Healthcare cybersecurity startup Patientory recently announced that it raised $7.2 million over 3 days through cryptocurrency crowdfunding – a relatively new fundraising strategy.
The crowdfunding drew in 1,728 contributors, who bought 70 million PTOY currency tokens between May 31 and June 3, according to a company news release. Atlanta-based Patientory floated the tokens on cryptocurrency exchanges including Bittrex, TokenMarket, HitBTC, and ICObazaar.
There appeared to be some hitches to the process. Patientory in a follow-up announcement said it was holding off on releasing the tokens to contributors: “Although we were ready to immediately release them, we have held off because an audit is underway. Once the auditors publicly release their audit (which we expect in a few days or up to 2 weeks), we will release the tokens.” (A company spokesman said smart contract code audits are quickly becoming standard procedure for companies pursuing this crowdfunding model.)
Still, $7.2 million over 3 days is impressive and provides another example of how startups, including those in the medical device industry, are seeking new strategies to raise money versus the traditional venture capital route.