As has been widely reported, in the last few months ICOs have raised significantly more money for blockchain startups than has come from traditional venture investors. This can be seen as a sign of the long discussed unbundling of venture capital. The idea is that while VCs bundle capital, advice, governance and possibly services (e.g., help with recruiting), technology may make it possible to separate out these different functions. Today I want to focus on “governance” which is the least und...

I have written several posts on token sales and ICOs already, including some “Thoughts on Regulating ICOs” and “Optimal Token Sales.” With the continued fundraising success of new projects, here are some observations on investment terms and their potential implications for achieving successful outcomes. Many projects these days have a private fundraising event that precedes any public token offering. These take varying forms, including investments in corporations and some type of SAFT (Simple...

As has been widely reported, in the last few months ICOs have raised significantly more money for blockchain startups than has come from traditional venture investors. This can be seen as a sign of the long discussed unbundling of venture capital. The idea is that while VCs bundle capital, advice, governance and possibly services (e.g., help with recruiting), technology may make it possible to separate out these different functions. Today I want to focus on “governance” which is the least und...

I have written several posts on token sales and ICOs already, including some “Thoughts on Regulating ICOs” and “Optimal Token Sales.” With the continued fundraising success of new projects, here are some observations on investment terms and their potential implications for achieving successful outcomes. Many projects these days have a private fundraising event that precedes any public token offering. These take varying forms, including investments in corporations and some type of SAFT (Simple...