Thread by @dunkhippo33

One of the fascinating things about investing in startups is the risk to reward profile.

A quick thread >>

1) I just tweeted about friends who have done really well in crypto. Eg if you got into Solana at $0.50-0.60 per token just last year (so not even the exclusive pre-sale price), you’d be up 300x!

https://twitter.com/dunkhippo33/status/1450665308683857920

2) Put into dollars, if you had bought $5000 of tokens, that would be worth $1.5m!

3) if you had bought ETH in 2016 at $0.75 per token, you’d be up 5000x!

4) So $5k -> $25m 🤯

5) Again the most mind blowing thing about all of this is both opportunities were available to the general public. This was not behind closed doors.

6) This is how the future of investing in startups should be. For so long, VCs have had exclusive access - often behind regulations that have allowed them to have gains that the general public could not get.

7) The stock mkt is a good example of this as well. Before Dodd-Frank in 2010, as a result of the 2008 recession, you could buy tech stocks on the public mkts as a “normal person” and get huge gains.

8) Amazon for example went public at $18 per share in 1997. 20 yrs later, a $5k investment would be worth $5m.

A retail investor could become a millionaire from a small investment.

9) Today, ~10 yrs post Dodd-Frank you don’t see these kinds of gains in the public markets anymore.

Companies stay private longer, making investment access at the earlier stages an exclusive activity.

10) The argument is always that our gov is trying to protect us. But with prudent large portfolio construction and outsized returns of startups, investing in early stage companies is not as risky as ppl make it out to be.

11) In fact in this market, you can probably financially engr a portfolio to be the same level of risk as gov bonds with amazing upside. (Bonds are also now more risky - hah)

12) And the upside of a startup portfolio is life changing - for not much risked.

13) This is one reason crypto is so exciting because it removes barriers of access and levels the investor playing field.