There have been insinuations that venture capital is out of fashion as a means of startup funding with respect to ICO which has literally held sway in the past twelve months. There are projections also that Initial Coin Offering would have a market cap of one 1$ trillion in the next twelve months.
The supposed decline of venture capital was linked to the unwillingness of the sector to innovate even in the face glaring advantages and ease of adaptation to ICO by startups. This was the conclusion of CryptoFriends, a group of influencers and financiers in a conference in Singapore.
Speaking in the conference that was organized to bring together crypto enthusiasts, financiers, and startups involved in crowdsale, the chairman of the Bitcoin Foundation, Brock Pierce said that today’s venture capitalists do not have the welfare of the entrepreneur in mind, unlike earlier venture capitalists who were committed to the success of startups.
He said that what is obtainable these days are venture capitalists who do not innovate yet are hoping to finance innovators. However, he is of the opinion that there are committed venture capitalists who are serious about helping startups and that many of them have seen the potentials of ICO as a tool with which liquidity could be brought to an illiquid sector and are making the move of adopting it.
According to Mr. Pierce, ICO just like the blockchain on which it is based has literally decentralized innovativeness with the attendant result that the next big fintech or entrepreneurial success must no longer come from Silicon Valley, but could emerge from any part of the world such as Asia or Africa.
This has been made possible by the versatility of the new startup funding model with ICO which is neither limited by geographic barriers or national currencies. That startups and entrepreneurs are now looking up to ICOs to fund their concept means that it is the trend of the future. Venture capitalists who refuse to acknowledge that would be out of business before long, he said.
Other members of CryptoFriends who were involved in the presentations anchored by Eric Benz said that even though there has been the belief that 90 percent of startups usually fail within three years, that that may be as a result of the noncommittal attitude of venture capitalists towards startups.
People like Sefi Golan who is a crypto enthusiast said that with startups raising enough funds from ICOs that we are going to see a paradigm shift which implies that with enough funds from ICOs, that startups will likely be more stable and have the capacity to weather upstarts storms.
The CryptoFriends event which was sponsored by BlockEx, CoinTelegraph, Reports, and Arbitex was held at Hotel Jen Orchardgateway and attracted more than 300 crypto influencers and ICOs which were the main attraction aside the speakers and participants who brainstormed on the potentials and ideas that will lead to the advancement of the ICO ecosystem.
The CEO of CryptoFriends, Daria Arefeva expressed delight at the event which brought together blockchain professionals and upcoming ICOs saying that the mood and excitement in the event show that ICO will continue to hold sway as a crowdfunding of choice far into the future.