Most of the technology world is funded through venture capitalists. They are a vital part of our technological advancement over the last 30 years. It is they who are willing to take the risk on start up projects that are nothing more than an idea and have a great chance of failure.
In this video I discuss how the system has a major issue in that a time always comes when the interests of the investors goes against the experience of the users. Because of the need to monetize, often the user experience diminishes. This can often kill projects just as they are starting to find their legs.
Through tokenization, we have the ability to expand the crowdfunding idea. We can tap into interested users and have them participate in the funding process. Tokenization eliminates the conflict that ultimately arises since users are the investors.
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BEER.Interesting take on venture capitalist. While I can envision what you are saying, I do not think venture capitalist are going away. There may be a split between whether projects take either approach. After all, these projects will choose whichever model works for them.
Universal tokens are another way to build crowd funding and I agree with that. My question is whether projects will choose normal investors over venture capitalists? I do not see it going away for many projects if they are given the choice.
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STOPTrue, I had a few startups worthy of venture capitapl but we didn't take it. We wanted to be in completel control of the profect. We didn't permission to pivit and we really would care if we failed, but our venture capitalists sure have been money. The worst thing about taken money and failing is then you are the guy who lost the other guy's money. That is not a good reputation. We wanted to do it ourselves, fail ourselves, rise again an then let them beg us to let them in. It changes the power relationship. We luckily didn't fail and get to keep all the shares.
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Summary:
In this video, the speaker discusses the evolving landscape of funding models in the tech industry, contrasting traditional venture capitalist funding with the potential of crowdfunding and cryptocurrency-based self-financing. He emphasizes the role of venture capitalists in driving technological advancements but also points out the conflict that can arise when the interests of users and investors diverge. The speaker suggests that the cryptocurrency industry offers a new avenue for self-funding projects through tokenization, enabling users to become investors and active participants in the success of the project.
Detailed Article:
The episode delves into the dynamics between venture capitalist funding and alternative models like crowdfunding and self-financing in the tech industry. The speaker highlights the traditional role of venture capitalists as the primary financial backers for technological development, citing prominent examples like Facebook and Snapchat that started with VC funding. Although venture capitalists play a crucial role in assuming risk and supporting early-stage startups, the speaker points out the downside where user interests may take a backseat to investor returns.
The discussion shifts towards the emerging trend of crowdfunding and the potential of cryptocurrency and tokenization to revolutionize the funding landscape. By tapping into user communities and leveraging blockchain technology, there is a vision for users to directly fund and invest in projects through tokens. This approach aims to align the interests of users with the success of the project, as opposed to traditional VC funding where investor ROI often takes precedence over user experience.
The speaker envisions a future where users become active participants, investors, and promoters of projects through token ownership, governance rights, and utility within platforms. This user-centric approach aims to foster a symbiotic relationship where user engagement and satisfaction drive the project's success, ultimately benefiting token holders. By cutting out the middlemen, such as venture capitalists, users have a greater stake in the project's success and are more incentivized to contribute to its growth and development.
Furthermore, the video explores the concept of creating and distributing tokens to finance projects, empowering users to have a direct impact on the project's direction and success. By involving users in the funding process and integrating token economics, the speaker suggests a more organic and sustainable funding approach that prioritizes user experience and engagement.
In conclusion, the episode prompts viewers to rethink traditional funding models and consider the potential of self-financing through tokenization in the cryptocurrency space. By involving users as investors and active participants, there is a shift towards a more collaborative and user-centric approach to funding and developing projects. The speaker encourages reflection on the balance between investor ROI and user experience, offering a new perspective on the future of funding in the tech industry.