
Ask HN: How will ICO’s affect YC and other tech investors? - bsvalley
We’re seing the rise of ICO’s which disruptes the way startups raise money. How will it affect companies like YC? Will wealth become evenly distributed among the global population and not only the ‘elite’ people? Anyone can invest in an ICO. Happy to hear your thoughts.
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ig1
Most of the serious ICO's (i.e from companies with product, employees, etc.)
only take money from accredited investors to avoid falling foul of the SEC.

There's also established equity crowd-funding sites (like WeFunder) who've
failed to take-off because individuals generally aren't very good at picking
winners (even most angels don't have great returns).

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companyhen
Only accredited investors in the USA. They don't care as much if I was a
regular investor from somewhere like Switzerland.

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mvid
As to your first question, YC will likely be entirely unaffected because the
money is the least valuable aspect of joining the program. An ICO doesn’t
bring the notoriety and community you get from YC.

As to your second question, it far more broad and open ended, but there
doesn’t seem to be any reason to believe ICOs will bring financial equality to
the world. Ability to invest hasn’t been the hurdle stopping wealth
redistribution. If anything, this will likely result in more currency control
by government, which in turn means more currency control by the global rich.

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bsvalley
How about Demo day at the end of the YC program? When startups pitch their
ideas on stage to a selected crowd of wealthy investors. I think it’s one of
the main benefits of joining such a program. If I were to apply I’d mention
the network as being the main reasons why but let’s honest, how does YC make
millions of dollars since money isn’t what it’s all about? I do see the
network value, but do you really need to join a prestigious MBA to start a
business? For example, Ethereum raised 3700 BTC in the first 12 hours of their
ICO with just a basic HTML page.

In order to invest in a startup (at least in the US), you need to meet the
accredited investor standards. Less than 3% of US households qualify. You need
to earn $200,000/year for the last 2 years.

That’s where I see ICO’s as a way to give everyone a chance.

I just realized I should have added more details to my original question ;)

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mvid
You don't need to have an MBA, and you don't need to join YC. Given that, most
people who don't have an association with a prestige organization will fail.
More than the "most" who will fail even with the association.

Major, serious funding rounds would be picky with who they take money from
anyway. If accredited investor laws were removed in the USA, competent round
seekers would still be looking for people who have the most money, the most
industry connection, the most advisory capability.

Taking money from every Jack and Jill both doesn't include all of that
secondary value, but can be a net negative because you now have people
involved at an early stage that are a distraction, and have invested what is
likely a larger stake of their personal wealth in your venture, which will
have their incentives (safe return, stable financial outlook) not aligning
with yours (spend to grow, take risks).

ICOs so far have just been an end run around regulation, and we saw an
immediate return of all of the dark practices that the regulations are in
place for. It democratizes investment for the general population the same way
Las Vegas does.

