The following is a guest post from Max Kordek, the cofounder and president of the Lisk Foundation, the not-for-profit arm of blockchain application development platform Lisk.
On ICO’s/token sales:
How does this method of capital raising differ from VC or traditional forms?
In comparison to traditional finance, ICOs (or token sales) differentiate themselves from traditional financing by their speed and efficiency. They enable companies to bypass third parties and directly attract willing individuals wishing to participate in the company’s crowdfunding initiative. To date approximately $1.7 billion USD has been raised through this novel funding model, with more than $500 million USD coming in July alone.
In the long and arduous process of traditional capital raising by accelerators and VC models, start-ups find themselves in a hamster wheel of building a proof of concept (POC) and then urgently trying to find the next client, or attempting to survive while the wheels of large corporates churn.
With the introduction of token sales, entrepreneurs are now watching as projects promptly receive funding, enabling them to begin the development of bringing their idea into fruition instantaneously.
[caption id="attachment_44462" align="alignright" width="300"]
Max Kordek is a tech entrepreneur and globally recognised blockchain visionary. He is cofounder and president of the Lisk Foundation, the not-for-profit arm of blockchain application platform Lisk, based in Zug, Switzerland. Mr. Kordek is also the director of the Lightcurve GmbH, a rapidly expanding blockchain consultancy.
He immersed himself in the global startup community from a young age, beginning at just 14. Over the past four years, Mr. Kordek has become an active participant in the blockchain and cryptocurrency industry, gaining invaluable knowledge of bitcoin and altcoins. With a clear vision, the necessary motivation and the know-how, Max partnered with Oliver Beddows to co-found Lisk in 2016 and has lead the organization to where it is today.
Contributors
