Boost Ventures CEO Adam Draper is optimistic about blockchain equity crowdfunding

Rage Review : Boost Ventures is a company that mainly invests in blockchain technology. It recently created the first blockchain-based equity crowdfunding platform. In the article, the company's CEO Adam Draper pointed out that the platform is currently in its early stages of development and needs to seek policy support to open up a larger situation. Although this practice is still rare among startups, Adam Draper believes that the impact of the JOBS Act has actually penetrated into startups. The current dominant position of venture capitalists in the system has its benefits for maximizing the role of this platform, but equity crowdfunding still needs time to accumulate.

Translation: Annie Xu

The only person who has a say in the concept of blockchain equity crowdfunding is probably Adam Draper, CEO of Boost VC. Boost VC has participated in many blockchain technology investments and founded BoostFunder, which Adam Draper calls the first equity crowdfunding platform.

Adam Draper shared his views on blockchain equity crowdfunding in a video, which begins like this:

“We are at a crossroads in the digital currency crowdfunding system. I believe in the efficiency and traceability of blockchain crowdfunding, and the ledger can automatically settle. There are many advantages of this system.”

Adam Draper went on to discuss the regulatory approval of the system, the impact of the JOBS Act (which contains some relevant provisions for the early stages of corporate development); and said that it would take some time for this type of financing system to develop.

Regulatory approval required for widespread adoption

Adam Draper

Regulatory support for blockchain equity crowdfunding platforms is Adam Draper’s biggest concern.

"The biggest problem now is that there needs to be a regulator to enable it, otherwise it will not be widely accepted."

Although early bitcoin and blockchain adopters disliked the idea of ​​seeking regulatory approval, “regulatory approval is very, very important for our system because you can’t completely bypass the government.”

This clear regulatory policy is not what he personally wants, but is required by the current situation.

"You know, I don't like to talk about this either; I also see government regulation as an obstacle to the development of the system. For many startups, it is not easy to get regulatory approval. But regulatory approval can bring opportunities to many people."

As Adam Draper suggests, regulatory capture is indeed attractive to business.

Impact of the JOBS Act

The JOBS Act was expected to have a significant impact on the equity crowdfunding industry. In fact, the legislation has already changed one aspect of the venture capital industry, as Adam Draper said:

“It’s really interesting. We’ve really been seeing regulation in the last two or three weeks that we haven’t seen before. If you’ve applied for SEC certification, other investment funds will say they’ve already raised money. They’re not closing a fund, they’re raising money; this never happened before the JOBS Act.”

Adam Draper has his own opinion on this phenomenon:

"It's exciting. More people are paying attention to it, it's no longer a private matter, it helps the fund grow. It's creating excitement. Obtaining policy approval will obviously make it easier to grow a fund. You know, it used to be very strict."

Although the JOBS Act weakens the policy restrictions on online fundraising, the impact on blockchain-based systems remains unclear. At least for now, there is no policy possibility of allowing startups to issue colored coin stocks.

Equity crowdfunding takes time to accumulate

Adam Draper on the future of crowdfunded equity:

“I always believe that evolution is ongoing, but it will take time to accumulate.”

At present, venture capitalists still control the financing system and value. In view of this, Adam Draper said that raising funds on crowdfunding platforms provides more possibilities for startups, "but it is currently limited to additional benefits in the process of raising funds."

Finally, Adam Draper concluded:

“Next year’s pilot project will likely bring equity crowdfunding to real life, which is fun and cool. I like disruptive changes in all industries, and I just hope I’m the winner in the end.”