Title: Industry experience over academic credentials: VC investment patterns in early ICO markets (2017-2018)

Authors: Hye Rin Shim

Addresses: School of Communication and Culture, Department of Advertising and Public Relations, Hanyang University, Ansan-si, 15588, South Korea

Abstract: This study examines how founder characteristics influence venture capital investment decisions and ICO performance during blockchain's foundational period (2017-2018). Analysing 514 successfully listed ICO projects on Binance, we investigate which founder attributes drive institutional investment and exchange listing outcomes using human capital and signalling theories. Our findings reveal that venture capitalists prioritise founders' industry-specific experience and functional backgrounds over traditional educational credentials when evaluating blockchain ventures. Founders with related industry experience demonstrate significantly higher likelihood of attracting VC investment (β = 1.301; OR = 3.673; p < 0.01) and achieve more efficient market preparation processes evidenced by reduced time-to-listing (β = -0.622; HR = 0.537; p < 0.01). Mediation analysis indicates that venture capital investment partially mediates the relationship between founders' related industry experience and ICO listing time, with the indirect effect accounting for 15.9% of the total effect. These results extend human capital theory to digital entrepreneurship contexts.

Keywords: blockchain entrepreneurship; venture capital; human capital; signalling theory; initial coin offerings; founder characteristics.

DOI: 10.1504/IJBC.2025.149932

International Journal of Blockchains and Cryptocurrencies, 2025 Vol.6 No.3/4, pp.212 - 235

Received: 22 Jun 2025
Accepted: 02 Sep 2025
Published online: 18 Nov 2025 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article