Capital-As-a-Service: A New Operating System for Early Stage Investing
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Re: Capital-As-a-Service: A New Operating System for Early Stage Investing
#2So, a bank?
Re: Capital-As-a-Service: A New Operating System for Early Stage Investing
#3If it’s semi automated with humans making decisions in the background it could make sense.
I guess the value it could bring is low friction yes/no without wasting the founders time.
It’s the time suck that is such a negative aspect of seeking capital!
Re: Capital-As-a-Service: A New Operating System for Early Stage Investing
#4The flaw here is using the wrong metrics. Once a company has found a repeatable and growing business model, it’s trivial to raise money and there’s no reason to pick Social Capital over anyone else.
The big market opportunity is to fund startups at the very earliest signs of success. When all they have to show is some code and a few Hacker News upvotes or GitHub stars.
Someone is going to make YCs returns look weak by funding this early. And nothing would do more for diversity than a low barrier test that is 100% blind and meritocratic.
Re: Capital-As-a-Service: A New Operating System for Early Stage Investing
#5The flaw here is using the wrong metrics. Once a company has found a repeatable and growing business model, it’s trivial to raise money and there’s no reason to pick Social Capital over anyone else. The big market opportunity is to fund startups at the very earliest signs of success. When all they have to show is some code and a few Hacker News upvotes or GitHub stars. Someone is going to make YCs returns look weak b…
> it’s trivial to raise money
Perhaps, but social capital may require giving away less of the farm to do it.
Re: Capital-As-a-Service: A New Operating System for Early Stage Investing
#6The flaw here is using the wrong metrics. Once a company has found a repeatable and growing business model, it’s trivial to raise money and there’s no reason to pick Social Capital over anyone else. The big market opportunity is to fund startups at the very earliest signs of success. When all they have to show is some code and a few Hacker News upvotes or GitHub stars. Someone is going to make YCs returns look weak b…
so which metrics are the right ones to look at?
Re: Capital-As-a-Service: A New Operating System for Early Stage Investing
#7I submit the central problem is that a lot of things don't scale smoothly, and figuring out what doesn't scale costs money. Discovering how to transition from 10 to 100 is easy. 100 to 10,000 might be a 9 figure problem, but everything after 10,000 is vertical growth until you hit 10M.
The other issue is that some great ideas need $10M or $100M or $1B up front. Google's TPUs are probably a 9-10 figure investment, with zero dollars income until the whole system is deployed at scale. But it becomes a money printing machine after that.
Re: Capital-As-a-Service: A New Operating System for Early Stage Investing
#8The flaw here is using the wrong metrics. Once a company has found a repeatable and growing business model, it’s trivial to raise money and there’s no reason to pick Social Capital over anyone else. The big market opportunity is to fund startups at the very earliest signs of success. When all they have to show is some code and a few Hacker News upvotes or GitHub stars. Someone is going to make YCs returns look weak b…
From my experience, most of it is about connections. I have seen $41 MM thrown at startups like Color and them failing a month later! Why just recently, FileCoin raised tens of millions from VCs, before goong on to raise $200 MM from crypto holders around the world for a product that hasn't even been developed, in a space where MaidSafe and IPFS etc. already exist. How? Because it was touted by CoinList, started by among others AngelList founder Naval Ravikant who has all the connections.
Re: Capital-As-a-Service: A New Operating System for Early Stage Investing
#9The flaw here is using the wrong metrics. Once a company has found a repeatable and growing business model, it’s trivial to raise money and there’s no reason to pick Social Capital over anyone else. The big market opportunity is to fund startups at the very earliest signs of success. When all they have to show is some code and a few Hacker News upvotes or GitHub stars. Someone is going to make YCs returns look weak b…
so which metrics are the right ones to look at?
Well, that's the billion dollar secret.
Re: Capital-As-a-Service: A New Operating System for Early Stage Investing
#10So, a bank?
Banks don't touch startups unless you have personal assets you're willing to put up as collateral.