This is interesting. Are the blurred images behind "Mystery YC Company" relevant to the company in any way, or just random backgrounds? The reason I ask is that one of them shows a screenshot for a startup that I know is not a YC company, and I know they aren't raising since they were recently acquired.
Wefunder (YC W13): Invest in Startups
41–50 of 83 posts
Re: Wefunder (YC W13): Invest in Startups
#42Earlier quoted context omitted.
Wow, that's funny. As I was reading that, I was thinking "what a thoughtful comment for HN." At least I'm consistent. Twould be nice if you punctuated it properly though.
I'm a bit confused by this...why did you fund Wefunder then? "Amateurs" are exactly the people that will be funding startups on Wefunder...
If you imagine investors organized concentrically with the sort who physically show up on Demo Day at the center, I think the sweet spot for this type of thing is the next ring out: people who are not focused on startup investing, but who either understand startups well (like rdl) or are rich enough to learn about them by trial and error.
Re: Wefunder (YC W13): Invest in Startups
#43Earlier quoted context omitted.
Wow, that's funny. As I was reading that, I was thinking "what a thoughtful comment for HN." At least I'm consistent. Twould be nice if you punctuated it properly though.
I'm a bit confused by this...why did you fund Wefunder then? "Amateurs" are exactly the people that will be funding startups on Wefunder...
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Re: Wefunder (YC W13): Invest in Startups
#44Earlier quoted context omitted.
I agree that ordinary people shouldn't bet their life savings on startups. But this allows an average well-informed SF employee to invest $1,000-2,000/month of his/her salary into any startup they like - hardly a life changing amount. See it as a Kickstarter on steroids. At least this gives us a chance too to invest in the next Dropbox and Airbnb.
Worth noting: $1,000-2,000/month stashed in a less risky asset class (e.g. index funds) over 30 years is likely to be enough for most people to retire comfortably. That's potentially life changing over the long term.
Indeed. Nobody should limit their investments to just these. For every $1,000 you put into a crowdfunded company, you should be investing at least $4,000 in more traditional and safe investments. And 20% is even a lot. That assumes a young person who has high future earnings potential and a high risk tolerance. 5-10% would be more reasonable for most people.
That said - this is certainly an asset class one could beat the S&P500 with, as long as you aren't just throwing darts and are actually investing in companies you know a lot about and understand.
Re: Wefunder (YC W13): Invest in Startups
#45I am not impressed. You are issued stock or a convertible note after your initial investment and you can cannot convert that note till the company is either bought-out or goes public. What if they don't do either and simply reinvest the "profits" back into the company thereby showing no profits? What happens if the board of the directors of the company you invested in dilutes your shares by issuing more-and-more stoc…
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Re: Wefunder (YC W13): Invest in Startups
#46Earlier quoted context omitted.
I'm a bit confused by this...why did you fund Wefunder then? "Amateurs" are exactly the people that will be funding startups on Wefunder...
If you imagine investors organized concentrically with the sort who physically show up on Demo Day at the center, I think the sweet spot for this type of thing is the next ring out: people who are not focused on startup investing, but who either understand startups well (like rdl) or are rich enough to learn about them by trial and error.
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Re: Wefunder (YC W13): Invest in Startups
#47Lots of new people in this space lately: AngelList via SecondMarket, FundersClub, MicroVentures. I have an investment in a seed fund run by a prominent angel, so I have some insight into recent valuations. I get the feeling that these online investors are getting inferior terms. For example, convertible debt usually comes with a conversion discount and a cap, but the deals I've seen on FundersClub have been missing o…
Fundable and RockThePost are also making good noise
Re: Wefunder (YC W13): Invest in Startups
#48Seed investing is not something for amateurs, in fact frankly I don't think investing in public companies is for amateurs. I would tell ordinary people to invest in index funds and don't invest in startups at all. You should not be investing in startups because you think it is going to change your life. You shouldn't be doing it unless you're rich enough that your life wouldn't be changed by making lots of money. - P…
I agree that ordinary people shouldn't bet their life savings on startups. But this allows an average well-informed SF employee to invest $1,000-2,000/month of his/her salary into any startup they like - hardly a life changing amount. See it as a Kickstarter on steroids. At least this gives us a chance too to invest in the next Dropbox and Airbnb.
But this allows an average well-informed SF employee to invest $1,000-2,000/month of his/her salary into any startup they like - hardly a life changing amount. See it as a Kickstarter on steroids. At least this gives us a chance too to invest in the next Dropbox and Airbnb.
These aren't "ordinary" people? This model's only barrier to entry is the $1k it takes to get in (AFAICT) its not limited to "well-informed SF employees".
Re: Wefunder (YC W13): Invest in Startups
#49How are you guys avoiding having to register as a broker dealer before the JOBS act goes into place? (I'm assuming you're applying for Funding Portal status afterwards)
Great question. There are a few reasons we are able to do this now, mainly that we are not being compensated in any way. That being said we do have a relationship with a broker dealer to give us flexibility moving forward.
Cool! What broker/dealer are you partnered with?
Re: Wefunder (YC W13): Invest in Startups
#50Earlier quoted context omitted.
I'm a bit confused by this...why did you fund Wefunder then? "Amateurs" are exactly the people that will be funding startups on Wefunder...
If you imagine investors organized concentrically with the sort who physically show up on Demo Day at the center, I think the sweet spot for this type of thing is the next ring out: people who are not focused on startup investing, but who either understand startups well (like rdl) or are rich enough to learn about them by trial and error.
Ok I see your point and agree with it, but Wefunder is metaphorically opening up to nearly the entire universe by eventually allowing anyone to invest--it doesn't seem to be doing anything to stop 'amateurs' from investing.
I'd like to believe that there are many people have a couple thousands dollars that they'd be willing to invest in a startup that seems promising. In the next year, I will theoretically be able to invest in startups via Wefunder...and I am in college with just one startup under my belt. I like to think I understand startups well but given my age and experience, I bet there are people who understand them far better than I do...and far less as well.