The risks and benefits of VCs for crypto communities – Cointelegraph Magazine
— Investors, Funding, Crypto, Web3, Communities, Cointelegraph, Risks, Magazine, Community, Early — 1 min read
Token sales for Web3 startups can be the bastard child of a personality cult leader founder and a bunch of VCs raised by a group of Discord-dwelling degens manning a DAO. Traditional venture capital funds drive valuations through multiple funding rounds. But in cryptoland, tokens introduce market capitalization while a company is being built. This means there are a lot of competing interests and agendas. How do founding teams get the balance right between the needs and wants of the VCs and what’s best for the community? Are the interests of VC funds aligned with the interest of token holders? Even VCs were LUNAtics, even though some funds made a killing, some funds that trade complex financial products for a living made a Source