B corps - what are they?

B Corps

B Corps are a type of corporation called a benefit corporation. Companies get to focus on higher purposes while also gaining a profit. This in theory is supposed to blend the profit incentive with political objectives. Millennials may not want to go to work just for a pay check and these corporations may be inspiring. At the same time social objectives are difficult to mesh with the concept of fiduciary duty.

VCs don't necessarily like B Corps and seem to prefer C Corps. Most corporations in Silicon Valley are C corps. In a way the blockchain community has also been infiltrated with the corporatist mind set where even if you start a non-profit entity and distribute a token there are people who still even then will expect a profit. This in my opinion is a problem that arose from ICO culture vs fundraising culture. Crowd funding or crowd sales have been replaced by the term ICO and this is evidence that speculators are now the main customer of blockchain technology.

References

  1. https://en.wikipedia.org/wiki/Benefit_corporation
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