Crypto shortens the time from entrepreneur to investor by 10x.
This is amazing for entrepreneurs and bad for traditional investors.
Quick thoughts on why this matters.
1/
This is amazing for entrepreneurs and bad for traditional investors.
Quick thoughts on why this matters.
1/
2/ In traditional tech, a founder builds a company for 10+ years then exits and makes money.
Then they start angel investing and many launch their own funds.
These founders create VC funds that entrepreneurs love having on the cap table
(ex: @foundersfund & @khoslaventures)
Then they start angel investing and many launch their own funds.
These founders create VC funds that entrepreneurs love having on the cap table
(ex: @foundersfund & @khoslaventures)
3/ But now we have 100s of VCs run by non-entrepreneurs.
These are the MBAs who create funds bc it’s the cool thing to do.
They only make safe bets and can’t empathize w/ the entrepreneur bc they haven’t done it themselves.
They don’t add much value outside their capital.
These are the MBAs who create funds bc it’s the cool thing to do.
They only make safe bets and can’t empathize w/ the entrepreneur bc they haven’t done it themselves.
They don’t add much value outside their capital.
4/ In crypto, founders are liquid from day one and have most of their money in BTC/ETH.
This means founders can start investing personal capital into the new wave of companies much earlier in the founders’ career.
This means founders can start investing personal capital into the new wave of companies much earlier in the founders’ career.
5/ This has a huge impact on the new wave of startups.
Instead of raising from a bunch of VCs who will negotiate terms until you’re sick and won’t add much value, now you can strictly raise from entrepreneurs who feel your pain… who know the grind of building.
Instead of raising from a bunch of VCs who will negotiate terms until you’re sick and won’t add much value, now you can strictly raise from entrepreneurs who feel your pain… who know the grind of building.
6/ Some of the best crypto investors today are also builders.
They build alongside the companies they invest in.
Examples include @rleshner, @StaniKulechov, @_pgauthier, @anildelphi, @bobbyong, and more.
Founder led cap tables are the future.
They build alongside the companies they invest in.
Examples include @rleshner, @StaniKulechov, @_pgauthier, @anildelphi, @bobbyong, and more.
Founder led cap tables are the future.
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