{"id":25274,"date":"2016-03-25T22:46:59","date_gmt":"2016-03-25T22:46:59","guid":{"rendered":"http:\/\/ci027cfe6ab00d2697"},"modified":"2016-03-25T22:46:59","modified_gmt":"2016-03-25T22:46:59","slug":"boost-vc-ceo-adam-draper-bullish-on-blockchain-based-crowd-equity-1458928019","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/boost-vc-ceo-adam-draper-bullish-on-blockchain-based-crowd-equity-1458928019","title":{"rendered":"Boost VC CEO Adam Draper Bullish on Blockchain-Based Crowd Equity"},"content":{"rendered":"
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There are few people as well-equipped to comment on the concept of blockchain<\/a>-based crowd equity<\/a> as Boost VC<\/a> CEO Adam Draper<\/a>. In addition to his involvement with the long list of blockchain-related investments made at Boost VC, Draper also launched BoostFunder<\/a>, which he says was the first crowdfunding-for-equity platform.<\/p>\n

Draper recently shared some of his thoughts on blockchain-based crowd equity on an episode<\/a> of the Bitcoin.com Podcast<\/a>. Initially, the venture capitalist stated:<\/p>\n

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\u201cI think we\u2019re at this sort of crossroads with the crowdfunding of the coin-based system. It\u2019s going to work because it\u2019s efficient, you can keep track of it, and the ledger clears it automatically. There are a lot of things that are better about that system.\u201d <\/p>\n<\/blockquote>\n

Draper went on to discuss the need for regulatory approval of this type of system, the effects of the JOBS Act<\/a>, and the need for this type of fundraising system to have time to develop and grow over time.<\/p>\n

Regulatory Approval Is Needed for Mass Adoption<\/strong><\/p>\n

The main issue Draper sees with blockchain-based crowd-equity platforms is the lack of regulatory approval. Draper explained, \u201cThe problem is right now that you need a regulatory body to adopt it. Otherwise, it\u2019s just not going to get mass approval.\u201d<\/p>\n

While many early Bitcoin and blockchain adopters do not like the idea of asking for regulatory approval, Draper said, \u201cIt\u2019s going to be really, really important for the system to have that regulatory approval. You\u2019ll never go completely around the government.\u201d<\/p>\n

Draper then added that this need for regulatory clarity is not something he personally desires, but rather the simple reality of the situation. He noted:<\/p>\n

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\u201cAnd I don\u2019t love saying that \u2012 for the record. I also see the regulation as a barrier to entry. To get through that regulatory approval \u2012 that\u2019s something that a lot of startups can\u2019t get through. Really, regulation is an opportunity for a lot of people.\u201d <\/p>\n<\/blockquote>\n

As Draper insinuated, the concept of regulatory capture<\/a> is quite attractive to many businesses.<\/p>\n

Effects of the JOBS Act<\/strong><\/p>\n

The JOBS Act is expected to have a huge impact on the crowdfunded-equity industry. In fact, Draper described one aspect of the venture capitalist business that has already been altered by this legislation:<\/p>\n

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\u201cIt\u2019s really interesting. We\u2019re actually seeing this in the last two or three weeks \u2012 this never happened before \u2012 but if you already filed with the SEC<\/a>, other funds have actually already announced that they\u2019re fundraising. Not that they closed a fund, but that they\u2019re actually in the process of fundraising, which never happened before the JOBS Act.\u201d <\/p>\n<\/blockquote>\n

Draper also shared his own opinion on this new phenomenon:<\/p>\n

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\u201cIt\u2019s an exciting thing. It allows more people to hear about it, it\u2019s less of a private thing, and it helps the fund. It\u2019s a lot of awareness. You drum up a lot of excitement for it. The solicitation thing is just such an obvious rule to make it a little better. It was so restrictive before.\u201d <\/p>\n<\/blockquote>\n

Although the JOBS Act has weakened restrictions on how people can raise funds over the Internet, exactly how this legislation will affect blockchain-based systems remains unclear. At the end of the day, the vision of allowing some kids in a garage<\/a> to issue stock in their new startup as a colored coin<\/a> is not quite here yet.<\/p>\n

Crowdfunded Equity Needs Time to Grow<\/strong><\/p>\n

As for the future of crowdfunded equity, Draper stated, \u201cI still think there\u2019s an evolution that\u2019s happening; it takes time.\u201d<\/p>\n

For now, Draper claims the venture capitalist stills holds a lot of the power and value in the current fundraising system. Having said that, the Boost VC CEO also talked about how raising money on a crowdfunding platform, such as AngelList<\/a> or Crowdfunder<\/a>, could provide startups with a bit of extra reach. He added, \u201cBut it\u2019s really just add-on right now \u2012 just as far as the process that works to fundraise.\u201d<\/p>\n

In his final thoughts on crowdfunded equity, Draper stated:<\/p>\n

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\u201cThere\u2019s going to be a really interesting experiment that probably happens in the next year that brings [crowdfunded equity] to life, so I think it\u2019s going to be awesome. I love disruption in every industry. If my own industry gets disrupted, I just hope I\u2019m on the side of it that\u2019s winning.\u201d <\/p>\n<\/blockquote>\n

Kyle Torpey is a freelance journalist who has been following Bitcoin since 2011. His work has been featured on VICE Motherboard, Business Insider, NASDAQ, RT\u2019s Keiser Report and many other media outlets. You can follow <\/em>@kyletorpey<\/a><\/em>on Twitter.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

There are few people as well-equipped to comment on the concept of blockchain-based crowd equity as Boost VC CEO Adam Draper. In addition to his involvement with the long list of blockchain-related investments made at Boost VC, Draper also launched BoostFunder, which he says was the first crowdfunding-for-equity platform. Draper recently shared some of his […]<\/p>\n","protected":false},"author":3445,"featured_media":25275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[353],"class_list":{"0":"post-25274","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-tim-draper"},"author_data":{"id":3445,"name":"Kyle Torpey","nicename":"kyle-torpey","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/kyle-torpey-promo-image-96x96.jpg"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/boost-vc-ceo-adam-draper-bullish-on-blockchain-based-crowd-equity.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/25274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3445"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=25274"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/25274\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/25275"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=25274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=25274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=25274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}