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Previously for a startup looking to raise capital, most companies took the same route. Terms like Venture Capital, Seed Funding, Series A, B, C, & Investment Banking were common. Today we have a disruptor in the global finance industry through the power of the distributed ledger, including a popular type known as blockchain, so companies now have another option of financing through what has come to be known as an Initial Coin Offering (ICO). In 2017, blockchain startups raised more than $1 billion through traditional Venture Capital, and a whopping $5.6 billion through ICO capital. Let’s take a look at the two models and compare them.

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