Tim Draper, a famous American capitalist and strong cryptocurrency investor, believes that going public or going public is not the best source of finance for companies in the industry.
The billionaire attended the Unitize conference on July 6 to discuss how to invest in early stage blockchain startups.
Draper’s opinion on IPOs
During the Unitize Panel, Draper noted that existing regulations made blockchain companies more difficult to go public. “I don’t recommend anyone to go public now unless your company is worth at least $ 10 billion.”said the famous investor.
Draper continued that it made more sense than Blockchain companies are looking for large fund investments or are using another way to raise funds such as tokenization for smaller investments. Draper elaborated:
“The regulators made the IPO so expensive that it really wasn’t worth it […] The biggest investments come from these big funds, and this is usually an easier way to get your money than trying to go public. “
According to Draper The IPO process used to be much cheaper. Companies used to go public when they were worth “$ 50 million or more” and “with only $ 20 million in sales”. Today, “however, it’s only worth it if you have a $ 5 billion market cap,” said the investor.
Invest in diversity
On the panel Draper also supported diversity in funding start-ups. Draper Associates and Draper Fisher Jurvetson run an early stage venture capital firm. The investor confirms that factors such as country of origin, history, race or gender play no role in the selection of the startup to be financed.
“If we continue to support these exceptional entrepreneurs, whoever they are, where they come from, we will improve the world. That’s how I see it. I tell them to come with every story, background, religion, race, gender, we’re interested. “
“What we’re looking for are great ideas, great markets where the entrepreneur is passionate about what he does,” said the investor. By supporting diversity, Draper reaffirmed the growing trend for diversity in the industry. Some experts believe that the cryptocurrency industry has started to showcase more diversity than many other technological ecosystems.
Draper is also a big supporter of major cryptocurrencies like Bitcoin (BTC). February 2020 The billionaire said he had “much” of his portfolio in BTC after giving up public stocks in favor of the cryptocurrency six months ago. Draper, one of the biggest Bitcoin bulls of all time, is convinced of it Bitcoin will exceed $ 250,000 in early 2023.
Unitize is the first online conference organized by BlockShow and San Francisco Blockchain Week. The event takes place from July 6-10, and includes key players in the industry, including Ethereum’s co-founder, Vitalik Buterin, and Binance’s CEO, Changpeng Zhao.