Earlybird Venture Capital Invests Into XAIN Blockchain Startup Expansion
Crowdfunding on the blockchain has never been more effective. Thousands of Initial Coin Offerings, or ICOs, have raised billions of dollars for companies offering to innovate and change the nature of the cryptocurrency market. But in the recent months, the success of many coin offerings has, in many ways, floundered.
The initial excitement of the market eventually gave way to an oversaturation within the ICO industry. Thousands of cryptocurrencies have been created as the backdrop to organizations promising new and exciting technologies and platforms. The proliferation of this extensive market has inevitably led to a decrease in the quality of many currencies, as well as the companies behind them.
This oversaturation is one of the main reasons why some governments are interested in regulating the market more than ever before. Regulatory authorities all over the world are concerned by both the lack of oversight in the market and the quickly-decreasing quality of some coin offerings.
We are excited to announce that XAIN has raised €6million in a Seed round led by Earlybird Venture Capital next to strategic Co-Investors from Asia.We are excited to take the next steps together with Earlybird & our Co-Investors! @EarlybirdVC pic.twitter.com/MsQxtxYnoy
— XAIN (@XAIN_AG) June 5, 2018
But not all ICOs have been marked by a lack of excitement and depreciating value of their newly-minted coins. In fact, some winners in this Initial Coin Offering season may help to revitalize public interest in the crowdfunding platforms which dominated the last quarter.
Some organizations are even taking advantage of traditional venture capitalist models to help offset some of the ineffectiveness of modern blockchain crowdfunding operations. XAIN AG is one such organization; the blockchain-based company won $6 million in a massive funding operation led by a venture capitalist firm from Berlin.
What Is XAIN AG?
XAIN is a startup company offering a unique “user-centric access control protocol.” The technology is poised to offer a user-friendly interface which gives its controllers access to a myriad of functions to increase trust between enterprises and their clients. Additionally, the system is supposed to offer the ability to integrate third party applications securely and seamlessly into the existing network, without threat to the user.
The key application of the technology is that it implements blockchain technology in a way that quickly and efficiently transfer information. For car users, for example, this means that consumers can easily transfer control of their vehicle temporarily to third parties, such as a delivery service or an emergency operator.
XAIN AG Funding Efficiency
The organization first made use of the traditional ICO format for their funding; information on their Initial Coin Offering can be found on the company’s ICO page. This campaign was successful, garnering significant funding for the organization and the technology they continue to work to develop.
But the biggest component of the successful fundraising operation by XAIN AG is their reliance on the traditional venture capitalism which has driven non-ICO companies for hundreds of years.
They partnered with Earlybird Venture Capital, a venture capitalist firm based out of Berlin. Together, the company was able to raise over six million dollars for their project. Additionally, the company won a lucrative competition during Prosche’s Blockchhain Innovation Contest in 2017. The car company was interested in the development of XAIN’s technology for application as a blockchain-based interface and control solution within their own line of automobiles.