Blockchain startup Initia continues to make waves, raising an additional $2.5 million in under two hours on Thursday via the angel investing platform, Echo. This round follows the company’s $14 million Series A announcement just a day prior. Echo, founded by prominent crypto trader Jordan Fish, aka Cobie, has quickly emerged as a disruptive force in crypto fundraising, giving investors a more democratic opportunity to participate in early-stage projects.
Echo’s Revolutionary Funding Model
Unlike the Series A round, which used a traditional Simple Agreement for Future Equity (SAFE) model with token warrants, the Echo raise was conducted through a token purchase agreement. This provided a unique opportunity for retail investors to participate in Initia’s growth, at a reduced valuation of $250 million, compared to the $350 million valuation set during the Series A. Sources with direct knowledge of the matter confirmed this valuation drop, highlighting Echo’s emphasis on fairness and wider accessibility.
Cobie’s Echo platform, launched in April, aims to decentralize fundraising in the crypto space, allowing startups to engage a broader audience without concentrating ownership among a few venture capitalists. Echo users, ranging from small-time investors to larger entities, can buy into promising blockchain projects, offering the kind of inclusivity rarely seen in traditional fundraising rounds.
Initia’s Unique Approach to Fundraising
Initia co-founder Ezaan Mangalji, better known as Zon, expressed the importance of keeping insider supply low and prioritizing community engagement. “Crypto has always been about public ownership, but in recent times, we’ve seen projects plagued by high insider supply and low float, damaging to community users,” Zon explained. “That’s why we made a conscious effort to sell only 15% cumulatively to early contributors.”
This community-driven model resonates deeply with crypto enthusiasts who have grown skeptical of projects dominated by a small circle of insiders. Echo’s low maximum investment limit of $5,000 per person in the Initia raise demonstrates this commitment, resulting in over 500 participants, with approximately 800 joining the round. This marks Echo’s largest single group allocation to date, surpassing even previous fundraises by other blockchain innovators like Monad Labs.
Echo’s Growing Influence in the Crypto Space
Echo, despite being relatively new, has already raised close to $20 million for various startups and token projects. Cobie acknowledged the platform’s early-stage challenges, candidly stating, “Echo still sucks tbh, and everything is still broken because we just launched a few months ago — but it’s slowly getting better.” Despite the platform’s issues, Cobie expressed gratitude toward founders like Zon and Echo’s community members for their patience as the platform continues to evolve.
Initia’s success on Echo underlines the growing shift towards fairer, more transparent fundraising models in the crypto world. With Echo, Cobie is paving the way for blockchain projects to achieve sustainable growth while ensuring that early supporters and community members are not left out of the action.
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As the blockchain industry pushes forward, platforms like Echo are proving that decentralized, community-driven funding models have the potential to reshape the financial landscape — one token raise at a time.
Initia’s rapid $2.5 million raise via Echo sets a new benchmark for blockchain startups looking to combine decentralization with public ownership. With Echo’s continued growth, the stage is set for more groundbreaking projects to thrive without the constraints of traditional VC backing. All eyes will be on Initia as it develops its Layer 1 blockchain and rollup-centric platform, poised to capitalize on the community-driven momentum that platforms like Echo are fostering.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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