We already know how massive blockchain is. A growing number of blockchain-based startups are opening around the world, and while some may have found immense success, there are some sad stories as well.
The latest to taste failure is Civil, a New York-based startup that started with the aim to use blockchain to improve journalism. However, the company could not meet its pre-set target and will now refund the amount it acquired through the ICO.
More About the Funding
The company had a minimum target of $8 million, but it failed to hit the mark, as confirmed by the CEO, Matthew Iles, via the company’s blog.
It said. “We watched the CVL token sale’s progress with the rest of you. We expected a different outcome when we launched the sale, but circumstances changed. We learned a lot of lessons which we will reflect on in the coming weeks and share with our community and the public.”
The ICO officially began on Sept. 18, after the company received an investment of $5 million investment from Consensys, an ethereum startup.
The company set the goal between $8 to $24 million but could not meet the target. According to a spokesperson, the money will be refunded by October 29. However, participants can also request an immediate refund if they need money.
The Problem Was Always Visible
While the exact figures are not yet available, experts had predicted the venture to fail given that Civil could only manage to accumulate $1.34 million by Oct. 10, less than a week away from the announced deadline.
The blog post highlighted the failure. It read, “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.”
What’s the Future?
Civil is down but not out. According to rumors, the company is in touch with several big media agencies including Dow Jones, the New York Times, and The Washington Post. While it hasn’t found much success in this regard, it was recently in the news for its agreement with Forbes to publish Civil’s content.
The company plans to initiate another round of funding, expected to be “very different from the last one” in the next few weeks.