Can Initial Coin Offerings (ICOs) replace Venture Capital?

It’s a global debate. Can Initial Coin Offerings (ICOs) replace Venture Capital on an international scale?

In 2016, ICOs raised $96.3m. In 2017, it went up to $4bn. Already in the first month and a half of 2018, the figure stands at just short of a billion dollars.

Proving themselves to not just be a fad, ICOs have demonstrated themselves to be a fully irrefutable and dynamic way of raising funds. But where do venture capitalists stand on them?

This new way of fundraising has divided VCs across the world — some see it as the next step on the evolutionary journey, others view them as a threat to the current staus quo. Could ICOs replace the entire venture capitalise private equity process, or could the two co-exist harmoniously?

Jon Matonis, founder of Bitcoin Foundation, says in order to survive, VCs will have to take on an adapt-or-sink approach — as the ICO train shows no signs of slowing down.

The venture capitalists that are embracing ICOs are making the system work for their operations by implementing certain criteria, which Matonis explains in this video: