Venture capital financing has played a huge role in the success of high-growth companies over the past few decades. Instagram, Uber, and Snapchat are just three relatively young winners of venture capital (VC). Earlier examples like Amazon, Facebook, and Google are as simple as ABC.
But will venture capital be as relevant to the Bitcoin economy as it is to the giants of Silicon Valley?
In the second episode of the CambrianSV series of debates, CoinGeek’s Charles Miller pit two heads from the Bitcoin bootcamp in Lisbon to discuss their cases and share their views on the matter. Aaron Burns, CFO of the social media platform Twetch, and Jackson Laskey, venture capitalist for Unbounded Capital, faced each other in a heated meeting.
From the start, Aaron favored a return to angel investors over VCs, insisting that venture capital would be of “very little concern” in the Bitcoin world. He pointed to the sour taste felt by many in Silicon Valley when startups worked hard just to “bring three fat cats in with a smooth conversation and get you to sign a contract and get 35% of your business.” give away for peanuts ”. If the company then fails, it is charged with returning the cash.
Jackson preceded his opening argument by noting that the room was right to criticize the way some venture capitalists, particularly in Silicon Valley, operated up to that point. Still, he insisted it would be a mistake to leave VCs out of the equation, “similar to the mistake of anyone running their own node or the mistake of” decentralizing everything “that somehow destroyed Ethereum.”
The heat rose when Jackson tried to suppress Aaron’s reasoning by stating that angel investors are the same as venture capitalists. Aaron replied quickly and proclaimed the VC industry as wolves in sheep’s clothing. or as he put it, VCs “Place bet on a million horses and they rigged the entire game for themselves”.
Charles brought the debaters back to the central question of whether the Bitcoin economy will allow startups to get rid of the need for VCs. Aaron pointed to the number of millionaires in the Bitcoin world and thus the possibility of finding investors who have a real interest in the future of those they are behind with their money. And while Jackson recognized that the lower development costs associated with building businesses in chains could enable people to generate revenue faster, that was far from the reality of turning into profitable entities.
Jackson stated that it is the job of VCs to identify companies that are less risky than the market perceives. Speaking to a room of people who have chosen to build on BSV, Jackson said, “Don’t you think everyone in the world will say this is crazy? It’s incredibly risky. You are building on an industry that is not yet established. They don’t build on the main chain. But I’m here and I know there is no risk in building on BSV … I can give you money at a cheaper price than almost anyone else. “
It seems that the risk is in the eye of the beholder.
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