ICO VS. VC — The Battle Of The Acronyms

Jeff Bussgang writing for (I’m so sorry) HuffPo:

A company that can successfully raise money in an ICO may never need venture capital again. Most of those companies will still require seed capital to assemble their team and fund a year or two of initial development and experiments.
Perhaps, when things settle down a bit more, those companies will even raise series A capital from traditional institutional sources to expand the product features, beef up the operations team more fully and make progress in finding initial product-market fit.
Early stage entrepreneurs will also still likely value experienced advice on company-building from seasoned venture capitalists. But once entrepreneurs have their initial team and product in place, a few smart advisors around the table and the social proof required to attract great talent, why would they raise additional dilutive equity capital if they can raise non-dilutive capital through the sale of tokens?

I’m wary of ICOs. I know that’s not a cool perspective, but I have very little faith in them from an investor’s perspective, and I wouldn’t execute an ICO myself. VC funding isn’t perfect.

But it’s still a little more reliable than an unlikely trend that hasn’t demonstrated long-term returns.

Or maybe I’m just old fashioned.