Potential for Venture Capitalists in an Initial Coin Offering Market


Book Description

With the development of the Blockchain technology a new alternative of funding for start-ups was introduced to the market: Initial Coin Offerings (ICOs). At its core, an ICO is a fundraising mechanism, which facilitates the issuance of digital coins to a crowd of investors. Two prominent projects that were funded via ICO were Ripple in 2013 and Ethereum in 2015, the emergance of ICOs on a big scale however only started taking place in 2017. The hype that ICOs experienced in 2017 was ended on the 17. December of the same year, with the collapse of the coin prices. Since then, the ICO landscape has experienced deep reaching changes, not least due to regulations. One example being the FINMA guideline of February 2018, on how to legally handle ICOs. As a result, ICOs are starting to represent a widely accepted alternative funding method to venture capital. Therefore, an impact or causality between the two funding methods is possible. This potential interplay is the subject of this paper, for which cases conducting ICOs were examined in detail in a first step. The qualitative analysis resulted in four observations: Firstly, the advantage of utility tokens for start-ups offering a business model based on user interaction. Secondly, the benefit of the liquidity of the ICO market for investors. Thirdly, the fact that start-ups need more support than just fundraising and lastly the short time to market of ICOs, which results in a competitive advantage. In a second step these observations were used to form four propositions for venture capitalists (VCs) to participate in an ICO environment: firstly, VCs investing into utility coins can leverage their resources to increase user interaction on the platform and thus secure their investment. Secondly, a VC can contribute to the ICO market with value-add. Thirdly, the liquidity of ICO markets opens up potential for a VC to offer a more diversified portfolio of investments. Lastly, ICOs can sh.




Initial Coin Offerings


Book Description

This thesis introduces a newly emerged funding method based on blockchain technology, namely, the Initial Coin Offering (ICO), and examines the impact of regulations on this funding method. Drawing on both financial and innovation theories, the thesis argues that regulations negatively impact the ICO market at a macro level in its early stage of development. Using a panel analysis of hand-collected cross-national data from 2013 to 2017, the findings of this thesis are consistent with the hypotheses. Overall, this thesis provides an important implication for both policymakers and regulators, indicating the need for a "balance" between investor protection and market development when regulating financial activities that are driven by emerging technology.




New Frontiers In Entrepreneurial Finance Research


Book Description

This book provides an updated view of new trends in entrepreneurial finance, with the aim of guiding academics and non-academics alike that want to gain a deeper understanding of this field.It collects recent contributions from scholars from all over the world. Each chapter provides new empirical or theoretical evidence on fundamental issues related to entrepreneurial finance, including business angels, crowdfunding, Initial Coin Offerings, Mini bonds, public support and more. Besides reviewing the recent trends in the field, the book also highlights new avenues for research, and implications for practitioners.




Handbook of Corporate Finance


Book Description

Judging by the sheer number of papers reviewed in this Handbook, the empirical analysis of firms’ financing and investment decisions—empirical corporate finance—has become a dominant field in financial economics. The growing interest in everything “corporate is fueled by a healthy combination of fundamental theoretical developments and recent widespread access to large transactional data bases. A less scientific—but nevertheless important—source of inspiration is a growing awareness of the important social implications of corporate behavior and governance. This Handbook takes stock of the main empirical findings to date across an unprecedented spectrum of corporate finance issues, ranging from econometric methodology, to raising capital and capital structure choice, and to managerial incentives and corporate investment behavior. The surveys are written by leading empirical researchers that remain active in their respective areas of interest. With few exceptions, the writing style makes the chapters accessible to industry practitioners. For doctoral students and seasoned academics, the surveys offer dense roadmaps into the empirical research landscape and provide suggestions for future work. *The Handbooks in Finance series offers a broad group of outstanding volumes in various areas of finance *Each individual volume in the series should present an accurate self-contained survey of a sub-field of finance *The series is international in scope with contributions from field leaders the world over




Blockchain Economics and Financial Market Innovation


Book Description

This book discusses various aspects of blockchains in economic systems and investment strategies in crypto markets. It first addresses the topic from a conceptual and theoretical point of view, and then analyzes it from an assessment and investment angle. Further, it examines the opportunities and limitations of the taxation of crypto currency, as well as the political implications, such as regulation of speculation with crypto currencies. The book is intended for academicians and students in the fields of economics and finance.




