Abstract: The emergence of data-dash driven markets has been transforming many aspects of the economy, including how young innovative firms raise money. Recently, the availability of blockchain technology has enabled entrepreneurial teams to fundraise by selling crypto tokens in "Initial Coin Offerings" (ICOs). ICOs have attracted the attention of sophisticated investors such as venture capitalists and business angels. The literature dedicated to entrepreneurial finance shows that, after controlling for the selection effect, entrepreneurs backed by sophisticated investors obtain not only from financial support but also non-financial benefits such as increased performance. In this paper, I aim at testing whether entrepreneurs raising money via ICOs can reap similar benefits when sophisticated investors participate in the crypto token sales.