Silicon Valley Accelerator 500 Startups has not yet been involved in ICO


nnnHot Start Review: 500 Startups is Silicon Valley’s top international incubator, investing in many start-up companies, but it has not been involved in the recent increasingly hot ICO. Mike Sigal, the company’s financial and technology investor, explains the situation and points out that although it is interested in this way of financing, given the lack of scrutiny and lack of understanding, the ICO remains Hold on the sidelines. But from his remarks, 500 Startups are willing to participate in it.n
nnTranslated by: Inan
n500 Startups has always been active in supporting early investment, but it is worth noting that it has not been involved in emerging markets based on block-based ICOs.n
n500 Startups are some of the early investors of Bitcoin, who supported ChangeCoin acquired by Airbnb and Gyft, which was later sold to First Data. However, even if other investors who often support such start-up companies, such as Union Square Ventures, Boost VC and DFJ founder Tim Draper, have embraced this new investment vehicle, 500 Startups are still on the sidelines.n
nBut the company has not been involved in ICO so far because of lack of interest.n
nAccording to Mike Sigal, the company’s financial technology investor, he is not only interested in the way he buys retail sales through the purchase of digital tokens, and even hopes that his portfolio will be able to replenish cash flow using block chains.n
nHowever, Sigal said he was involved in ICO’s sense of responsibility to investors.n
nSigal told CoinDesk about his hesitation at an index financial conference earlier this month:n
nn”The concept of ICO may be contrary to my statements to my investors, so I am limited in some ways, and we have not conducted a real investigation, I am limited in terms of investment because I was Custody of other people ‘s funds.n
nn500 Startups has raised approximately $ 350 million from investors since its inception in 2010, investing $ 150,000 in seed investment in cutting-edge technology startups in exchange for a 6% stake.n
n500 Everyone in the Startups fund receives a prospectus from a venture capital firm detailing how much returns will be based on the historical model and predicting when a private stock will circulate.n
nLast year, Sigal helped help launch the entrepreneurial incubator for the bank pay platform Swift, who said that even the most successful ICO project did not meet the product market and did not specify what would be sold or who the client was.n
n”I am very sympathetic to those investors.” He added that in these cases are not clear, the loss may not only investors.n
nSigal explained:n
nn”I do not know how my compliance investment in ICO will have an impact on my investors.”n
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nAlternative wayn
nBut that does not mean that 500 Startups’ portfolio companies will only sit and see someone else to make a lot of money through this way of financing.n
nSignal said that at present, this founder can easily launch financing activities and do not have the opportunity to dilute equity is too difficult to resist.n
nHe also pointed out that the 500 Startups portfolio has more than 2,000 companies and almost can not know how many of these companies are planning ICOs or preparing to issue tokens to motivate their own networks.n
nHowever, according to the company’s information, CoinDesk was able to determine that at least one 500 Startups investment company plans to start the ICO later this year, which is in its early stages.n
nSigal said: “I am curious that if I invested in it, would my company be able to use it to make it easier and reward customers in different ways.”n
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nWait and seen
nIf the 500 Startups are ready to participate in ICO, this will bring significant changes to the industry because 500 Startups have not invested in chain-chain companies for a long time.n
nIn addition to the above mentioned Gyft and ChangeCoin, the 500 Startups are still early investors of BTCJam, which have already ceased operations. Chain Chain Enterprise Chain is the only block chain company that is still within the 500 Startups portfolio. (CoinDesk is also in the early investment portfolio, but in 2005 the switch to the embrace of the digital currency group.)n
nHowever, Sigal admitted that he was a relatively inexperienced investor in the field, and he wondered how other venture capital firms that supported ICO explained the investment to their fund holders under other regulatory constraints.n
nHe said: “You have seen, 500 Startups is a very diverse approach, we like to test.” He finally concluded:n
nn”So if there is a way to be involved, I think we will eventually do that, but I do not know what to do.”n

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