After raising $8 million from traditional venture capital firms, stationless bike and scooter startup Spin is reportedly planning to stage a Security Token Offering (STO) to raise $125 million.
According to a breaking report by Axios, Spin is planning to raise money from accredited investors, who will, in turn, be entitled to a portion of the company’s revenue. Insiders confirm that the STO is separate from the previously announced Pin Protocol (“Pin”), a blockchain-based reputation and rewards protocol for Spin’s network of shared bikes and other partners in the future, along with a corresponding cryptocurrency called PIN.
Initially launched as a bike-share startup, Spin has since pivoted to focus on e-scooters. According to an interview conducted in early May by Wired, Spin had seen a 61 percent day over day increase in rides since it launched in San Francisco in mid-March. Spin also has a contract with scooter manufacturer Ninebot to purchase 30,000 scooters a month through the end of this year. Notable investors in Spin include Grishin Robotics, CRCM Ventures and Exponent.
Spin scooters cost $1 to unlock and then $0.15 per minute. There are reportedly around 200 Spin scooters in San Francisco, each with a top speed of 15 mph and a total range of 15 miles.
Spin’s security token and blockchain approach help differentiate the company in an increasingly crowded market.
Competing e-scooter startup Bird just closed a $300 million Series D fundraising round, valuing the company at $2 billion, just weeks after raising $150 million. Adding to the mix, San Mateo-based Lime is currently in the process of raising a $250 million venture round led by Google’s investment arm, GV.
Spin has not confirmed the reports at this time.