Popular posts

I think ICOs are one source of funding, but I don't necessarily think they are the holy grail. I don't belive VCs will be completely eliminated... at least not the GOOD ones. I do still believe the good VCs add value.

While ICOs are a way to raise money, there certainly are a lot of tradeoffs you make. For example, you now have 1000s of investors that you have a fiduciary duty to vs. just a handful. You now have 1000s of investors you have to manage and communicate with frequently vs. just a handful. You now have to act like a public company at seed stage vs. being able to stay private until you are ready to be more public about financials, growth, etc.

I agree that VCs add more value than just capital. Why not include those same people in a Private ICO (like arcblock.io did). A PICO would generate liquidity for early employees and investors. Social Capital is trying to solve the same problem using a SPAC, but this forces the company to be public, which may not be desirable. (techcrunch.com/2017/09/14/social-capital-to-take-…) From a pure technical standpoint it seems simply superior than the standard VC path. Instead of issuing shares in private company that make take 10 years to go public, why not instead issue ETH based tokens? I'm sure there are laws I am unaware of that make all of this far more complicated that I know, and we are still in the early days of crypto currencies.