Cryptofinance and Mechanisms of Exchange


Book Description

This book describes how the rapid advancement in encryption and network computing gave birth to new tools and products that have influenced the local and global economy alike. One recent and notable example is the emergence of virtual currencies (such as Bitcoin) also known as cryptocurrencies. Virtual currencies introduced a fundamental transformation that affected the way goods, services and assets are exchanged. As a result of its distributed ledgers based on blockchain, cryptocurrencies not only offer some unique advantages to the economy, investors, and consumers, but also pose considerable risks to users and challenges for regulators when fitting the new technology into the old legal framework. The core of this proposed book is to present and discuss the evidence on financial asset capabilities of virtual currencies. The contributors of this volume analyze several interesting and timely issues such as the particularities of virtual currencies and their statistical characteristics; the diversification benefits of virtual currencies; the behavior and dependence structure between virtual currencies and the financial markets; the economic implications of virtual currencies, their effects, their price risk, and contagion spillovers in a unified and comprehensive framework; the future of virtual currencies and their distributed ledgers technology.




Security and Usability


Book Description

Human factors and usability issues have traditionally played a limited role in security research and secure systems development. Security experts have largely ignored usability issues--both because they often failed to recognize the importance of human factors and because they lacked the expertise to address them. But there is a growing recognition that today's security problems can be solved only by addressing issues of usability and human factors. Increasingly, well-publicized security breaches are attributed to human errors that might have been prevented through more usable software. Indeed, the world's future cyber-security depends upon the deployment of security technology that can be broadly used by untrained computer users. Still, many people believe there is an inherent tradeoff between computer security and usability. It's true that a computer without passwords is usable, but not very secure. A computer that makes you authenticate every five minutes with a password and a fresh drop of blood might be very secure, but nobody would use it. Clearly, people need computers, and if they can't use one that's secure, they'll use one that isn't. Unfortunately, unsecured systems aren't usable for long, either. They get hacked, compromised, and otherwise rendered useless. There is increasing agreement that we need to design secure systems that people can actually use, but less agreement about how to reach this goal. Security & Usability is the first book-length work describing the current state of the art in this emerging field. Edited by security experts Dr. Lorrie Faith Cranor and Dr. Simson Garfinkel, and authored by cutting-edge security and human-computerinteraction (HCI) researchers world-wide, this volume is expected to become both a classic reference and an inspiration for future research. Security & Usability groups 34 essays into six parts: Realigning Usability and Security---with careful attention to user-centered design principles, security and usability can be synergistic. Authentication Mechanisms-- techniques for identifying and authenticating computer users. Secure Systems--how system software can deliver or destroy a secure user experience. Privacy and Anonymity Systems--methods for allowing people to control the release of personal information. Commercializing Usability: The Vendor Perspective--specific experiences of security and software vendors (e.g.,IBM, Microsoft, Lotus, Firefox, and Zone Labs) in addressing usability. The Classics--groundbreaking papers that sparked the field of security and usability. This book is expected to start an avalanche of discussion, new ideas, and further advances in this important field.




An Introduction to Cryptocurrencies


Book Description

The Crypto Market Ecosystem has emerged as the most profound application of blockchain technology in finance. This textbook adopts an integrated approach, linking traditional functions of the current financial system (payments, traded assets, fundraising, regulation) with the respective functions in the crypto market, in order to facilitate the reader in their understanding of how this new ecosystem works. The book walks the reader through the main features of the blockchain technology, the definitions, classifications, and distinct characteristics of cryptocurrencies and tokens, how these are evaluated, how funds are raised in the cryptocurrency ecosystem (ICOs), and what the main regulatory approaches are. The authors have compiled more than 100 sources from different sub-fields of economics, finance, and regulation to create a coherent textbook that provides the reader with a clear and easily understandable picture of the new world of encrypted finance and its applications. The book is primarily aimed at business and finance students, who already have an understanding of the basic principles of how the financial system works, but also targets a more general readership, by virtue of its broader scope and engaging and accessible tone.




The Palgrave Handbook of Technological Finance


Book Description

This handbook provides the first comprehensive overview of the fast-evolving alternative finance space and makes a timely and in-depth contribution to the literature in this area. Bringing together expert contributions in the field from both practitioners and academics, in one of the most dynamic parts of the financial sector, it provides a solid reference for this exciting discipline. Divided into six parts, Section 1 presents a high-level overview of the technologically-enabled finance space. It also offers a historical perspective on technological finance models and outlines different business models. Section 2 analyses digital currencies including guides to bitcoins, other cryptocurrencies, and blockchains. Section 3 addresses alternative payment systems such as digital money and asset tokenization. Section 4 deals with crowdfunding models from both a theoretical perspective and from a regulatory perspective. Section 5 discusses data-driven business models and includes a discussion of neural networks and deep learning. Finally, Section 6 discusses welfare implications of the technological finance revolution. This collection highlights the most current developments to date and the state-of-the-art in alternative finance, while also indicating areas of further potential. Acting as a roadmap for future research in this innovative and promising area of finance, this handbook is a solid reference work for academics and students whilst also appealing to industry practitioners, businesses and policy-makers.