ICOs are preferable to venture capital funding for many start-ups first and foremost because ICO promoters and their developers are not forced to sacrifice equity in the project in exchange for the funds they raise.
Source quote, verbatim
First and foremost, ICO promoters and their developers are not forced to sacrifice their equity in the project in exchange for the funds they raised.36
From
Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017), III. Disruptive Effects, p. 12 https://ssrn.com/abstract=3067615 · source PDF
Cite as
Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615
Holds when
start-ups choosing between ICO and venture capital financing
Classification
mechanismsupport: arguedinnovationsecurities-law
Related claims
supportskaal:claim:3002908-039 Initial coin offerings have overtaken venture capital as a funding channel for blockchain start ups, raising 3...
restated_bykaal:claim:3117224-002 Unlike other means of capital formation, ICOs allow promoters to raise funds without sacrificing equity, so pr...
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