Leon Fu: They raised 3 million dollars.
Tai Zen: They raised 3 million from the public, from the Crypto community.
Leon Fu: So there are 2 components of Factom. There’s the foundation which is a non-profit, and then there’s Factom Inc which is a full-profit consulting company. It’s kind of like there’s the Ethereum Foundation which was funded by the crowd sale, that’s why we have the Ethers.
That money went to the Ethereum Foundation which then built Ethereum. But now you’re seeing all these startups, and those are full-profit that are building on top of Ethereum. That’s a traditional startup, venture capital and all that.
So Factom is kind of like that, there’s the Factom foundation which did the crowd sale which issued the tokens and building the network. And then there’s the Factom Inc which is a full-profit company. So I think they raised half a million dollars, and the full-profit company raised about 3 million.
The reason it went from 10 cents to $1, if you look at the chart, is they raised 1.5 million right before Christmas. If you go o on crunchbase.com and type in Factom, you can see they raised a total of 3 million, and half a million came in mid-December. There are 2 major events that happened with Factom, one is Microsoft came in, that caused the price to move, and then this round the funding when up to one and a half million.
That basically took it from 10 cents to $1 in 3 weeks. Where the story is going is that they’re based in here in Austin, the whole team is here on Mopac, that’s where the office is, and they hold the Bitcoin meet up. So the tip I got is that they’re working on a series A, in the middle of closing the series A.
Rolen went 2 weeks ago or last week, he said that the series A is hoping to close it by the end of the month right now. They’re looking to raise 10 million dollars at 50 million dollar valuation, that’s what they’re going to try to do, 10 million for 20% of the company. In China, until right now that those guys, the chairman who’s responsible for investors and fundraising, he’s and a bunch of guys there right now in China.
Typically they use that when they’re going to do an IPO, they take the company on a road trip to all the investors before they go public. They’re not going to the public, they’re looking for a series A, but it’s basically the same thing. So they’re going around China trying to pitch it to their VCs.
And they got 3 or 4 lined up right now, I think on the whiteboard they got about 4 million, hopefully. They’re looking for 10 in this round. So the best reason in the short term is that they close this round by the end of March, and that news hits Coindesk sometime in April when they finished negotiating a few.
So the inside kit that we have is that they’re working on the series A, and they probably have it halfway done right now. I’m looking at Factom at an 8 or 9 million valuation, and if they get a 50 million valuation or even a 30, I think it’s going to 5 times.
Tai Zen: That’s just based on fundamental.
Leon Fu: I don’t think the market knows what’s going on. No one would know unless you go to this meet-up on Tuesday night.
Tai Zen: You’re basically getting the inside scoop because you’re there at the meetups.
Leon Fu: Because they run the Bitcoin meet-up in Austin, out of their office. That’s the inside scoop. Now is it gonna play out? I don’t know what’s going to happen in March, the next 3 weeks are in China, I don’t know how that’s gonna go, right?
Tai Zen: Well, I got some already. Hey, I have to run, let’s finish this later, okay?
Leon Fu: Okay.