BlockGrain prepare to launch for $25 million raise after successful $3.5 million pre-sale

KEY TAKEAWAYS:

• BlockGrain founder, Caile Ditterich, has changed his mind on the viability of ICOs after the regulations put in place following successful ICOs in Australia such as that of Horizon State and Power Ledger.
• An ICO now seems an appropriate solution for the agricultural tech company and a method to keep opportunities for raising capital open.
• The improvements the Australian Tax Office (ATO) have introduced on taxation of ICOs has also increased the BlockGrain founder’s confidence.
• Blockgrain have already raised $3.5 million in pre-sale, aiming for a total of $25 million for their ICO.
• The aim of Blockchain’s ICO is to “scale further and develop its numerous betas currently trialling in the market.”

BlockGrain is an Australian agricultural startup company that aspires to resolve the inadequacies of farmers and grain dealers over the logistics network. BlockGrain was established in 2014 and was offered $1 million from the NEM blockchain funding, however, the founder decided to reject the offer to keep the company’s choices unrestricted.

The founder of BlockGrain was more inclined to the Australian ICO market due to the lack of danger involved. This is because a secure legal structure for Australian ICOs has arisen, and has proven successful for startups. Legally, government organisations such as the Australian Taxation Office (ATO) have learnt how to deal with virtual currency. The ATO have improved their knowledge of applying tax to ICOs and have resultantly placed necessary policies in place. Moreover, the Australian government has also adopted this.

BlockGrain has earned a $3.5 million donation from independent Australian investors that the company aims to make a part of their $25 million target. However, investment opportunities are seen by investors as a way of receiving tokens at a discount, which the founder of BlockGrain does disagree with. The founder believes that fundraising should be done voluntarily and differs from an initial public offering (IPO), which involves companies discounting their stocks to attract
investors.

Therefore, the founder of BlockGrain says that their choice of using an ICO was to increase funds for the company to mature. The founder encourages startup companies to ensure their product works and that they should have contracts prepared.

About BlockGrain

First industry-wide platform to provide seamless integration between growers, grain brokers, buyers and logistics providers building the best automated software solution to solve the agricultural industry’s greatest supply chain issues.

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