Smart refrigeration business Zeto is looking to raise €20m via an initial coin offering (ICO). The company’s software is designed to help customers, including Lidl, monitor their refrigeration in real-time. It raised €500,000 via a pre-sale last week. It’s one of the first ICOs by an Irish firm. Zeto, which is backed by Kernel Capital, has been working with solicitors Ronan Daly Jermyn and one of the ‘Big Four’ accountancy firms “to ensure a robust legal and financial framework” for issuing the cryptocurrency.
CEO Stephen Slattery said the company was very confident of reaching the €20m target, but said the ICO was a high-risk investment. He said the company is introducing blockchain technology – the system that underpins Bitcoin – to its product. Blockchain creates a tamper-proof database of records, which is publicly available to users.
The process does not involve Zeto issuing debt or shareholders selling down equity. Instead coin buyers will look to generate a return from the coins increasing in value. Zeto plans to make its products available at a discount to those who use the coins, one of the ways in which demand might rise. It is also examining other uses for the coins.