[Method-X]

How is that any different from issuing shares privately to VCs? It seems to me the only fundamental difference is with the technology. Things like voting and vesting can be done on a blockchain, so that's not a limitation. There isn't any rule that says a blockchains token distribution has to be "fair". Granted, a more "even" initial distribution makes sense for a currency, but it you're treating crypto tokens as shares in a company, those "rules" need not apply.

[CamelCaseName]

The difference is in how much value must be added before VCs can sell their holdings onto the public.

Many ICOs give deep discounts to "partners" who may not have even spent anything, but are just used as an endorsement and social proof. Within days those partners will be dumping on others.

I suppose by definition VCs look very similar to ICO "partners", but the latter's due diligence will rest entirely on finding the greater fool, whereas the VC will seek to establish whether the team can actually deliver, product fit, etc.

Thats said, I'm sure there are a handful of exceptions to both VCs and ICO partners.