1. The end of Crypto investors is not internet celebrities
I think the end of the investor is not an Internet celebrity, just like the end of the catering industry is not an Internet celebrity shop. Investing is about making money, managing risks, and helping founders. The number of Twitter followers is of course very important, but it is not the main KPI of investors after all, and it may be useful for financing. Internet celebrity is the path, not the end.
2. Don't just laugh at Crypto VC, they have a very important role
It's good that Crypto VC is being laughed at, and it's valuable in providing entertainment value. However, the real role of this group of investors is: value discovery, capital allocation, and price discovery . Although investors have been criticized for "the threshold is too low, one brick will be smashed down and ten will be killed". But I think the more investors, the better. Only when there are enough and dispersed investors can the market be fair enough, and the subdivided tracks covered can be enough, and the founders can get money. Is it possible that an industry can only trust only a few bigwigs? Or allow some newcomers to appear, not only for ridicule, but also to participate in value discovery and pricing together?
3. Value of investors
Investing in work makes people refresh their own values. Believe in the simplest and most clumsy common sense, and you will quickly find your values. If the value is not clear, you can ask, whose money is this earned, and how long can it be earned?
The biggest feature of this industry is the bubble. If the bubble is unavoidable, at least participate in the bubble that promotes user experience innovation; instead of going in the bubble with infinitely high yields, it is the capital market. We make mistakes, and we will be tempted in the future. I will insist on reminding myself of the problem of values. 4. Restrain "over-financialization" and don't fall into the pit. Today's Web3 is over-financialized, and it is easy to realize it, especially through financial means. However, too short-term and anxious financial behavior often hurts users and eventually Hurt shareholders and the team itself.
In the process of deciding whether to invest and how much to invest, I think a company should do less "financialization" business. I hope that the income of the company I choose should be less dependent on investment and financing income. Regardless of Defi or Gamefi, start-up companies should not do too much "fi" (financial) behavior. The result of such interference and manipulation of the market will definitely have negative long-term expectations; they should provide facilities and places for others to do finance, and they should only do it themselves. service charge. Of course, this must be difficult, and there will not be many votes at once, and you can grasp the Grayscale by yourself. 5. In the first-level investment, we should not be overly entangled in track and fame, but focus on value discovery. I hope we can persist in focusing on and improving our logic of value discovery in the first-level investment. What is the inevitable trend of user behavior change? What is the Cambrian period of the rise of new species? What are the opportunities for young people to participate in Web3 without being involved?
When it comes to introversion, if young people (post-00s) have no chance, and only big bosses and big organizations make money by chartering, this in itself is very unWeb3. Therefore, I hope that we will pay less attention to words such as XXX large institutions leading the investment, XXX track is hot, etc., and to take over projects with a lot of capital. 6. In the secondary investment, I hope to place a heavy bet on the third place, do a good job in price discovery and make sure to invest in BTC and ETH. I already know that, the most difficult thing is who will be the third place in the future? This is the mark of a good investor. It should have these characteristics: 1) The product is easy to use, with a large number of users and high stickiness; 2) It represents a new mental positioning of users; 3) It has a strong, sustainable, and expandable revenue model;
4) The token itself carries great practical value.
From the perspective of price discovery, I think the third to sixth places have a chance to reach a market value of 100 billion U.S. dollars in the next cycle. Assets without this potential should be reduced or even sold. 7. The most valuable thing is not money, but the team behind it. Web3 is too close to money, and it is most difficult for the team to do things with peace of mind. Don't be afraid if you don't have money. If you have a team, you can make money. I believe in the law of energy conservation. When a group of people can endure loneliness, focus and work hard, after a period of time, this energy will definitely become a work. When the other group is noisy and speculative, eventually the energy is dissipated. The first best team is self-driven, just want to do it, maybe there is no financial burden, maybe it is love and paranoia. They can be quite irrational at times, and the team leader must have tremendous charisma and focus. For example, Brian Armstrong (founder of Coinbase) in 2014, a wild entrepreneur.
The second-best team is professional entrepreneurs with higher education and skills, and with huge short-term financial incentives, embarking on the path of innovation. For example, most of the teams in Silicon Valley have this characteristic, so that A16Z has cultivated the thinking mode of "no innovation, no money". They are professional adventurers with their own personal narrative. They're good, but they're too close to the money, and some don't have a solid business backing (like Therano).
