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.
Get the full story on our sister site, Medical Design & Outsourcing.