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There is massive bias for VC's to believe they have enormous value that cannot be obtained other ways. This is disruption in real time, disrupting the very peop

There is massive bias for VC's to believe they have enormous value that cannot be obtained other ways. This is disruption in real time, disrupting the very people who believed they themselves are the disrupters, and it's making them very scared. Imagine devoting your life, climbing the ladder, becoming a VC partner, having entrepreneurs begging to speak with you, and seemingly overnight a new model exists that makes you obsolete. Very scary. However, I think VC can stay around as "gold star" supporters who vouch for authenticity of a company before opening up to widespread investment and get some of the tokens in return. Even if this ICO craze dies, I think the cat is out of the bag, and being able to raise funds globally and instantly is simply too good to pass up.

lpolovets 9y ago
I agree that there's a lot of disruption and innovation happening on the capital side. AngelList syndicates were already doing that before ICOs. But the advisory side is not really being disrupted so far, afaik. What I do like about all of the innovations on the capital side is that over time, I think they'll drive inferior/shitty VCs out of business. Most founders would prefer to work with Sequoia to using an ICO or AngelList, but ICOs/AngelList are better than SomeRandomFundWithCrappyAdvice. So the SRFWCAs will go out of business over time, but I think the Sequoias will do just fine.
mathattack 9y ago
The same thing happens to lots of fields. Many types of banking and financial services have become obsolete, or will be. The market makers who manually matched buyers and sellers of stocks are one example, as are the traders in the pits.
mathattack 9y ago
The same thing happens to lots of fields. Many types of banking and financial services have become obsolete, or will be. The market makers who manually matched buyers and sellers of stocks are one example, as are the traders in the pits.

lpolovets 9y ago

I agree that there's a lot of disruption and innovation happening on the capital side. AngelList syndicates were already doing that before ICOs. But the advisory side is not really being disrupted so far, afaik. What I do like about all of the innovations on the capital side is that over time, I think they'll drive inferior/shitty VCs out of business. Most founders would prefer to work with Sequoia to using an ICO or AngelList, but ICOs/AngelList are better than SomeRandomFundWithCrappyAdvice. So the SRFWCAs will go out of business over time, but I think the Sequoias will do just fine.

mathattack 9y ago

The same thing happens to lots of fields. Many types of banking and financial services have become obsolete, or will be. The market makers who manually matched buyers and sellers of stocks are one example, as are the traders in the pits.

mathattack 9y ago