What are the differences between venture capital and ICOs?

What are the differences between venture capital and ICOs?

Venture capital involves investing in startups for equity, while ICOs raise funds through token sales without giving equity.

Which one is riskier for investors?

ICOs are generally considered riskier due to less regulation and the potential for scams, while venture capital is more established.

Can you explain how the funding process works in both cases?

In venture capital, investors provide funds in exchange for equity and often take an active role in the company. In ICOs, funds are raised by selling tokens, which may or may not have utility in the project.

What are some advantages of using ICOs over venture capital?

ICOs can offer faster fundraising, access to a global investor base, and less dilution of ownership compared to venture capital.

Are there any notable examples of successful ICOs?

Yes, notable examples include Ethereum and Binance Coin, both of which raised significant funds through ICOs and have grown substantially.