Blockchain Project Factom Raises $1.1 Million in Crowdsale

Factom has received $1.1m in new funding as part of an equity crowdsale hosted by UK-based crowdfunding service BankToTheFuture.

Billed as a data and record keeping layer for bitcoin, Factom had offered 7.8% equity toward a $700,000 minimum investment goal to be reached by 9:39am GMT today.

The project ultimately exceeded this goal, drawing 323 investors; each providing an average contribution of roughly $3,400.

Factom Foundation chairman David Johnston credited the positive perception of the company as a key factor in the raise, telling Bitcoin News:

"The community has been very supportive of Factom Inc and I believe people are encouraged to see recent in roads being made with large enterprise groups using the blockchain."

Factom had raised 2,278 BTC (then roughly $540,000) through the public sale of factoids, the transaction token for the Factom network, earlier this year. Previously, it was bootstrapped through an undisclosed network of private investors.

In March, the Factom Foundation, the community body that overseas development of the Factom protocol, relocated to London. At the time, it credited its permissive attitude toward software sales as a key factor.

Growing interest

The funding comes on the heels of growing interest in the Factom project from state governments and financial institutions.

For example, Factom recently partnered with the government of Honduras on a land title initiative, and serves as an informal consultant to insurance giant USAA.

Alex Marquez, managing director of corporate development at USAA, explained the relationship to Bitcoin News, stating: 

"Factom have given us insight and perspective on the technology, which has gone a long way toward informing the team at USAA that’s studying how blockchain might help us better serve our members."

The raise follows the debut of the project's first release candidate this week, a step in the product rollout that precedes its forthcoming beta client.

Image via Factom

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