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Week 6 [19-25.11.18] Cryptocurrency instead of VC for startups


What do you think about launching own cryptocurrency as a investment capital instead of  Venture Capitalist?  Please watch this short TED talk about successful women who started her startup with interesting capital aproach.



1) Why do you think VC, turn her down at the begining?
2) Do you think cryptocurrency is a good option for investment capital for a startup?
3) Would you decide for such a brave step ?

Comments

Actually, I like the overall idea of cryptocurrencies. The currency that is not regulated by any country, government or organization. Finally, we are valuing what was ignored for a long time. By that I mean the computing power. Actually, I would like many more things converted into currency. For example, time. Imagine, if we had a way to buy some time if you like, or sell, if you have some extra and not willing to do anything.

About creating my own cryptocurrency, perhaps this topic would require tons of studying and research since I am not the person who will dive in aimlessly with only hopes for luck in something. I want to be certain.
Filip Sawicki said…
Cryptocurrency is high risk high reward type of investment. No one really knew up until know how this market behaves and whether it’s even profitable. Many people got rich solely by sheer luck or playing on people’s naivety and lack of technological knowledge. Just recently VC started investing into blockchain as they gained experience from poor investments mistakes. I think that cryptocurrency is a poor option for VC as market is now flooded with many solutions, however blockchain technology implemented in various businesses may be very profitable in the future.
Wojtek Protasik said…
I do like the idea and I've heard of it before. I think it's a step ahead. Many entrepreneurs can start better and grow faster. I know many people are not sure about cryptocurrency in general yet. However, the idea of ICO is not focusing on the reliability of the crypto currencies, it is a new way of funding new businesses.

With todays open sourced frameworks like Solidity it doesn't take a genius to create your own ICO in about 30 minutes.
Unknown said…
Thanks for your reply ! Actually time as a currency is very interesting idea , if I remember well there was a movie about it called : "In Time" you should check it out :) About creating own cryptocurrency, you're right I have the same thoughts.
You're right , cryptocurrency is a very risky investment, barerly predictable. I would probably choose VC than blockchain for finansing my startup. VC're more stable.
Cool, I have heard about it only from Silicon Valley show which thought us that Crypto currencies are very unpredicatble, but yes I think it is rising new way of fundings. Good to know about frameworks, maybe one day I'll try it :)
I think that Cryptocurrency is a lot like AI/Big data stuff. Most companies that are hyped for it does not even know what is it or how to use it. They like to use it in their project for no particular reason. It's like those gnomes from South Park:
1. Use Cryptocurrency in your project/company.
2. ???
3. Profit.
Sorry, not my cup of tea :(
I think the biggest concern is that what is happening to crytocurrency lately. Loosing it value faster then lamborghini just to sky rocket next day. Also not everyone would like to invest with market shares. I just think its too ustable and too risky to invest with it as aready you could invest in cryptocurrency no with it. But for that im not really into this theme so can't say much more :/
Unknown said…
I don't know - they may not have seen any future in them. It's hard to tell me. I don't know about these topics.

Currently, I think not, because the cryptocurrency is not growing so fast (I think). But this is a question of analysis, because there may be some that are growing fast and it is worth investing in them.

I think so - I like taking risks. But I would have to think about it.

