Tokenizing VC’s

Tezos founders at Money 20/20 after the governance crisis
  1. The typical regular work at board meetings involves things like agreeing to an annual budget, agreeing stock option allocation, discussing major initiatives, helping out in executive hiring
  2. The work involves a lot of conflict such as company not hitting its targets, personal compensation differences
  3. But the majority of the conflict is founder-to-founder conflict which includes tensions such as different risk expectations founders have with each other, disagreement over roles and founders trying to fire other co-founders
Aragon Platform for governance

How can cryptotoken teams address founder-to-founder conflict?

The founders cannot have a vlog session and share their conflict and pain if they are having a huge fight amidst themselves. They would be uncomfortable with revealing such things publicly for everyone to see as they rightly should be. Even if they did reveal their conflict, what would we investors be able to do with that knowledge? We cannot vote on who’s right with our limited understanding of their personal problems. We cannot help heal that conflict or give a better direction for the founders. However, investors and VC’s excel at this through repeatedly helping solve these types of conflicts through years.

Governance should be part of the token sale

Lot of teams raise money from the market directly through an ICO without getting investment from VC’s. However, retail investors should invest only if these teams had a governance model properly defined from day 1. Backing of a VC implies that the investor is deeply invested in the company and will help the team through their entrepreneurial pursuit.

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