Three Japanese Venture Firms Back Upcoming ICObr>
Tech Bureau, a Tokyo-based FinTech and cryptocurrency solutions company, will have its upcoming initial coin offering (ICO) backed by three big Japanese venture capital firms.
Nippon Technology Venture Partners, FISCO Capitals,and ABBALab Inc. have pledged to invest more than $9 million USD in the ICO for COMSA, a fundraising and cross-chaining platform that uses the NEM blockchain protocol. COMSA is a one-stop shop for ICOs, helping to set up token offerings, handling sales, and ensuring distribution. It will also list tokens on an exchange.
“The participation of not one but three VCs is testimony of their trust in the acceptance and viability in raising capital using cryptocurrencies,” said Takao Asayama, CEO of Tech Bureau Corp. “We are confident that more mainstream businesses will join the fray as they begin to take cryptocurrencies seriously as a means to broaden their investment portfolio into the nascent blockchain technology powered businesses.”
Starting with COMSA as the first ICO, Tech Bureau, Corp. will launch the CMS token sale on October 2 and run it through Nov. 6.
The cryptocurrency raised from the token sale will fund development of the COMSA system. It will also be used to accelerate the growth of its existing aligned businesses, the crypto exchange Zaif, and the private blockchain product, mijin.
CMS holders who buy CMS from COMSA’s token sale will get a premium bonus of five percent on every CMS they use to participate future ICO campaigns on the COMSA platform.
“The COMSA project is a timely project in that it is happening at time where there is a need for a mechanism to streamline ICOs,” said Lon Wong, President of the NEM.io Foundation. “With the development of the COMSA platform, we are now creating a whole new paradigm where capital can be raised with VC participation. What we hope to see in the future is how Security Exchange Commissions of the world will learn from this initiative, recognize it, and allow securities to be listed using cryptocurrencies. I believe COMSA has what it takes to lead, set the precedence, and make this accepted as a way forward for publicly listed companies in the near future.”
Tech Bureau CEO Takao Asayama talked with Block Tribune about the venture.
BLOCK TRIBUNE: How does the recent US SEC guidance affect this?
TAKAO ASAYAMA: It affects us in a good way. The SEC announcement made a clear distinction between tokens, which ones are considered as securities or not. We are contemplating taking ICO projects only with non-security tokens.
BLOCK TRIBUNE: Aren’t the VCs disintermediating themselves by backing this?
TAKAO ASAYAMA: I don’t think so. Existing infrastructure and processes for venture capital are time consuming. Unlike equity, tokens can be easily cut loose in the market. It spreads the potential risk as new promising ICO projects emerge. At the same time, a certain set of skills is mandatory in order to evaluate ICO projects. New experience and skills acquired will be powerful advantages for existing venture capital. Just like blockchain technology, it won’t disrupt or disintermediate banks or venture capitals for now. Those who utilize this new form of technology will disrupt competitors.
BLOCK TRIBUNE: What criteria does a company have to meet to set up an ICO on the COMSA platform?
TAKAO ASAYAMA: Our biggest criteria is targeting existing, successful businesses instead of non existent ‘Dream Dapp Vaporware.’ We only accept companies with a certain volume of business. That is why our first two clients are publicly listed companies, and the largest crowdfunding service in Japan. Because just selling tokens to raise money won’t bring any value to their tokens, we implement proven blockchain technology to tokenize their existing economies.
BLOCK TRIBUNE: Walk me thru the process of getting this in action.
TAKAO ASAYAMA: First we consult clients to see how we can implement token / blockchain technology for their businesses. Then we help them design token functions. Once those drafts are complete, we work with them to create a business plan / white paper. Our strength is that we can even provide a private blockchain technology, mijin, to power their internal ledgers. That will be a conduit for their businesses to the token economy. Once the summary is ready, we plan a token sale, including the amount to raise, terms, and more. When we are finished with the plan, their token sale dashboard is ready to go.
BLOCK TRIBUNE: Could you have done this without NEM support?
TAKAO ASAYAMA: I think NEM support was crucial to this whole plan. They are good because they always observe the whole blockchain ecosystem, not only NEM. They helped me with the design of COMSA’s core services, but it is interesting that our platform adopts both ethereum and bitcoin. They agree this new set of tools will contribute to the growth of not only NEM but the whole token economy. NEM’s support helped me to get people from the ethereum and bitcoin communities to join the COMSA ICO committee to back my idea.