The Switzerland-based online retail listings startup, ELocations, has begun the initial coin offering (ICO) pre-sale of its digital proptech security token: its so-called “eLocationsCoin” or eLOC. 

The startup aims to raise EUR 6 million ($7 million U.S.) through the pre-sale which will run until the 20th September. Investors can pay for eLOC tokens using standard fiat money, or with cryptocurrencies such as Bitcoin and Ethereum, and must list an ERC-20 compatible wallet to receive their eLOC tokens which will be distributed after the purchase.

In return holders will be offered a dividend of up to 60% per year (yielding 12%) according to the company. They can also receive a bonus of up to 30% when the eLOC security token becomes exchangeable for the “LCN” utility token – the utility token will be issued once the eLocations service platform is fully operational.

The official ICO or public “crowd sale” (the digital equivalent of a IPO) is due to take place at the end of the year. The company aims to raise a total of EUR 50 million ($58 million U.S.) – much of which is to be invested heavily in data.

The pre-sale follows on from a previous fundraising round which took place earlier this year.

Commenting on the pre-sale, founder and CEO of ELocations Marc C. Riebe said: “This is a milestone event – not just for us, but for the whole sector as we are about to (r)evolutionise commercial real estate just as Airbnb did in the residential property sector and Trivago in the travel industry.

A key delivery point is the introduction of smart lease contracts, where ELocations lays the foundation for billions of paper contracts to become electronically decentralised using the infinite potential of the blockchain.”

Riebe, (LinkedIn Profile), told the AIM Group that 1-2 further pre-sales may take place before the launch of the ICO at the end of the year. 

This mirrors an emerging trend highlighted in a recent TechCrunch article wherein ICOs are beginning to be structured more like traditional venture rounds, meaning companies can raise money as they need it in a series of  “seed” or “pre-sale” rounds rather than in one full-fledged ICO public sale.

You can read more about the ELocations ICO offer and milestones in a company document here.

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