This seems like a non-answer to me. There is still the problem that "For startups, having large numbers of investors is bad, and having inexperienced investors is bad." Even in the FC model of being a mutual fund, there are still lots of investors, and they are still inexperienced.
A much more satisfying answer would be along the lines of: "I don't want the startups I fund to be croud funded because I believe they wont get the support they need, however I have no problem personally funding a company which manages the crowd-funding movement because that could be profitable"
I suspect pg is suggesting that start ups don't need the distraction of dealing with a large number of investors directly. It seems FC solution is to combine and handle the "investor relations" for the crowd of investors.
Maybe you didn't understand it. With the FC model there's an extra node inserted into the graph. FC has lots of investors, but the companies they invest in only get one more: FC.
At the edge a synthetic LP/GP strucure seems to be implied.
Mutual fund principals don't typically do hands on work;
presumably FC have a hands on principal? In any event, this is an interesting puzzle to solve.
Comments
FC aggregates the investors the same way a mutual fund does.
This seems like a non-answer to me. There is still the problem that "For startups, having large numbers of investors is bad, and having inexperienced investors is bad." Even in the FC model of being a mutual fund, there are still lots of investors, and they are still inexperienced.
A much more satisfying answer would be along the lines of: "I don't want the startups I fund to be croud funded because I believe they wont get the support they need, however I have no problem personally funding a company which manages the crowd-funding movement because that could be profitable"
I suspect pg is suggesting that start ups don't need the distraction of dealing with a large number of investors directly. It seems FC solution is to combine and handle the "investor relations" for the crowd of investors.
Maybe you didn't understand it. With the FC model there's an extra node inserted into the graph. FC has lots of investors, but the companies they invest in only get one more: FC.
At the edge a synthetic LP/GP strucure seems to be implied. Mutual fund principals don't typically do hands on work; presumably FC have a hands on principal? In any event, this is an interesting puzzle to solve.