If you are a software entrepreneur, raising money by selling digital assets (“tokens”) is a legitimate option that flips VC on its head with instant liquidity and value based on the success of the network.
Ethereum raised $15 million to fund their network, which now has a market cap around $18 billion.
Cosmos launched their mainnet yesterday, and now has a market cap over $1 billion. All of the employees can exit if they choose, who were given tokens rather than illiquid stock.
To be perfectly honest, this is a much fairer system for the average employee at a startup than our current ISO situation, where employees are diluted, forced to pay ridiculous AMT taxes on exercise, and basically screwed by the founders.