Are ICO’s the new Venture Capital Funds? Wow New scope to earn...Hurryyyy....!!!!!steemCreated with Sketch.

in #ico7 years ago

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Are ICO’s the new Venture Capital Funds?

The money rose through cryptocurrency and blockchain initial coin offering has surpassed early stage of Venture Capital funding for online/Internet companies from last few months. ICO’s are a way for start-ups to raise money through users, and the user returns a token or digital currency, as similar to shares in the firms. ICOs get popular among cryptocurrency and blockchain start-ups and having exploded in few months.

Many companies raised a large amount of money via ICOs, A start-up called Tezos raised over $230 million. The companies are created new blockchain- the technology that was underpinning the likes of crypto-coin like- Bitcoin or Ethereum. One more company also raised $153 million naming Bancor. Now ICOs are increasing as a new business model leveraging blockchain technology will sustain as the digital way, combining with crowdfunding with new hybrid asset calls of equity and currency as Bussmann said.

Venture Capitals are essentially an intermediary business, between limited partners and entrepreneurs. There is some reason behind this ICOs are a threat to the Venture Capital funding models, an ICOs having also headaches to entrepreneurs, as compared with Venture Capital funding processes:-
• It comes in shorter road shows –as ICOs need to be carefully prepared f weeks or may in months in advance but their execution happens in a matter of hours.
• ICOs having no board member / no governance authority – no any shareholders agreements, no SEC IPO legal documentation.
• Not preferred liquidation, no liquidation clause and none of the usual Venture Capital protections.
• There is no any fund size Venture Capital excuses – ICO can be as small or as big as the project makes as necessary.
Currently, ICOs are giving access to massive amounts of Venture Capital funding Bancor, Tezos, EOS; all are raised more than $100 Million of the amount in the pre-launching period. They raised those amount at a stage their development with Venture Capital.

In this community, all the members and experts well know perfectly that what they are doing, a small minority taking advantages of the credulity and greediness. The ICOs user interface is far from mainstream, it seems like a community supporting and boosting ICOs on the software infrastructure side. They well known of mechanism and add a touch of crowding, and until we get there, making maximum of money. After some projects will fail, stellar execution will generate the new Betfair or new Firefox’s to the world. The venture capital industries are beginning good, hard look and new financial instrument coming in crypto-world a community of ICO’s, as token sales, this is new fundraising way through blockchain fueled ideas.

The venture capital has been standoffish to the ICO phenomenon are becoming more interested due to a number of reasons like – AN investors of cryptocurrency makes a massive return in last year – 2016. With cryptocurrency from blockchain startup Monero and NEM both increasing unbelievable up to 2000% in values, values get double in few month of -2017 like Ether.
Secondly, the Venture Capital becoming more interested in behalf of ICOs is due to liquidity in cryptocurrency. The acquisition investors can see the gain more quickly than traditional IPO, they pull own profit more easily via ICOs, they just converted own cryptocurrency profit in Bitcoin and Ethereum on any of the cryptocurrencies exchange and converted into fiat currency through online services such as Coindesk or Coinbase. At list few Venture Capital firms are moving into cryptocurrency, this blockchain capital is set to raise a third fund through a digital token, where investors can invest own asset without knowing the movement on up year of the end, via digital token which is called BCAP.

As the Crypto-assets are as a security, which begins with $10million valuation which increased $10 billion, as stocks split the founding crypto-asset gets denominated in small units like 100 to one. Which is depending upon the initial crypto-asset and its governance contract according to designed with protection. As venture capitals are taking a hard look at this phenomenon, not about to funding only, but with blockchain projects in near future. We will know by everyone here to easily fund open source software, housed under foundation, not corporations. That drives faster innovations. Blockchain technology from 1992 and opening up a wealth of new possibilities the promises to add values to numerous industries like – finance, health, educational, art and else.
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