China's crypto start-up exiles like InvestDigital target Australia for ICOs

It was a futuristic deal. As the traditional capital markets took a breather in the days after Christmas, InvestDigital, a Chinese-based start-up building a funds management platform for crypto assets, raised $US23 million ($28.4 million) worth of the cryptocurrency Ether in an initial coin offering (ICO).

It was also a landmark deal for the Australian market. After China last year put a halt to ICOs, the new form of fundraising allowing funds to be raised anonymously over the internet by issuing digital tokens, InvestDigital looked around for a country in which to base its offer – and chose Australia.

Fintech lawyers and venture capitalists say this modern deal shows that Australia is well-placed to attract quality blockchain start-ups from the region.

Sapien Ventures, a specialist fintech VC fund based in Sydney, was one of the investors in the InvestDigital coins, alongside InBlockchain, Bixin and Queschain Capital. Sapien’s executive chairman, Victor Jiang, says InvestDigital was attracted to Australia’s regulatory clarity about conducting a legal ICO, after the Australian Securities and Investments Commission issued guidance on ICOs last September.

ICOs vary in nature and can raise funds for a variety of projects, including the development of new cryptocurrencies or blockchain-related services. InvestDigital is building a platform to meet the growing demand for cryptocurrency assets from professional investors.

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Source: China’s crypto start-up exiles like InvestDigital target Australia for ICOs | afr.com