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A Building Week

by Richard Hendrix


The Wall Street Journal asks, "Who Needs Venture Capitalists When You Have Initial Coin Offerings?"

An emerging meme is the total death-and-disruption of VC at the hands of ICOs, which allow entrepreneurs to skate around the traditional gatekeepers of capital to raise $ millions on ridiculously favorable, sometimes nonexistent, terms. This article from the WSJ is an interesting read because it gives an idea for how people outside of crypto and VC are looking at the recent madness. There can be no doubt that ICOs constitute a new paradigm in capital allocation that is only just beginning to be explored, but it's also undeniable that VCs do a whole lot more than write checks. Look for this meme to evolve substantially in the coming months when disappointed retail investors begin to realize that they would've been better off taking a page or two from the VC playbook. 


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