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Introducing A16Z Crypto

a16zcrypto.com

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Re: Introducing A16Z Crypto

#11

Post by lintroller »

a16zcrypto wrote: post #2

Here's what I don't understand: if you're a crypto project, why wouldn't you raise funds through an ICO yourself? What benefit does a16z give you? One of the biggest assets of crypto is the ability to self-fund. Also, since the space is relatively new, I have my doubts about the ability of a16z to provide any useful crypto experience.

What benefit does a16z give you?

Beyond the legitimacy of being backed by a well-known venture capital firm, the most obvious is from the article:

"We provide operational support to entrepreneurs. Our crypto investments have access to the same 80+ person a16z operating teams as do our non-crypto investments. Our operating teams have deep expertise in executive and technical recruiting, regulatory affairs, communications and marketing, and general startup management. We are responsible participants in the governance of companies and the governance of networks."

Re: Introducing A16Z Crypto

#12

Post by [deleted] »

a16zcrypto wrote: post #2

Here's what I don't understand: if you're a crypto project, why wouldn't you raise funds through an ICO yourself? What benefit does a16z give you? One of the biggest assets of crypto is the ability to self-fund. Also, since the space is relatively new, I have my doubts about the ability of a16z to provide any useful crypto experience.

[deleted]

Re: Introducing A16Z Crypto

#13

Post by shawn »

a16zcrypto wrote: post #2

Here's what I don't understand: if you're a crypto project, why wouldn't you raise funds through an ICO yourself? What benefit does a16z give you? One of the biggest assets of crypto is the ability to self-fund. Also, since the space is relatively new, I have my doubts about the ability of a16z to provide any useful crypto experience.

It's sort of not cool to choose a16crypto as your username. HN wouldn't work if we didn't have identities, and traditionally the identity of the author is taken by the author.

On the other hand, it's immediately obvious you're unrelated, so maybe it doesn't matter.

To answer your question, as the world stabilizes and the crypto scene becomes less tumultuous, we'll see the rise of traditional models. It's a smart move to start that process sooner rather than later.

In the old days, you won by controlling a "channel" -- whether it's a literal TV channel, or a limited asset, or anything where people had to go through you and you alone.

The internet briefly disrupted that old model. But once again it's true: YC won thanks to HN, for example. It's a channel they control, and it shapes us and the way we think.

Once ICO scams stop working, people will eventually realize that the fundamentals are what matter: solid networks, solid resources, and a vision with a group of people to build it. ICOs rarely get you any of those, let alone all of them.

Re: Introducing A16Z Crypto

#14

Post by chrisco255 »

I totally agree with A16Z here. Blockchain skepticism is not hard to find on HN and beyond. First, the ecosystem is vast and evolving quickly. If you've "tuned out" by dismissing blockchain, then don't be surprised when your industry gets disrupted in 5-10 years. I think we'll begin to see business logic open-sourced on the blockchain. For example, existing SaaS model incentivizes closed-source, centrally managed repositories. For example, a CRM-focused blockchain might place the business logic for managing customer relations and sales on-chain and enable competing clients to build on the protocol. A CRM built in this way might enable multiple "thin clients" to build and an ecosystem to develop around it. I think we're a ways off, but that sort of thing is just one of the use-cases that excites me about it.

Re: Introducing A16Z Crypto

#15

Post by pdpi »

If you’re an insider, there’s a somewhat big technical mistake in there that kind of undermines their credibility.

> Blockchain computers are new types of computers where the unique capability is trust between users, developers, and the platform itself.

Trusting somebody implies they’re in a position to hurt you, which makes it undesirable in a secure system. Unfortunately, trustless systems tend to be cumbersome and impractical. What makes Bitcoin interesting is precisely that it’s a remarkably practical system built on a trustless base.

Re: Introducing A16Z Crypto

#17

Post by dang »

a16zcrypto wrote: post #2

Here's what I don't understand: if you're a crypto project, why wouldn't you raise funds through an ICO yourself? What benefit does a16z give you? One of the biggest assets of crypto is the ability to self-fund. Also, since the space is relatively new, I have my doubts about the ability of a16z to provide any useful crypto experience.

You can't pick that username—it's misleading, as shawn pointed out. I've banned this account, but if you want it unbanned you're welcome to email us (hn@ycombinator.com) with a username that's both neutral and available, and we'll change it for you.

Re: Introducing A16Z Crypto

#18

Post by vorpalhex »

chrisco255 wrote: post #14

I totally agree with A16Z here. Blockchain skepticism is not hard to find on HN and beyond. First, the ecosystem is vast and evolving quickly. If you've "tuned out" by dismissing blockchain, then don't be surprised when your industry gets disrupted in 5-10 years. I think we'll begin to see business logic open-sourced on the blockchain. For example, existing SaaS model incentivizes closed-source, centrally managed rep…

> a CRM-focused blockchain might place the business logic for managing customer relations and sales on-chain and enable competing clients to build on the protocol

Why.. would you need to put those on a blockchain across a bunch of disparate consumers? In theory isn't my business logic fairly, you know, secret sauce?

Blockchain is vaguely "A spreadsheet everyone gets a copy of." There are some cases where that can be useful - usually for verification. There are also some issues with that - there are no takebacksies if somebody say, publishes illegal content.

If I want to prove to everyone in Minecraft that I hold a million minecraft points, a blockchain might be a good answer. If I want to store my secret, frequently updated business rules with tons of private details about my clients... why in the world would I use a blockchain?

Re: Introducing A16Z Crypto

#19

Post by TrevorAustin »

I hope for all of our sakes that it's more profitable for a16z to invest in real blockchain startups and leverage their experience to uncover exciting, legitimate applications of the technology than it is to just day-trade cypto assets.

Re: Introducing A16Z Crypto

#20

Post by staunch »

> If there is another “crypto winter,” we’ll keep investing aggressively.

This is how the good investors win. They have real definable thoughts of their own about technology. The truth is that most VCs aren't much more than bad money managers that chase other bad money managers around in circles.

It's not that VCs are stupid. It's that new technology is complex and very few people at all understand it. Even very good technologists can't understand more than a few areas with any level of expertise.

I really believe that decentralization will blow up the entire VC world itself but even this phenomenon will be a huge opportunity for some small number of VCs to profit from. Probably firms doing stuff like this.

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