Ca Op — I don’t blame Protocol Labs. They are simply acting in their best economic interest given the conditions in the market. Yet, just because they are a solid team with an interesting project, doesn’t make their ICO a good deal.
VCs would gladly invest in this deal, just not at this valuation and these terms. The only reason these terms are possible is because:
- There are no rules/regulations in place for ICOs to protect investors
- ICOs are skipping accredited investors and going straight to relatively unsophisticated individuals who do limited diligence and don’t make decisions based on valuation
- We aren’t far enough along for people to realize that the vast majority of these projects will either fail outright or succeed and still be bad investments because of the ICO valuation
Theranos has raised $680m in equity capital over a 13 year period. They have a board of directors. Their shareholders, who are accredited, professional investors, have minority rights. Their management team likely has options and doesn’t get everything up front.
As Stefano mentioned, Filecoin could raise what Theranos raised over 13 years in a couple months, with far less strings attached.