TokenFunder: Democratizing Funding and Investing with Blockchain

Jean-Philippe Vergne; Alexander Li

Product #:9B18M186

Supplier:Ivey

Discipline:Entrepreneurship, General Management

Setting:Canada, 2016-2018

Details:Case (PDF) • 12 pages • 2018-12-11

Subjects:

Geography:

Canada North America

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$9.71

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TokenFunder Inc. (TokenFunder) was a Canadian blockchain start-up focused on developing a platform to help companies perform token offerings in a legal and compliant way. The Ontario Securities Commission had granted the firm a sandbox that permitted it to bypass certain securities regulations for a brief window to test out its business model. TokenFunder's chief executive officer and chief operating officer knew that potential partnerships with various accounting firms, legal firms, incubators, and venture capitalists could be incredibly beneficial to the business. TokenFunder thus had to decide whom to partner with and how to get firms into its ecosystem.

Learning Objectives

This case can be used at the undergraduate and graduate levels to teach strategy, entrepreneurship, innovation, digital business models, and financial technology. After working through the case, students should be able to do the following:

Understand blockchain.
Identify the risk in entering an unregulated market.
Realize how competitive the space is and that being the first to market is key.
Understand the unit economics behind TokenFunder, and evaluate the feasibility of the business model.
Determine a partnership strategy for a start-up when dealing with established firms.
Demonstrate a deeper knowledge of the various business models applicable to platforms.