The Bitcoin and blockchain sector heavily relies on investments from VCs. But as it turns out, the venture capital approach can cause quite a few issues for companies as well. There is a right and wrong approach to dealing with VC funding when push comes to shove. Enterprises taking the wrong approach will find themselves at a significant disadvantage. In the end, it all boils down to whether or not the entrepreneurs in question can be efficient at their job. It’s hard to grasp the concept of efficient entrepreneurship , and securing funding plays a key role in the process. That said, it is not the only driving factor by any means. VCs Are Optional To Achieve Success In fact, dealing with VC funding can be more of a curse than a blessing. Raising a lot of money is needed in the early stages, but it can also create a false sense of security. In fact, a company raising US$50m won’t necessarily do better than a startup securing US$1m. Companies who raise a lot of money at an early stage deal with high expectations, and they usually struggle to deliver. TechCrunch put together a comprehensive list of companies who are overly successful – and less successful – at raising VC funding. While publicly-traded startups seem to be doing quite well if they can survive for an extended period, some of them may have already fallen apart by then. The number of Bitcoin companies going public is very limited, for now, but it is a trend to keep in mind as well. Given the recent list of ICOs which raised a lot of money in the cryptocurrency industry, it looks like steering away from VCs is becoming the new norm. That being said, crowdfunding such projects is always the best […]
