HBOs Silicon Valley Performs An ICO During The Show
The favorite comedic show for entrepreneurs about the madness that happens around the startup capital in Silicon Valley recently performed their own ICO. Disclaimer- spoiler alerts.
As Pied Piper is looking for series B funding, Richard Hendriks starts to wonder if its worth it to give up board seats and equity at his company for $30 million. Giving up board seats means the one who holds it (Laurie Bream) will be able to make decisions that are more convenient and profitable for her VC firm. Not necessarily for the benefit of the startup.
Meanwhile, main character Bertram Gilfoyle, who is the chief systems architect for Pied Piper, is able to convince its CEO, Richard Hendriks about another funding alternate: Initial Coin Offering. Gilfoyle, a true bitcoinist since its beginnings, has been mining digital currencies since 2009 when bitcoin emerged, a scene he described as “underground” and “only true believers.” His alternate solution to series b is letting the public purchase “Pied Piper Coins” during ICO phase to raise funds to continue growing their startup.
The benefits he laid out for Richard during his pitch was the flexibility they will have with more board seats, bigger community, and more equity stake for the founding team. In an interview with Bloomberg tech, Gilfoyle said:
“What attracted me was the passage an ICO offers across the river sticks of venture capital. What attracted me was an informed disdain for traditional fiat currency, its paper stained with the greasy fingerprints of your banks and your mints.” (CCN)
WATCH: Pied Piper's Bertram Gilfoyle talks (rants) to @EmilyChangTV about the company's recent ICO and his opinion of banks, paper money and VCs (he's not a fan).
— Tech At Bloomberg (@TechAtBloomberg) May 7, 2018
It’s interesting to note the timing of the show and a recent blog post made by Binance CEO Changpeng Zhao against VC funding and the necessities of ICOs. He envisions a world where everyone can partake in projects with a small quantity of money rather than only accredited investors being able to invest in startups. He lays out the benefits of ICOs, from liquidity, world reach, and minimal investment needed. He is well aware of scams and failures, but remember that 90% of startups fail as well, you just have to do research and due diligence amongst other things to find the right ones.
The biggest battle against ICOs is what their token functionality stands for. Many tokens and ICOs should be considered as securities according to the SEC. Good thing Pied Piper Token was able to find a way to get away with a utility token.
Image by: Intro to show.