{"id":12101,"date":"2022-07-08T14:29:14","date_gmt":"2022-07-08T14:29:14","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/the-risks-and-benefits-of-vcs-for-crypto-communities-cointelegraph-magazine\/"},"modified":"2022-07-08T14:29:27","modified_gmt":"2022-07-08T14:29:27","slug":"the-risks-and-benefits-of-vcs-for-crypto-communities-cointelegraph-magazine","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/the-risks-and-benefits-of-vcs-for-crypto-communities-cointelegraph-magazine\/","title":{"rendered":"The risks and benefits of VCs for crypto communities \u2013 Cointelegraph Magazine"},"content":{"rendered":"
Traditional venture capital funds drive valuations through multiple funding rounds. Startups aim for initial public offerings or other exits. Then the sharemarket decides upon a more realistic valuation.\u00a0<\/strong><\/p>\n But in cryptoland, tokens introduce market capitalization while a company is being built.<\/p>\n This means there are a lot of competing interests and agendas. 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, while speculators trade 24\/7 and the media circles.<\/p>\n So, how do founding teams get the balance right between the needs and wants of the VCs and what\u2019s best for the community? Are the interests of VC funds aligned with the interests of token holders?<\/p>\n \u00a0<\/strong><\/p>\n