Posts Tagged ‘theresa’

A venture fund digital token could solve a problem in venture capital. “My phone is blowing up with other VCs saying I want to do this — not blockchain and bitcoin VCs — because the biggest problem with venture, the thing everyone hates about venture capital, is that it’s delivered fantastic returns but no one wants to invest in an asset that’s locked up for 5-10 years. The idea you can invest in a venture fund and have liquidity is probably the most innovative thing that has ever happened in venture capital.”

Stan Miroshnik, managing director of the Argon Group, an investment bank focused on cryptocurrency- and token-based capital markets, which will be managing the crowdsale, said the BCAP was significant for several reasons.

“What you don’t have in traditional LP investment is the freedom to sell your limited partner interest. There’s usually a redemption period, a redemption notice period, a valuation process and then it’s unclear what the value of your piece of the portfolio is. What’s unique here is not only do you have the freedom, but the secondary market tells you what the market’s view of the worth of this asset is,” he said

Source: Want VC Returns? This Firm Makes It Possible For Everyday People

These crowdsales of new cryptocurrencies give entrepreneurs access to funding from the crowd, and token buyers, in turn, get something akin to a form of equity in the network, since, if the platform becomes more popular, the price for their shares should rise

Some of the thinking around the legality of ICOs stems from whether or not the token has utility, such as how people who buy a golf club membership presumably do so because the buyer wants to use the club, not because the value of the membership may rise. However, if developers sell a token before the network has launched, that muddies the distinction.

One characteristic of the sales on CoinList that may help curb some of the current rampant speculation is that they will only be open to accredited investors who earn $200,000 or more a year or have a net worth of at least $1 million. On the other hand, that might also dampen some of the enthusiasm for CoinList, because some have felt that ICOs have been democratizing finance and making venture-type deals available to the average retail investor rather than only the wealthy.

Still, both CoinList and SAFTS could be good antidotes to the problem of groups raising money before they have a product. It could get more groups to hold an ICO is held at the same time as the launch of the network, which, he says, “makes the crowdsale more about getting a piece of software instead of being an investor in a future piece of software.”

Source: Want To Hold An ICO? CoinList Makes It Easy — And Legal