{"id":15985,"date":"2018-06-30T13:02:33","date_gmt":"2018-06-30T11:02:33","guid":{"rendered":"https:\/\/www.bm-t.de\/2023-en\/bmt-venture-insights-2-18-trust-isnt-a-four-letter-word\/"},"modified":"2024-03-08T13:06:00","modified_gmt":"2024-03-08T12:06:00","slug":"bmt-venture-insights-2-18-trust-isnt-a-four-letter-word","status":"publish","type":"post","link":"https:\/\/www.bm-t.de\/en\/2018-en\/bmt-venture-insights-2-18-trust-isnt-a-four-letter-word\/","title":{"rendered":"bm|t Venture Insights 2\/18: TRUST Isn\u2019t a Four-Letter Word"},"content":{"rendered":"

While recently in Berlin meet\u00ading with investors we were engaged in an inter\u00adest\u00ading dis\u00adcus\u00adsion about Ini\u00adtial Coin Offer\u00adings (ICOs).  Our con\u00adver\u00adsa\u00adtional coun\u00adter\u00adparty, an early-stage pri\u00advate investor, was advo\u00adcat\u00ading how great it would be if all invest\u00adments had trade\u00adable, blockchain-based tokens, and there\u00adfore the annoy\u00ading prob\u00adlem with illiq\u00aduid\u00adity could be solved. We under\u00adstand the sen\u00adti\u00adment behind this think\u00ading, but believe it focuses too nar\u00adrowly on avoid\u00ading the neg\u00ada\u00adtive effects of a lack of trust and not ade\u00adquately on the pos\u00adi\u00adtive effects of the pres\u00adence of trust.<\/strong>
\n<\/a><\/p>\n

TRUST AND COMMITMENT ARE CRITICAL SUCCESS FACTORS<\/h3>\n

An impor\u00adtant con\u00adcept behind blockchain \/ decen\u00adtral\u00adized ledgers is that one can elim\u00adi\u00adnate the need for direct coun\u00adter\u00adparty trust in envi\u00adron\u00adments where trust can be dif\u00adfi\u00adcult to estab\u00adlish. For exam\u00adple, estab\u00adlish\u00ading trust between par\u00adties that may have never inter\u00adacted with each other prior to con\u00adsum\u00admat\u00ading a trans\u00adac\u00adtion and when there is a low like\u00adli\u00adhood of repeat trans\u00adac\u00adtions between the par\u00adties. There are sit\u00adu\u00ada\u00adtions where the abil\u00adity to remove the need for trust from the equa\u00adtion can be extremely ben\u00ade\u00adfi\u00adcial. How\u00adever, in our m\u00e9tier of ven\u00adture cap\u00adi\u00adtal and pri\u00advate equity, we believe that trust and com\u00admit\u00adment are actu\u00adally crit\u00adi\u00adcal suc\u00adcess fac\u00adtors<\/strong> that can\u00adnot be out\u00adsourced to a face\u00adless, decen\u00adtral\u00adized network.<\/p>\n

At bm\u2011t we have recently recom\u00admit\u00adted our\u00adselves to work\u00ading dili\u00adgently to be the part\u00adner-of-choice <\/strong>for our investee-part\u00adners. This part\u00adner\u00adship mind\u00adset orig\u00adi\u00adnates from a deep belief that when entre\u00adpre\u00adneurs and investors work coop\u00ader\u00ada\u00adtively<\/strong> and openly with a com\u00admon goal that out\u00adstand\u00ading results can stem from this deep trust and mutual understanding.<\/p>\n

WE AT BM|T DO NOT INVEST IN BUSINESS PLANS; WE INVEST IN ENTREPRENEURS.<\/h3>\n

In essence, we aim to find busi\u00adness\u00adpeo\u00adple who we trust will find a way to cre\u00adate value even when plan A, B, or C does not mate\u00adri\u00adal\u00adize as orig\u00adi\u00adnally envi\u00adsioned. We strongly believe that entre\u00adpre\u00adneurs should also cul\u00adti\u00advate and value this trust<\/strong>, which is accom\u00adpa\u00adnied by many pos\u00adi\u00adtive attrib\u00adutes for peo\u00adple and com\u00adpa\u00adnies with big ambi\u00adtions \u2013 such as patience, coop\u00ader\u00ada\u00adtion, com\u00admit\u00adment, and a co-war\u00adrior mentality.<\/p>\n

Indeed, in our view, entre\u00adpre\u00adneurs should be very wary of the siren songs of ICOs<\/strong>, instant liq\u00aduid\u00adity, and not hav\u00ading to deal directly with pesky investors, as those investors are exactly the ones who are most likely to sup\u00adport com\u00adpa\u00adnies when changes to the busi\u00adness plan become nec\u00ades\u00adsary or in moments when a cat\u00ade\u00adgory falls out of favor with the crowd.<\/p>\n

We at bm|t are work\u00ading con\u00adcert\u00adedly to cre\u00adate an envi\u00adron\u00adment of mutual trust <\/strong>by com\u00admu\u00adni\u00adcat\u00ading pro-actively and trans\u00adpar\u00adently with our Investee-Part\u00adners; and we highly value that same com\u00admu\u00adni\u00adca\u00adtion in return. We view trust as a valu\u00adable long-term asset<\/strong> that can pro\u00adduce great div\u00adi\u00addends, not some\u00adthing to be outsourced.<\/p>\n

Your Com\u00admit\u00adted to Trust bm\u2011t Team<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

While recently in Berlin meet\u00ading with investors we were engaged in an inter\u00adest\u00ading dis\u00adcus\u00adsion about Ini\u00adtial Coin Offer\u00adings (ICOs).  Our con\u00adver\u00adsa\u00adtional coun\u00adter\u00adparty, an early-stage pri\u00advate investor, was advo\u00adcat\u00ading how great it would be if all invest\u00adments had trade\u00adable, blockchain-based tokens, and there\u00adfore the annoy\u00ading prob\u00adlem with illiq\u00aduid\u00adity could be solved. We under\u00adstand the sen\u00adti\u00adment behind [\u2026]<\/p>\n","protected":false},"author":2,"featured_media":15567,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"wp_typography_post_enhancements_disabled":false,"footnotes":""},"categories":[147,250],"tags":[255,253],"class_list":["post-15985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2018-en","category-insights","tag-ico-en","tag-insights-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts\/15985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/comments?post=15985"}],"version-history":[{"count":0,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts\/15985\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/media\/15567"}],"wp:attachment":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/media?parent=15985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/categories?post=15985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/tags?post=15985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}