As ICOs approach $4 billlion in total capital raised for 2017, regulators are beginning to flex their muscles. Leading crowd-fund platform Indiegogo thinks it can help both investors and blockchain start-ups navigate the complexities of both existing and potentially upcoming legislation by offering selected ICO services on its platform.
Fund-raising companies will be shepherded through the offering process, ensuring that they fall on the right side of regulation. Investors will also benefit as Indiegogo will vet all ICOs on its platform.
Indiegogo founder Slava Rubin told the New York Times:
“We want to bring a brand of trust to the entire industry, which we think will bring ICOs to the mainstream.”
Following recent guidance from the SEC, tokens will be registered as securities in most cases. Such a move brings ICOs under the 2012 JOBS Act which limits the amount of investment a company can raise from small investors to $1 million, with the amount from any one individual small investor capped at $10,000.
Though ICOs are to be listed on Indiegogo’s main site, investors will be redirected to First Democracy VC, a crowdfunding platform dating from 2009 which was formed on the back of a partnership between Indiegogo and MicroVentures. The portal itself was set up last year for equity fundraising and is registered with the SEC.
Interested companies should note that Indiegogo is currently taking applications for ICOs. The first ICO to take advantage of the platform’s new services will the Fan Controlled Football League, recently reviewed by ICO Examiner here.