Should Startup Founders Issue Their Own Cryptocurrencies To Launch Businesses With ICOs?
Start-ups, particularly those in the blockchain space, face a fundraising dilemma: To VC or not to VC? Should founders seek venture capital from a narrow group of investors to launch their businesses? Or should they issue their own cryptocurrencies and ask the decentralized “crowd” to fund their enterprises in an Initial Coin Offering (ICO)?
Companies have raised over $4 billion through ICOs in 2017 alone. To be sure, there are pros and cons in each route. But the best path in many cases is to combine the two and have the best of both worlds.