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

Berkeley Business Law Journal, Vol. 16, No. 2, 2019

NUS Law Working Paper No. 2019/003

NUS Centre for Banking & Finance Law Working Paper 19/01

47 Pages Posted: 21 Feb 2019 Last revised: 27 Feb 2019

See all articles by Lin Lin

Lin Lin

National University of Singapore (NUS) - Faculty of Law

Dominika Nestarcova

National University of Singapore (NUS)

Date Written: February 21, 2019

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.

Keywords: Venture capital, Crypto, blockchain, token, funds

Suggested Citation

Lin, Lin and Nestarcova, Dominika, Venture Capital in the Rise of Crypto Economy: Problems and Prospects (February 21, 2019). Berkeley Business Law Journal, Vol. 16, No. 2, 2019; NUS Law Working Paper No. 2019/003; NUS Centre for Banking & Finance Law Working Paper 19/01. Available at SSRN: https://ssrn.com/abstract=3339040

Lin Lin (Contact Author)

National University of Singapore (NUS) - Faculty of Law ( email )

469G Bukit Timah Road
Eu Tong Sen Building
Singapore, 259776
Singapore

Dominika Nestarcova

National University of Singapore (NUS) ( email )

Bukit Timah Road 469 G
Singapore, 117591
Singapore

Register to save articles to
your library

Register

Paper statistics

Downloads
232
Abstract Views
859
rank
131,840
PlumX Metrics