Many startups across the world are skipping venture capital dollars to raise funds through ICOs. Despite the regulatory ambiguity, startups are looking to skip traditional VCs for the ease and democracy associated with the ICO world. The year 2017 was a tipping point with ICOs generating at least 3.5 times more capital than VCs for blockchain related projects.
Such a massive change in the dynamics of a market long dominated by venture capital firms requires all stakeholders to evaluate what is the future role of VCs and will they remain relevant in the new era of ICO fundraising.
Token 2049: Cryptocurrencies and VC Funding
A panel discussion at Token 2049 featured a discussion on the future of venture capital in the post-ICO world. The participants were Jehan Chu, co-founder and managing partner at Kenetic Capital; David Chang, a partner at Hong Kong-based Mindworks Ventures; Darren Camas, a senior advisor at Emurgo; Jason Fang, a managing partner at Sora Ventures, who also worked in open-ended funds and six months ago joined the crypto company mif.io, started by Jeffery Wong; Peter Vessenes, a managing director at New Alchemy, who has experience at the Bitcoin Foundation; and Paul Veradittakit, who is a partner at Pantera Capital, a hedge fund investing in cryptocurrencies since 2012.