Insight Into the 1confirmation Fund!
Some Great Details about 1confirmation
1confirmation is a new venture fund that is backed by big names in Silicon Valley such as Chris Dixon, Mark Cuban, Thiel Capital, Marc Andreessen, and many others. Recently they announced the close of Fund I, which raised $26M to be used as seed capital. The money will be used to support entrepreneurs working to decentralize the web and society.
The Reason for this Fund
Over the coming 10 years, decentralization around the world is going to spread quite rapidly. This is going to be driven by cryptography and incentives to get people on board. The fund seeks to play a small part in this movement by offering those driving decentralization some funding to get them off the ground.
Why Decentralization Matters
There are those who believe that decentralization has no real-life application. However, the backers of the fund disagree. For one, through decentralization, power is given back to the people. In the centralized systems, those in leadership work to benefit themselves at the expense of the less-coordinated masses.
However, via decentralization, those in power will find it quite hard to collude against the masses. A good example of this movement is Bitcoin. This is just one example of how a decentralized system can empower people to do more.
Another issue is security and reliability. Via a decentralized system, people benefit from the fact that there is no central point, which can fail. In terms of security, a hacker would have to expend a huge amount of resources if they wanted to compromise security. Thus, the various amounts of nodes make a decentralized system more secure. Right now, decentralization is in its formative stages. With time, its quality is going to improve.
Why This Fund Matters
In 2017, token sales raised over $4 billion. Thus, some may ask themselves what purpose this fund will serve. Those who use the Ethereum blockchain will find it quite easy to raise funds. Best of all, you can tap into a global base for your funding needs with the power of the Internet. Thus, some have postulated that the role of venture capitalists is diminishing.
However, this fund is important because of the knowledge and experience they bring to the table. The backers of the fund are people who are serious about dedicating time, energy, and skills to support entrepreneurs at the early stages of a product.
Another reason is that raising too much money at the product development stage is not safe. Experience has shown that this type of model usually leads to failure. The best approach is usually to raise a high quality of capital that can be used to fund the product, and comply with regulators.
Once the product has been developed and all legal compliance fulfilled, it would then make sense to launch the token sale. Besides money, the 1confiration fund provides business development, marketing support, and community building from experienced leaders. Developers will also get access to lawyers, network engineers, and business people who are willing to help. The fund will offer $50K-$70 as initial investments to startups.
What do you think about the 1confirmation fund? Leave us your thoughts in the comment section below.