Collectivizing Finance

On a recent Acquired episode, Multicoin Capital VC Kyle Samani points out why VCs have far greater risk-tolerance to make moonshot bets with tokenized web3 companies than they do with non-tokenized web2 companies: web3 VCs can always sell off the tokens, typically after a vesting period of a year. Where traditional VCs see most of their struggling ... See more

To put that another way, Venture Capital has always treated LPs as their customer and their investments as their product while ignoring that in a two-sided marketplace, value can easily move the other way. What if the Limited Partners, the funders, were actually the product that Venture Capital could sell to founders at startups to win deals?

One answer is what we might call a work-to-play model, in contrast with the traditional concept of ‘pay-to-play’. Instead of valuing LPs who can give the most money—an easy commodity for many founders in an overcapitalized environment—syndicates could work to value those who can actually contribute ideas, expertise, and work to support the companie... See more

All of this brings us back to the realization with which we started. Alongside investment DAOs and art communities investing jointly in single works, SushiSwap and PartyDAO mark an inflection point: the point where we’re starting to collectivize finance. If the traditional VC model is to maintain power and success, it will not be against but within... See more

What would a syndicate look like that could actually get great angels to join and leverage their talents to win competitive deals? Would it even look like a syndicate?

In other words, tokenization enables collectivization. It enables community. If you assume Web3 is the future, then you have to assume that Web3 is the future of investing. And in Web3, multiplayer investing is the default.

In contrast to the democratization of finance, which leaves retail investors to their own devices, the collectivization of finance brings investors together to support each other and a project, and in so doing, to increase the probability of success. Collectivization is about the group working together towards a shared objective by giving each othe... See more