Billionaire CEO Taizo Son Predicts ICOs Will Come to Dominate Fundraising

Regulators are scrutinizing the new red-hot fundraising trend in which start-ups and blockchain companies bring in millions of dollars by issuing virtual tokens to investors in exchange for money.

But one Japanese billionaire investor thinks that, with time, the so-called initial coin offerings (ICOs) will become one of the "greatest major methods" for start-ups to raise funds in the future.

Taizo Son is a serial entrepreneur and CEO at Mistletoe, which is a venture capital firm that is also part accelerator and part incubator. Son is the younger brother of SoftBank founder and Japan's richest man Masayoshi Son.

He told CNBC at the sidelines of the Singapore Week of Innovation and Technology that ICOs are a new way for early-stage companies, and even some nonprofit organizations, to get funded.