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Web 3.0 meets venture capital


Kickstarter’s New Crowdfunding Business… the Intersection of Blockchain and VC… Steps You Can Take Today

The convergence of government legislative changes and blockchain technology will revolutionize investing.

Those looking for financing will be able to access investors much more easily, with much less paying intermediaries (banks and brokerage houses – be careful!).

This will allow business creators to focus more on development instead of constantly seeking funding.

Likewise, investors will see endless investment opportunities which can offer huge payoffs.

This is from Cody Shirk, our venture capitalist. In its latest issue of Venture capital collection, Cody detailed this intersection of private investment and technology.

It’s fascinating to see where ‘Web3.0’ is taking our world, and exciting to know that we can be part of the funding behind these upcoming technologies – potentially creating life-changing wealth.

I don’t write “change your life” carelessly.

As Cody points out in his update, Meta (formerly Facebook) was first funded by a private investor named Peter Thiel. Thiel’s $ 500,000 seed capital grew into over $ 90 billion as Facebook grew from a small private company to a massive, publicly traded juggernaut.

Of course, Thiel had access to this early investment from Facebook because he was already ultra-rich at the time. Regular investors like you and me – maybe investing only $ 500 or $ 1,000 or so – haven’t had access to it.

Those days are over.

Here’s Cody explaining why:

Thanks to the Jobs Act, individuals of all origins now have access to some of the most lucrative investment opportunities available through equity crowdfunding.

And as our financial system moves towards blockchain technology, the floodgates are about to open …

Today, let’s take a look at the intersection of venture capital and tech, and how your place at the forefront of technology could earn you a fortune in the years to come.

*** A primer on the regulatory changes that created the opportunities we are taking advantage of today

Before we start, for the most recent Digest Readers, Cody is a seasoned venture capitalist who has completed deals around the world, which has earned him a growing list of over 1000% of venture capitalists to his name.

In its free newsletter, Venture capital collection, he shares tips and tricks on private investment … the trends he follows … even the transactions that catch his eye. Cody’s Digest is a fantastic way to take the pulse of the venture capital world.

Getting back to today’s topic, here’s Cody explaining the regulatory backdrop for today’s venture capital opportunities:

The 2012 JOBS law created new opportunities for private companies to raise capital. Two of the most notable changes were the introduction of the Reg CF and Reg A + offers…

Both types of offers allow non-accredited investors to invest in private companies.

Before the JOBS Act, to participate in private investments, investors had to prove a certain level of income and / or liquid equity ($ 200,000 in annual income or $ 1 million in equity, excluding primary residence).

These requirements excluded most of the population from participating in private start-up investments (also known as venture capital).

But as previously stated, that has now changed.

*** One of the first platforms that enabled crowdfunding funded venture capital investments was Kickstarter

Thanks to Kickstarter, companies have raised funds from private investors, called “backers”. These donors did not receive equity. Instead, there were other incentives.

Cody shows Peloton and Oculus as examples. The original Kickstarter campaigns for both companies gave early backers real product instead of equity.

Kickstarter always works this way, which means “no fairness”. But it looks like things are changing.

From Cody:

While Kickstarter still only offers backers the ability to support start-up projects through ‘pledges’, the platform is set to launch a new feature that will likely be the future of Reg CF offerings and Reg A +.

Starting this year, Kickstarter will transition to a blockchain-based platform that should allow much more scalability and options for those looking to kickstart projects and those looking to support them.

Here are additional details of Bloomberg:

Kickstarter plans to unveil a project that will merge the two worlds.

It is the emergence of an autonomous company to build a crowdfunding system a bit like that of Kickstarter but based on blockchain technology….

Today, the money that could have been spent on Kickstarter campaigns passes through blockchains in what is called distribution [decentralized] autonomous organizations or DAO.

*** What are DAOs and how do they fit into venture capital crowdfunding?

“DAO” stands for Decentralized Autonomous Organization.

As the name suggests, there is no central authority. It is a collection of individuals, pooling resources for a common purpose. These people can do this without central authority due to the open source code written on the blockchain. These rules are enforced by the network of computers running the DAO shared software.

Cody calls them “the blockchain equivalent of a Kickstart project … only much, much better.”

But as Cody also points out, a DAO is hard to understand from a dry definition like the one I just provided. An example is more illustrative.

Here he explains using a DAO called “LinksDAO”:

“The mission of (LinksDAO) is to ‘create the modern golf and country club’ and to ‘reinvent the country club’.

Source: LinksDAO

In early January, “the public strike of LinksDAO’s two NFTs – the Leisure Membership and the Global Membership – sold out within hours, generating $ 10.5 million in funds from a collection of 9,090 NFTs. “.

These two different types of NFTs will allow holders to access any golf courses LinksDAO is considering purchasing. LinksDAO’s native token, which you can invest in now, is called “LINKS”.

By switching to blockchain, investors will now have more than just a promise of a future product. They will have stores of value in cryptocurrencies or tokens linked to real investments, all on a decentralized platform!

*** How to start enjoying it all

Cody writes that the future of all investments will be completely blockchain-based.

Considering this, what is an important action step?

Well, take the time to learn more about this world – not tomorrow, but today!

And then try to find out more tomorrow, then the day after.

It means diving into cryptos, NFTs (non-fungible tokens), DAOs, how to open various accounts and transfer small amounts of money, how to sign up for crowdfunding platforms and look for investment opportunities …

Just start putting your toe in this world, because it’s the world that’s coming.

We will continue to bring you Condensed on all of these concepts in the days to come, but nothing like diving into yourself.

*** In a moment, I’ll give Cody the last word, but a little administrative note

If you have subscribed to Luke Lango’s Private transaction group, you will notice that you will receive Cody’s Venture capital investor newsletter.

To streamline our services, we combine the Private transaction group in Venture capital investor. Cody will follow the existing investments of Private transaction group, while offering you new opportunities for the future. So, keep an eye out for all the great content to come.

Getting back to today’s topic, here’s Cody to get us out:

The next step is for you to take action, so that you can be a part of this revolution.

I recommend that you familiarize yourself with cryptocurrencies… as soon as possible.

Now, I don’t mean you read about them and research them (although that’s a great idea too!) …

I don’t even mean to say you have to buy large quantities (although that might not be a bad idea either!) …

I mean you should open an account and start buying, trading and transacting with cryptocurrencies.

You can use a very small amount of capital. The goal is to get familiar with how it all works and be sure that you can trade value on the blockchain.

The easiest way to do this is to open an account with Coinbase or Crypto.com. There are plenty of other options out there, but both of these are beginner friendly.

It’s likely we’ll see some great blockchain-exclusive investments in the years to come – don’t miss them.

Personally, I see this as an extremely exciting time as real capitalism can come back to our economies. A system where the playing field is level to enable the hardest workers with the best ideas to succeed… and where investors who take risks to support these entrepreneurs can also be successful.

Have a good evening,

Jeff Remsbourg


InvestorPlace

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