What is Private Sale?

A private sale is generally the first round of funding that is allocated to a blockchain startup prior to the pre-sale and public sale, or Initial Coin Offering (ICO). The purpose of a private sale is to give large institutional investors the opportunity to invest large amounts of capital to fund the development of projects early on. While this practice may be criticized because of its arguably centralized approach, it is often a viable way for startups to acquire the capital they need to realize their ongoing development goals.