4 ms·
> So we have to start paying people in actual shares if we want to give equity This is also a big gamble if you're given shares in a non-public company. You pa
by acchow 9y ago
> So we have to start paying people in actual shares if we want to give equity
This is also a big gamble if you're given shares in a non-public company. You pay taxes on these shares at vesting - not only have you reduced your liquidity until IPO/exit, but these shares could end up being worth nothing if the company fails.
- exelius 9y agoThat's true if the system continues to work as it does today, yes. But I think the entire model of venture finance is changing towards crypto anyway, making most of these specific points moot. Crypto assets will have different regulations in some form; so I think we should look to shape regulations around cryptocurrency rather than try to cling to an outdated funding model and its associated tax dodges. Does anyone have data on the number/size of round A funding events vs ICO funding? I have a suspicion we're seeing a transfer from one into the other.
- imh 9y agoIf this is any indication, traditional venture capital seems to be doing pretty well: https://www.crunchbase.com/lists/recent-funding-rounds/f535c118-e157-443a-bb64-46bff7dfbe40/funding_rounds https://www.crunchbase.com/lists/recent-funding-rounds/f535c... And those are mostly just rounds raised today.