Gaurav Khandelwal, IFIM Law School, Bangalore
ABSTRACT
Blockchain technology is transforming the venture capital (VC) landscape by introducing transparency, security, and new investment models. Through decentralized ledgers, blockchain enhances data immutability and trust in financial transactions, enabling novel fundraising mechanisms like Initial Coin Offerings (ICOs), Security Token Offerings (STOs), and smart contracts. These developments facilitate automated funding agreements and increase liquidity through asset tokenization and decentralized finance (DeFi) models. Additionally, decentralized venture capital (DeVC) platforms offer inclusive investment opportunities, allowing more accessible and transparent funding. This paper explores the mechanisms, benefits, and challenges of blockchain applications in venture capital.
Keywords: Blockchain, Venture Capital, Decentralized Finance (DeFi), Smart Contracts, Tokenization, Initial Coin Offering (ICO), Security Token Offering (STO), Decentralized Venture Capital (DeVC).
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