The Hidden Costs of Initial Coin Offerings


This post is by Jeffrey Bussgang from HBR.org


Click here to view on the original site: Original Post




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In recent years, much has been written about how the Blockchain is poised to transform traditional industries such as banking, real estate, and healthcare. More recently, it has gained attention as a way to finance new ventures, through what is known as an Initial Coin Offering (ICO). Less noticed, though, is ICOs appear almost antithetical to the standard approach to financing a risky venture.

In fact, ICOs have upended the conventional pattern of staged experimentation and fundraising. Blockchain startups raised over $5 billion in 2017 through ICOs and over $12 billion through the first three quarters of 2018. The average amount of capital raised by a Blockchain project through an ICO in 2017 was $13 million; through the third quarter of 2018 it was $25 million. These ICOs are nearly always held when a project is at an immature stage of development akin to a seed stage

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Continuous Development Will Change Organizations as Much as Agile Did


This post is by Jeffrey Bussgang from HBR.org


Click here to view on the original site: Original Post




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In 2001, a new approach to technology development was created by a daring group of developers. Called Agile, the process put customers at the center of product development, encouraged rapid prototyping, and dramatically increased corporate speed and agility.

While Agile began as a product development innovation, it sparked a corporate strategy and process revolution. Agile development laid the intellectual groundwork for the Lean movement in entrepreneurship, which further pushed business leaders to organize their business model and product development work around a series of experiments, testing critical hypothesis along the way. Agile and Lean initially grew popular in the startup world, but soon were embraced by mainstream business leaders around the globe. GE famously implemented Lean methodologies throughout all of their divisions, helping reduce cycle time and better aligning their work with the customers’ needs, leading to then-CEO Jeff Immelt’s declaration that GE had transformed from a “classic

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