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Like many people, part of my “daydream” was that after starting/selling companies, if that really worked out, I could get into Venture Capital. Maybe one day I would be like one of those investors we all know…
I love investing, and tech, and plus despite the hard work it seems like a fascinating way to spend your time and earn a great living.
The problem is, of course, there are huge barriers to entry…
Over 80% of venture capitalists in the US are men and 70% are white
40% of the industry coming from just two academic institutions: Harvard and Standford
There are other options, of course.
I can become an angel investor (which requires a large amount of personal capital).
I could work on Wall St. or in Investment Banking.
And, the broadest option is to simply invest in public markets.
This is the lowest barrier to entry option and necessitates the least amount of capital. Today trading is free and you can buy fractional shares.
But what if you could have all of the upsides of a VC, with all of the liquidity of a Public Market Investor, without any barriers to entry or accreditation?
With cryptocurrency and protocol investing I now feel like there is a third way available, and it’s open to everyone.
Not VC/Angel, not public market investor or investment banking… But crypto investing in an open, public, permissionless, liquid market that trades 24/7.
In this market, who you know isn’t the only alpha.
In this market, you can participate without permission from anyone.
It is true that you will be trading against the world, and the world will have incredibly sophisticated players in it, with less regulation and safety nets (at least for now).
However, given how many people are changing their minds 12 years later about Bitcoin and crypto…
It tells me that there is still a massive amount of opportunity for investors who have a deep passion, interest, and fortitude to define their own investing career within the world of cryptocurrency.
It’s a mix of venture and public equities, with a whole slew of new things to learn.
The norms are still being set, we don’t even know how to value protocols properly yet.
And, incredibly… I feel like I ALREADY am doing what I would have been dreaming about.
I don’t have to wait to someday be picked, or work my way up to get into VC.
I’m investing today.
Will I be successful? Will the market continue to grow? Who’s to say.
But there is no doubt that I am making similarly asymmetric bets as a VC would, just with more immediate liquidity, and less need to work my way up through a system.
Even if this market isn’t for you, you have a new option now.
New financial products will emerge, as will companies that are available to invest in.
No VC/Wall Street experience necessary.