Bitcoin Forum

Bitcoin => Project Development => Topic started by: Jae888 on December 29, 2013, 09:30:58 AM



Title: Micro funding platform to allow startups to raise seed capital with Bitcoin
Post by: Jae888 on December 29, 2013, 09:30:58 AM
I think it would be great to see a funding platform where business startups could accept Bitcoin payments from the masses to raise seed capital in exchange for equity in their company.  I would definitely invest in various companies that I thought had a good chance of succeeding if there was a platform like this that existed and I am sure that there would be a number of businesses startups that would try this out.  Thoughts? 


Title: Re: Micro funding platform to allow startups to raise seed capital with Bitcoin
Post by: coinrevo on December 29, 2013, 11:11:41 AM
Bitshares is an attempt at this. AngelList is doing this on their platform for US startups. Problem is there is no such thing as a global company. Each country has their own definition of company. Funding through BTC might be illegal in some countries. I think this makes sense if the capital is going to be used for the Bitcoin ecosystem. I understand Mastercoin has raised capital on the board.


Title: Re: Micro funding platform to allow startups to raise seed capital with Bitcoin
Post by: justusranvier on December 29, 2013, 11:20:36 AM
Problem is there is no such thing as a global company.
Yet.


Title: Re: Micro funding platform to allow startups to raise seed capital with Bitcoin
Post by: coinrevo on December 29, 2013, 12:36:39 PM
Yeah, right. But you will not get to rewrite corporate law anytime soon. Perhaps somebody will establish a cayman island bitcoin company and then you can register online via BTC. But still your local tax authority will have to say something about that.


Title: Re: Micro funding platform to allow startups to raise seed capital with Bitcoin
Post by: justusranvier on December 29, 2013, 09:00:06 PM
But you will not get to rewrite corporate law anytime soon. Perhaps somebody will establish a cayman island bitcoin company and then you can register online via BTC. But still your local tax authority will have to say something about that.
If our software tools don't make it impossible to enforce those laws in practise, they aren't good enough.


Title: Re: Micro funding platform to allow startups to raise seed capital with Bitcoin
Post by: countryfree on December 29, 2013, 10:38:14 PM
No need for a global company. Companies listed on the NYSE or any large exchange get investors from all over the world. But what's the point of investing in BTC besides that it could be anonymous? How is it better than keeping your BTC in your wallet at home?


Title: Re: Micro funding platform to allow startups to raise seed capital with Bitcoin
Post by: Jae888 on December 29, 2013, 11:58:53 PM
Bitshares is an attempt at this. AngelList is doing this on their platform for US startups. Problem is there is no such thing as a global company. Each country has their own definition of company. Funding through BTC might be illegal in some countries. I think this makes sense if the capital is going to be used for the Bitcoin ecosystem. I understand Mastercoin has raised capital on the board.

coinrevo, thank you for the heads up about Bitshares.  I checked them out and what they are doing is fantastic so I will definitely be getting involved.

No need for a global company. Companies listed on the NYSE or any large exchange get investors from all over the world. But what's the point of investing in BTC besides that it could be anonymous? How is it better than keeping your BTC in your wallet at home?

countryfree, one of the problems with investing in companies on the NYSE is that they are already publicly traded by the time most people can invest in them and the opportunities available to get in on the ground floor when they are at the stage where they are looking for seed capital are often prohibitive to all except for those that have over $1,000,000 in assets or make over $200,000 per year (note:  I may be inaccurate with some of the numbers I am quoting....but this is just my general understanding of the scenario in which you already have to be wealthy to have the opportunity to take part in providing seed capital investment opportunities). 

So, if there is an opportunity to take part in seed capital funding through Bitcoin without the usual restrictions, it would make this whole process more inclusive and give more people to opportunity to increase their wealth (while having less to invest to begin with).  This is why I am excited to get involved with Bitshares because they allow this to happen.


Title: Re: Micro funding platform to allow startups to raise seed capital with Bitcoin
Post by: coinrevo on December 30, 2013, 05:05:57 AM
I'm personally sceptical of Bitshares for the reasons mentioned, although I appreciate the work being done there. Say somebody has build a viable business. He can just transfer the business to another BTC account. I don't understand how one can enforce ownership. In a developed country you go to court, and then you get the money. In Bitcoinland there is not much you can do.

If you're in the US you can use AngelList's syndicates now, which means you can effectively invest in startups with 100$. To build this on Bitcoin will be difficult or impossible, when you want integration with the law. To make Bitcoin effective there will be a lot of political work to be done, besides the technical work. Pretending laws don't exist is not at all the right attitude IMO. I'm not sure in how far courts/the legal system can be "replaced" with software. I haven't seen a good theory of how that would work in practise (and I've been involved with this on a practical level).


Title: Re: Micro funding platform to allow startups to raise seed capital with Bitcoin
Post by: justusranvier on December 30, 2013, 05:29:51 AM
If you're in the US you can use AngelList's syndicates now, which means you can effectively invest in startups with 100$. To build this on Bitcoin will be difficult or impossible, when you want integration with the law. To make Bitcoin effective there will be a lot of political work to be done, besides the technical work. Pretending laws don't exist is not at all the right attitude IMO. I'm not sure in how far courts/the legal system can be "replaced" with software. I haven't seen a good theory of how that would work in practise (and I've been involved with this on a practical level).
http://bitcoinism.blogspot.com/2013/12/lex-cryptographia.html