I'm not sure what the proper etiquette (lot of upvotes but no one including pg has responded here) but I'd certainly be interested in a discussion around crowdfunding.
My take on this:
Crowdfunding will be hard to execute -- novice investors, multiple sources of bad advice, selection biases (the worse companies will attract the 'worser' investors).. the list goes on.
With that said there is a lot of genuine interest in the model and there are bound to be atleast a couple of platforms that get traction . If you were YC with access to pick the best possible team to make this happen -- why wouldn't you invest ?? Its such a small portion of your investments and you get that diversification.
Second does not matter what your personal convictions are, the only way to know for sure is by trial and error -- who knows crowdfunding maybe the model of the future.
Finally you are supporting a good cause -- there is a lot of populist rage against the investor class (not VC's in particular but more wall st types),, allowing companies to go around 'wall st' and giving the lay person a chance to be a part of the next facebook is a great story.
"giving the lay person a chance to be a part of the next facebook is a great story"
Not necessarily lay person. For example maybe a world-class database technology expert in Russia wants to invest some thousand dollars into a database technology startup. Maybe he has more understanding about the technology/market than so-called 'experts' (Sillicon Valley investors).
That begs a couple of interesting questions regarding how crowdfunding LPs will be able to add value to their investments, and what companies will be inclined to disclose.
At the onset of crowdfunding, less sophisticated transaction arrangements are likely to not prioritize those two scenarios. But it makes sense when we think of crowdfunding at its maturity.
Comments
I'm not sure what the proper etiquette (lot of upvotes but no one including pg has responded here) but I'd certainly be interested in a discussion around crowdfunding.
My take on this: Crowdfunding will be hard to execute -- novice investors, multiple sources of bad advice, selection biases (the worse companies will attract the 'worser' investors).. the list goes on.
With that said there is a lot of genuine interest in the model and there are bound to be atleast a couple of platforms that get traction . If you were YC with access to pick the best possible team to make this happen -- why wouldn't you invest ?? Its such a small portion of your investments and you get that diversification.
Second does not matter what your personal convictions are, the only way to know for sure is by trial and error -- who knows crowdfunding maybe the model of the future.
Finally you are supporting a good cause -- there is a lot of populist rage against the investor class (not VC's in particular but more wall st types),, allowing companies to go around 'wall st' and giving the lay person a chance to be a part of the next facebook is a great story.
My 2 cents. Thanks
"giving the lay person a chance to be a part of the next facebook is a great story"
Not necessarily lay person. For example maybe a world-class database technology expert in Russia wants to invest some thousand dollars into a database technology startup. Maybe he has more understanding about the technology/market than so-called 'experts' (Sillicon Valley investors).
That begs a couple of interesting questions regarding how crowdfunding LPs will be able to add value to their investments, and what companies will be inclined to disclose.
At the onset of crowdfunding, less sophisticated transaction arrangements are likely to not prioritize those two scenarios. But it makes sense when we think of crowdfunding at its maturity.