How the block chain will prevent events like “Uber civil strife”


nnnStroke: Benchmark Capital and Uber’s former chief executive officer Travis Kalanick’s lawsuit has recently become the focus, also led to the digital currency and block chain experts to think about this event. They believe that the digital currency is conducive to preventing the occurrence of similar things, because it can make the shares of private companies to become the same, as the listed companies, as the parties to bring convenience and benefits.n
nnTranslated by: Inan
nThe solicitation of private companies’ equity in digital and block chains will make private companies backed by venture capital more like listed companies in the future.n
nThese have a profound impact on the venture capitalists and the culture of the fast-growing private companies they support.n
nInvestor Benchmark Capital sues Uber’s former chief executive, Travis Kalanick, as one of the most important news in the technology industry. If Kalanick wins the lawsuit, then Uber’s $ 68 billion jumper may continue to exist as a private company. If Benchmark forces it to set up a more independent board, then Uber may accelerate the pace of IPO.n
nAnd the block chain will make a similar situation almost no longer happen.n
nThe reason is as follows:n
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nAvoid liquidity trapsn
nI recently discussed with David Sacks that the rise of digital money would lead to “quota” of non-current and liquid assets.n
nAt present, investors are mainly through VC companies to invest in start-up companies. You have to give the money to the company for 10-12 years. You trust them to invest in their own start-up companies (such as Uber). You hope that the future through this investment to obtain a good profit return. But this investment can not be realized. In the next ten years, you can not use the money to deal with some urgent needs. Because the money became VC company.n
nIn the future, almost any private investment – from a limited partner in VC’s investment to house mortgages – can be “meta-currency” and traded.n
nThis means that the real-time value of a private company will be made public, and everyone can see and possibly trade through the block chain. People can own the investment, their own decision in six months or a year later to sell it.n
nIn turn, as for private companies that sell shares – including direct selling of shares directly to venture capitalists or allowing employees to sell shares in secondary markets, their valuations will no longer be determined by only a small number of investors.n
nThe shares of these companies will be “tois” and fluctuate every day in the chain chain, as listed companies in the stock market to see their own value is changing.n
nUber, for example, has a final valuation of $ 68 billion, which is determined by investors, founders and the board of directors. Since then, the company has suffered a series of scandals, litigation and management changes. However, its valuation will remain at $ 68 billion before the next sale of the stock, about 4.5 times the current valuation of Snapchat. A report by The Information shows that its potential investor, SoftBank, is seeking to buy the company for $ 40 billion to $ 45 billion.n
nHowever, once Uber’s private stock is tipped, its valuation will be changed according to the transaction price, which can be seen by all employees, investors and external observers.n
nThis will immediately change the behavior of private companies. Leaders such as Benchmark, and Bill Gurley, former board of directors of Uber, will be able to easily sell their shares as they wish, without waiting for an IPO.n
nThis will allow all private company CEOs to follow market-driven rules.n
nIf Uber’s valuation fell from $ 68 billion to $ 45 billion over six months, would it have an impact on the company’s board of directors and management? I guess it will force a bigger leadership change earlier.n
nUber board member Arianna Huffington whether to support Kalanick or Gurley will become irrelevant. If Uber’s valuation fell by $ 23 billion within six months, the board would urgently need to take corrective action to raise the valuation to the previous level.n
n”Wall Street investors are short-sighted and greedy, and the technology world is focused on long-term development and internal communication, allowing companies to mature slowly.” But Wall Street has made a more accurate assessment of the company’s valuation because of It is a more in-depth market, with more participants. But this accuracy does not allow the company to avoid the problems it will soon face.n
nThis will not prevent the establishment of large companies and their full potential. Jeff Bezos is one of the great founders of the technology world, and Amazon has been a public market since 1997 and has been continuously encouraged by its higher share price in the market.n
nBitcoin will make all private companies a listed company in the future, which is beneficial to all.n

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