It's a good thing to have a real capital before starting to have virtual capital =3. But in all seriousness i don't think that investing in a crytpo is a good way to spend your money, unless you have your own independent crypto network that you can be sure about. I would not take a "brave" (rather stupid) step to lose all my money because i trusted some guy or gal.
Unknown said…
I guess business she started seemed like a pretty risky business to invest in.
Well, it's one of the good ideas to get funded when starting your own startup. I think the idea of cryptocurrencies getting into venture capital is a promising idea but it also raises lots of concerns surrounding its profitable value. As it was said in comments below all the hype surrounding crypto money and blockchain started because of someone's success in their business which involved using these technologies. But most still don't understand that this approach still in its experimental stage.
If I wanted to start my own company I would probably evaluate this option but I think I would spend lots of time trying to analyze the current market state and deciding whether I should go for it.
Unknown said…
1. I think that venture capitalist who has talked with her, have been afraid that her company would have become very successful on the market and could have become real competitor for or even overcome companies that he had already invested money in.
2. From the startup perspective, it is really attractive way to raise funds as it enables them to acquire financing without paying middleman fees and bypassing, strictly regulated by authorities, capital raising procedures. From the investors point of view it seems to be quite risky for few reasons. First, cryptocurrencies exchange rates are often fluctuating quite significantly and secondly due to the fact that ICO procedure is not controlled by regulatory authorities, which is the case of IPO, it can be used for making scams or other fraudulent actions.
3. I would not take a risk of investing my money in startups via ICO for the reasons which I have mentioned above.
1) Why do you think VC, turn her down at the beginning?
Maybe because it's risky. I believe the cryptocurrencies isn't perfect like we think. No regulation for the sector is a value but a risk as well. I guess VC may think me both way: it's too risky, and we can lose market control because of cryptocurrency sector growing up.
2) Do you think a cryptocurrency is a good option for investment capital for a startup?
I think yes, but I don't think about cryptocurrency as a fantastic thing. Cryptocurrencies transactions are very costly. One bitcoin may use more power energy than one house monthly. Cryptocurrency transactions are very 'heavy' and tool many many cloud spaces. If we dynamically would change our transaction into cryptocurrency transaction, I suppose we couldn't afford this.
3) Would you decide for such a brave step ?
I am not sure if it's a brave step. I think everybody who decided to start with his own business is a person who did a bold step.
Unknown said…
I believe that VC turned her down because her startup wasn’t profitable enough on VC scale. As she said VC is looking for startups which could turned into billion dollar company instead her which potential were just 50-60 million.

Answering your second question, I believe that investing in start-up money into cryptocurrencies is a bad idea. However presenter were talking about that they created an ICO to invest in their company.

I didn’t think that to decide on ICO funding is a brave step, at least in my opinion risc is similar that when you got funded by Venture Capital. And I believe if I will start own starrt up I also will laverage ICO as a funding for my company.
While the concept sounds interesting for sure and the prospect of a "more democratic" capital sounds nice. I really would love some further reading or video on this topic. As I am simply not deep enough into this to even get half of the stuff she said.
I can only guess, but I think that VC turn her down because they haven’t seen any profit in it. And when they had better offer, that was more reliable, they chose the second one.
It’s really interesting question. Cryptocurrency can be an amazing option for investment capital, but you have to face the possibility of bankruptcy.
Deciding for that step depends on a lot of things. How cryptocurrency I would like to invest in looks onto the market, in how big despair I would be and probably few more things.
I believe that cryptocurrencies to the present degree are better than VR. Blockchain technology is a technology that is just beginning to develop.

I think that cryptocurrency is a good option for investment capital for a startup. I've been interested in the crypto market for about 4 years and I've seen a lot of cryptocurrencies and ICO. Of course, sometimes the projects were falling down quickly, others were growing on large projects - as in any business.

Yes, I think I would decide for such a brave step, because I am a really fan of blockchain technology.
1. It isn't explained in the video. I would say maybe he saw too much risk in this invesment.

2. Well, cryptocurrencies seem a bit tricky to me. I might lack knowledge about this topic though. I think it is just less stable and maybe more risky than normal way of funding. However, it is sometimes hard fot start ups to get their funds so why not risk it?

3. It would depend on my situation. If I couldn't get money for my project in a different way I would probably try an ICO.
Ahmed Elsawi said…
1) Why do you think VC, turn her down at the beginning?

I think because of the idea not clear and risk.
..................................................................................................
2) Do you think a cryptocurrency is a good option for investment capital for a startup?

Actually cryptocurrency, it's until now little bit complex or without clear rules such as "Bitcoin" because I'm tried it before and nothing exists to me from it.
So.!
..................................................................................................
3) Would you decide for such a brave step?

Actually, I do not prefer to have a partner " Venture Capitalist" in general, I do not know in the future is it possible to change the opinion.
Cryptocurrency and everything that is connected with it very unstably. Why such problems? And all this plot. A plot between people who are afraid. Everything needs to be considered. This absolutely new. And all others, new to people. On it there is a fear. But is not necessary so strongly are afraid because it won attention, and the whole world about it heard. I think, it is worth investing some bag in one of cryptocurrencies and to wait. But it is possible that the cryptocurrency will not be able to replace money. Cryptocurrencies limited quantity. And each of us begins to use it for payment something. Here now the real rise in price of cryptocurrency begins. Whole world waiting.

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