Investing in Startups: History, Evolution, and New Funding Options | Andy Bromberg
This article is a summary of a YouTube video "Andy Bromberg - Startup Investor School Day 4" by Y Combinator
TLDR The video discusses the history and evolution of venture capital and angel investing, as well as the emergence of new funding options like ICOs, and emphasizes the importance of being professional and cautious when investing in early-stage startups.
Angel investing can be complicated, but it's worth investigating for potential tax benefits and being professional and rigorous in portfolio construction is key.
Venture capital has a long history, with the emergence of recognizable venture funds in the 1940s and 1950s, and the trend of more capital being available to startups as it becomes cheaper and easier to invest in them.
In the 80s and 90s, the rise and fall of technology IPOs and venture capital funding led to boom times and market crashes, but new structures emerged in the 2000s making it easier to start a company.
Anyone can invest in early-stage startups through ICOs and equity crowdfunding, but caution should be exercised due to the newness of the industry.
Filecoin aims to decentralize file storage using a token and incentive model, with verifiers and miners ensuring reliable storage without a central party.
Investors should exercise caution when investing in ICOs, evaluate the technology and team, and consider following reputable investors for access to diligence notes and faster liquidity.
Looking at past trends and thinking critically about the future is crucial to understand how the venture capital and token industries will evolve, with potential changes to the SAF and regulatory concerns for ICOs.