venturecapital

I’ve participated in crowdfunding since before that term existed. 

4 things must be addressed for it to breakout:

1. Highest potential startups avoid it

2. Perceived negatively by VCs

3. Hard to mobilize investor base post-investment

4. As much work as a typical raise


Thoughts on how these can be overcome?

Healthcare investor by day, web3/AI tinkerer by night. 🟪 Host: /venturecapital /theitinerant

VC is one of the few asset classes with persistence of returns driven by A) Dealflow dynamics (i.e. self-selection, good founders seek good investors) and "king-making" capabilities (i.e. Sequoia has a much better chance of influencing an outcome by deploying their playbook/resources to a potential category winner)

So I don't have a clear answer, just wanted to provide more nuance about where the tension comes from. My take is that crowdfunding has a good chance to be a viable source of early capital and change the signaling risk, but will not be able to influence the venture outcome

IMO crowdfunding doesn't help on either because there is not enough skin in the game. When crowdfunding groups become a systematic source of alpha (dealflow) the decision-making/governance is better run as a GP (similar to what we see in DAOs & funds now)