“Fortune”: Compared with VC, ICO can raise more funds for Bitcoin start-up companies


nnnRaiders comment: ICO as a new type of co-ordination has been in just a few months swept the entire chain industry chain. Relevant data show that the traditional VC in the past 8 years for the block chain start-up companies to raise 1.7 billion US dollars of funds, and ICO only raised funds for this year to reach $ 1.3 billion, which fully proved ICO more than VC For these emerging companies to bring the necessary funds for development. While it is unclear how ICO will develop in the future, the huge financing advantages it shows can not be ignored.n
nnTranslated by: Inan
nA few months ago, when the first tokens (ICO) emerged as a new way of financing a start-up company, people were wondering if this way of digital money would subvert or replace traditional venture capital firms.n
nNow, there is no doubt that ICO this unregulated financing (companies can sell their own digital currency or tokens to investors) has been ahead, at least in the chain chain industry is the case.n
nUp to now, the company raised funds through the ICO this year is nearly four times the amount of venture capital. According to PitchBook’s latest data: So far, ICO has raised nearly $ 1.3 billion for the chain chain startups in 2017, compared with $ 358 million in traditional venture capital inflows.n
nIt should be noted that the venture capital is still very popular among the chain chain companies. According to CBInsights, the previous quarter was the best quarter of the chain and bitcover VC financing, more than doubled from the first quarter, up 89% year-on-year.n
nHowever, ICO grew faster, and the funds raised this year were nearly six times that of last year.n
nIn line with this trend, the ICO’s financing that emerged a few months ago will bring more money to the previous chain than any previous VC investment, according to PitchBook, who has been in the past eight years To a total investment of 1.7 billion US dollars.n
nEven the ICO entrepreneurs are surprised by their whirlwind swept trend.n
nAt a panel discussion hosted by BlockchainDriven last Thursday, Morgan Hill, an investor at Attis Capital, announced that he will set up a digital currency hedge fund company called AxionV in August. Unlike MetaStable, AxionV, which has recently secured funding from Andreessen Horowitz, Founders Fund, Union Square Ventures, Bessemer Venture Partners and Sequoia Capital, hedge fund startups. Hill said AxionV will conduct ICO, the target financing amount of 30 million US dollars, and then use the funds to invest in other ICO.n
nHe also referred to a hedge fund manager in London, pointing out that the manager is planning to carry out an ICO that puts the entire Koran on the Internet, using the emerging digital money to reward people who digitize the text. “My first thought was that it was crazy,” Hill said.n
nBut he later accepted the idea and admitted that “religion is a very important message”, the project “does provide great value.”n

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