Civil Blockchain Startup Holds Unsuccessful Funding Round
Civil, a startup from New York aimed at developing blockchain in the field of journalism, announced an unsuccessful sale of its CVL tokens. Therefore, all funds will be returned to investors, CoinDesk reports citing the blog of Matthew Iles, the company's founder.
The aim of the startup was to attract at least $8 million, but this wasn’t achieved. As a result, all investors who participated in the token sale, which ended on October 15, will receive their funds back.
In 2017, Civil received $5 million for its development from the Consensys startup. On September 18, 2018, the sale of the CVL tokens started, and the company intended to raise from $8 million to $24 million in a month. The money should have been spent on development of blockchain for the needs of journalism. Currently, all depositors can submit a request for an immediate return of their investment, and for those who don’t, the funds will be directed to the accounts automatically until October 29.
Such an outcome was expected because a few days before the end of the sale period the company’s head informed that the amount of attracted funds wasn’t the same as was planned.
As previously reported in the article of The Wall Street Journal, Civil made unsuccessful attempts to sell its blockchain platform to certain media companies, including The New York Times, The Washington Post, and Dow Jones. In turn, Forbes announced the cooperation with Civil to publish its materials on blockchain.
Nevertheless, Matthew Iles promised that he would make another attempt to organize the funding round, for which he would prepare much better.