Hey! Mister can you spare a dime?
My worries about the state of ICO universe
It may be that I am just getting old and grumpy, it could even be the effects of the pain killers but I am getting more and more worried about the insane amounts being raised by the recent spate of ICOs
The old fashioned ways of raising capital involved pitching to some rich guys or working your asses off until you had made enough to take the next step in building your business. And we all hated the idea of the former because it meant giving up control of our baby, and the latter because we were young and impatient.
But do you remember the Dot Com boom where rich guys were bamboozled by the myth of “the new economy” and handed suitcases of cash to young guys in shorts and tees who spent 50% of the loot on plush offices and ping pong tables and generally mismanaged the rest?
What used to happen was that your investor offered valuable guidance in building your company based on their experience of, well, becoming rich. Becoming rich involves controlling costs, curtailing extravagances and thinking through options to the point of obsession.
If you couldn’t get that rich investor you probably needed to improve your marketing communications and you learnt those skills along with the rest while struggling to pay the bills, persuade your spouse and parents that you don’t want a “proper job” and build a product strategy. Being hungry makes you plan quite hard.
So, in this current wave of ICO’s we have a load of people, some of them so insanely smart and well educated that it makes me jealous, others who raised a few millions on a pipe dream who suddenly have more than enough resources to do what they want but very few of them with experience of running a decent organisation. And many have no battle hardened outside investors to hold them back…..