Colu, an Israeli startup building localized digital currencies on blockchain, secured $14.5 million from IDB Development Corporation. The funds represent both a corporate investment and part of the CL
Colu, an Israeli startup building localized digital currencies on blockchain, secured $14.5 million from IDB Development Corporation. The funds represent both a corporate investment and part of the CLN token pre-sale. IDB Development Corporation joins Spark Capital, eToro, Aleph, and Tom Glocer, the former CEO of Thomson Reuters, in backing the offering. IDB Group, Israel's largest holding company, operates across finance and insurance.
Amos Meiri, co-founder and CEO of Colu, described the investment as "a vote of confidence in cryptocurrencies and the role they could play in the retail market." "This strategic partnership with a group that has an avid commitment to the community, like we do, represents a big step towards expansion in Israel," Meiri said. "We are excited to collaborate with the IDB's team and look forward to making local economies flourish."
Sholem Lapidot, CEO of IDB Development Corporation, views blockchain and cryptocurrency technology as central to the future of payment systems. "IDB believes that Colu will help to support the growth of blockchain technology as a real life payment method. We are thrilled to be rolling out plans for increased innovation in our diverse industries," Lapidot said. "This investment, among others, is part of our genuine vision to integrate between the traditional and the new economy, combining customer centric approach with technological progress."
Colu started in 2014 to build blockchain-based digital currencies for local communities. The company launched its digital wallet app in 2017 and now operates across four cities in the UK and Israel. The platform has attracted 100,000 users who complete more than 85,000 transactions each month.
The CLN token, which Colu began pre-selling a month before this announcement, will launch on the Ethereum network as an ERC-20 token. It will grant access to the CLN network and function as an index representing the value of community currencies issued across the network. The token powers transactions and rewards retail activity.
The CLN network operates as a payment system built around everyday consumption. Communities can mint their own currencies on the network and distribute them as incentives for merchants and consumers who transact locally. Colu plans to hold its public token sale between January 18-25, 2018. The company seeks to raise $25 million through the sale.
