William Mougayar is the author of “The Business Blockchain” and a board advisor to, and investor in, various blockchain projects and startups (See: Disclosures).
Here, Mougayar argues that the traditional venture capital model is being quickly revolutionised by young upstarts working with cryptocurrencies and blockchain tech.
The decentralization effects of blockchain-based cryptocurrencies are hitting the venture capital industry in more ways than one. Whereas the traditional venture capital industry is boring, the crypto-tech industry has become more exciting.
Actually, I see the two models as diametrically opposed: one is a closed market, dominated by command-and-control practices, led by a few rich people on Sand Hill Road. The other is a widely open global market where anyone can play, and where the gains and risks are more evenly distributed.
This has led to a re-thinking of how startups who are operating in the blockchain space can raise money, and it has potential implications that will revamp the relationships that venture capital firms can hope to strike with these startups.
As an investor, advisor or board member, I have been closely associated with a variety of early stage companies that are tackling the innovation explosion around cryptocurrency and blockchain-based models, and have had the fortunate insights of seeing where we might be headed.
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