Media Startup Civil’s Struggling CEO Propped by Backer
Civil, a ConsenSys-backed company that is interested in placing journalism on the blockchain, has raised a mere $1.34 of the necessary $8 million minimum during a token sale. The consumer token, called CVL, is needed to launch the platform’s blockchain-fueled journalism platform. About a year ago, the platform received $5 million in funding from ConsenSys, an Ethereum-focused development studio.
The platform does not intend to finalize the sale until it raises the soft cap of $8 million by October 15. It also needs a funding cap of $24 million. Recently the platform released a report wherein Civil founder Matthew Iles stated that the startup will continue attempting to earn the $8 million, even despite the slow progress thus far.
As he stated,
“The numbers will show clearly enough that we are not where we wanted to be at this point in the sale when we started out. But one thing we want to say at the top is that until the clock strikes midnight on Monday, we are still working nonstop on the goal of making our soft cap of $8 million.”
“We were founded to deliver a decentralized network for ethical journalism to the people, so nothing is more painful for our team than to witness how challenging it has been for motivated Civil supporters to wrestle with the user experience challenges involved with our unique consumer token product.”
The company also added that
“The Civil Media Company did not and does not need the proceeds from this sale in order to continue operations.”
The report also identified that 681 individuals from 61 counties completed purchasing tokens during the sale, which accounts for $1,344,721.159 as of Thursday.
Most of the buyers, which includes 487 contributors – purchased less than $100 in tokens. 250 people were in the $100 to $500 purchasing range. And one purchaser purchased at an excess of $10,000.
“Another 1,671 individuals have committed another $798, 503.71, but are either stuck somewhere in the process or simply haven’t decided to fulfill their commitment yet.”
As for ConsenSys, it purchased $1.1 million in CVL tokens.
“We actually believe in shipping product before asking customers to pay for something. Looking at what happened last summer, a lot of people asked us why we didn’t get the cash while we can.”