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Tell me why my Crypto Startup idea won't work

news.ycombinator.com

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Re: Tell me why my Crypto Startup idea won't work

#31

Post by bidirectional »

minasmarios wrote: post #24
brudgers wrote: post #21

Why would a startup want this? How is it better for a startup than ordinary currency? How is it better for a startup than experienced investors? How is it better for a startup than common investment vehicles? What is the obvious business case for the additional complexity and potential legal land mines?

The goal is to make anyone able to invest in a listed Startup.

But why? Unlike with a public company, startups have needs from their investors beyond just cash. VC firms aren't just wallets, they provide services, access, networking, support etc.

Re: Tell me why my Crypto Startup idea won't work

#32

Post by junippor »

Could you clarify how this has anything to do with crypto?

It seems to me that you're acting as a fundraising platform: people give you money, you pass it on to startups, and you guarantee these people that they own some equity in the startup.

The concept of "own some equity" is a legal concept, and this is what you have to nail down. Crypto is irrelevant to this conversation.

Re: Tell me why my Crypto Startup idea won't work

#33

Post by minasmarios »

junippor wrote: post #32

Could you clarify how this has anything to do with crypto? It seems to me that you're acting as a fundraising platform: people give you money, you pass it on to startups, and you guarantee these people that they own some equity in the startup. The concept of "own some equity" is a legal concept, and this is what you have to nail down. Crypto is irrelevant to this conversation.

Instead of money, just Crypto. So early Startups/ Projects get funded as fast someone sends'em some coins. And the investors to be nerds/ crypto investors and can invest them on startups.

So the value is Startups will be really easily funded, fast and by anyone, disregarding the regulations and limits for fundraising with conventional money.

Re: Tell me why my Crypto Startup idea won't work

#34

Post by minasmarios »

bidirectional wrote: post #31
minasmarios wrote: post #24

Earlier quoted context omitted.

The goal is to make anyone able to invest in a listed Startup.

But why? Unlike with a public company, startups have needs from their investors beyond just cash. VC firms aren't just wallets, they provide services, access, networking, support etc.

This would skyrockets the small investments on early stage projects -> more projects would grow -> they go to VCs when ready

Re: Tell me why my Crypto Startup idea won't work

#35

Post by junippor »

minasmarios wrote: post #33
junippor wrote: post #32

Could you clarify how this has anything to do with crypto? It seems to me that you're acting as a fundraising platform: people give you money, you pass it on to startups, and you guarantee these people that they own some equity in the startup. The concept of "own some equity" is a legal concept, and this is what you have to nail down. Crypto is irrelevant to this conversation.

Instead of money, just Crypto. So early Startups/ Projects get funded as fast someone sends'em some coins. And the investors to be nerds/ crypto investors and can invest them on startups. So the value is Startups will be really easily funded, fast and by anyone, disregarding the regulations and limits for fundraising with conventional money.

Again, the limitations with funding with money aren't a tech problem. The limitation aren't "regulations", or how "fast" you can send money. They're a legal one. There's literally no obstacle in wiring some startup some money. Where an obstacle DOES exist, is in you being able to credibly defend a claim on that equity in a court.

Imagine the following situation:

You: "I own 10% of the startup"

Judge: "You have no contract that proves that...."

You: "But I sent crypto instead of money!!"

Judge: "Oh in that case...!"

It's like when the word "crypto" is involved, people immediately surrender any critical thinking :-|

Re: Tell me why my Crypto Startup idea won't work

#36

Post by Melting_Harps »

imtringued wrote: post #23
Melting_Harps wrote: post #20

> Everyone here loves crypto (and have some) and loves startups too. Not true at all, many here on HN are openly hostile towards it because they dismissed it at the time while others were made obscenely wealthy. Whether they own some is probably true, though. > I want to create a coinbase for startup equity. Translation :you invest small sums of your cryptos in a startup of your choise. First, you don't want to be th…

>Not true at all, many here on HN are openly hostile towards it because they dismissed it at the time while others were made obscenely wealthy. I won't mince my words. People hate cryptocurrencies here because they are shit, the technology is shit. The only reason anyone buys Bitcoin is as you said, because they want to become part of the pyramid scheme.

> Everyone here loves crypto (and have some) and loves startups

I rest my case:

> I won't mince my words. People hate cryptocurrencies here because they are shit, the technology is shit. The only reason anyone buys Bitcoin is as you said, because they want to become part of the pyramid scheme.

With that said, show me another payment rail-system that can do what LN does and I can settle and pay for things in real time instantly and for no cost at any time, on any day and I'll be open to agreeing with your point.

Except I already know you can't, and what many of you think is 'vaporware' actually works; just check out a DJ set in front of the San Francisco Mint that used Bitcoin to pay the DJ and the music producers in real time in with a 10%-90% split. And amyriad of other services mentioned in that substack.

Just because YOU don't use it, and have no use for it doesn't mean it's 'shit' it just means you can't or don't have any usecases for it and nothing more.

[0]: https://lightninglabs.substack.com/p/streaming-sats-why-bitc...

Re: Tell me why my Crypto Startup idea won't work

#38

Post by cableshaft »

throwaway4good wrote: post #28

"Everyone here loves crypto (and have some) ..." Hahaha ... I think you are new to HN.

Yeah no kidding. Based on my reading the comments of other crypto posts on here it seems like 80% of the people here hate crypto and like 5% are in favor of it (the rest being neutral).

Re: Tell me why my Crypto Startup idea won't work

#40

Post by brudgers »

minasmarios wrote: post #24
brudgers wrote: post #21

Why would a startup want this? How is it better for a startup than ordinary currency? How is it better for a startup than experienced investors? How is it better for a startup than common investment vehicles? What is the obvious business case for the additional complexity and potential legal land mines?

The goal is to make anyone able to invest in a listed Startup.

Why would a startup want just anyone as an investor?

You have a two sided market. It needs to attract both investors and startups to be a legitimate vehicle.

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