how founders and early investors see ownership stakes change in the event of a down round.
iStockPhoto / traffic_analyzer