Op Ed: “We Never Thought of That” — When Venture-Backed Companies Undertake Reverse ICOs

By Dror Futter '89LAW, Partner, Rimon, P.C.

With well over $3 billion raised this year alone, in very little time initial coin offerings (ICOs) have emerged as a major source of venture finance. Even companies that have already raised conventional venture funding will be tempted to raise additional funds through ICOs. Although not fully intuitive, some have labeled token issuances by entities that previously obtained equity financing as “Reverse ICOs.”