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Venture Capital in the Rise of Crypto Economy: Problems and Prospects

Lin Lin & Dominika Nestarcova

Berkeley Business Law Journal2019article
ABDC B
Weight
0.45

Abstract

The rise of the crypto economy brings promises and perils to the venture capital industry. Distributed ledger technologies offer new investment opportunities to venture capitalists (VCs). Traditional VCs are gradually diversifying their portfolios to invest in crypto-assets and blockchain technology projects, as well as launching crypto-centric funds. Simultaneously, venture capital funds are developing various hybrid financing models to adopt and imitate the fundraising mechanism of initial coin offerings. However, the polymorphous and evolving features of crypto-assets also introduce new risks to the venture capital market. The paper therefore examines the emerging models in the venture capital crypto landscape, identifies the new risks, and examines the current regulatory and contractual solutions. The paper also proposes recommendations for the venture capital crypto landscape going forward, including heightened regulations on crypto-centric funds and fund managers.

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Cite this paper

@article{lin2019,
  title        = {{Venture Capital in the Rise of Crypto Economy: Problems and Prospects}},
  author       = {Lin Lin & Dominika Nestarcova},
  journal      = {Berkeley Business Law Journal},
  year         = {2019},
}

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Venture Capital in the Rise of Crypto Economy: Problems and Prospects

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Evidence weight

0.45

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.26 × 0.4 = 0.10
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.