Interesting read and approach to keeping the founding team incentivised throughout the entire development.
Coming from the ‘traditional’ startup accelerator/investment space this makes a lot of sense.
What do you guys think?
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Fully agree with the idea that a startup doesn’t need millions and millions of dollars before even beginning work on the project. It’s asinine to think that we’ve reached this point, and the article says it rightfully so.
No startup should ever need such an obscene amount of money from the get go. The way it should be is that you work hard, you get results, you get funded to continue on said results.
Article is right imo.
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Definitely agree.
ICOs are such a powerful tool for startups and new ventures, finally equalising the power differential VCs traditionally had over them.
However I do feel the pendulum has swung very far to the other side now and needs to be centred if we’re to have some longevity to the legitimacy of ICOs as a fundraising tool.
I think ultimately we’ll see the coming together of more traditional control (DAICO’s, accelerators as an example) and the global reach/massive distribution potential of ICOs.
What was most interesting in the article for me though were the points made around motivation.
It’s damn hard to build a startup. One of the hardest things you can ever do. If you have all your cash upfront it’s highly unlikely you’ll have the motivation to push through all the challenges and set backs.
The founders’ exit strategy must be aligned to those of their investors and the greater ecosystem. There shouldn’t be a reward for an unbuilt product.
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