Initial coin offering
Also called: ICO
ELI5
A public sale of digital tokens to raise money.
Used in conversation
“The initial coin offering requires jurisdiction-specific legal review.”
Definition
A token sale used to raise capital, often before a network or product is fully developed.
Here “Initial coin offering” means: A token sale used to raise capital, often before a network or product is fully developed.
Pitch context
You will see “Initial coin offering” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.
Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Connected terms
- Token financingThe search label “ICO” can route to both entries.
Sources & evidence · 5
Direct term-level sources and supporting source families.
- Y Combinator — Safe financing documentsDirect source · practitioner · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsDirect source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16