Thread by @balajis

Capital is a commodity. Choose investors on the basis of their distribution.

That can be consumer distribution in the form of social media & brand halo, or enterprise distribution in the form of business relationships & actual distribution deals (if the investor is a strategic), or both.

But that’s now what distinguishes investors: their distribution.

This is a way to reconcile the points by @nikitabier & @josephflaherty.

Nikita was arguing that investors should have consumer distribution (eg social media).

Joseph said that they should have enterprise distribution (eg M&A help).

Both are right. But both are more than money.

https://twitter.com/josephflaherty/status/1384888133305708549

The reason this is important is that most investors have not really thought through the world of Republic, AngelList, and especially crypto.

Founders have more leverage than ever before - fast commodity capital is now on tap from a retail audience.

So, pros need something else.

https://twitter.com/shl/status/1371491466158075906

If you have many small investors, like users of @joinrepublic or holders of a crypto protocol, your communication with them is more like a customer interface than a board meeting.

And that’s often much faster & easier than raising from traditional VCs.

Who now need to adapt.

By the way, of course you also want to choose investors on the basis of their values & character.

This is more related to their distribution than their capital.

For example, if they come back with good references, they are more likely to have good enterprise distribution.