Bear Market Update: Equity is Sexy Again - (Ep. 0018) from The Nomics Update

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Clay Collins

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Bear Market Update: Equity is Sexy Again - (Ep. 0018)

6 minutes Posted Dec 31, 2018 at 5:56 pm.

] not token projects. Although, I haven't seen a lot of token projects getting funded recently, and it seems like the pendulum has swung so in 2017 investing in crypto assets like folks were doing that Andreessen Horowitz was doing it, Union Square Ventures was doing it, other folks were doing it that are not as notable to the media but might be so interesting investors and funds and stuff.

] But what I'm seeing getting funded as of late are companies again, and I'm even seeing examples where funds that were created to invest in crypto assets are now in some cases preferring investing in equity and I think there's a few pieces to this. The first is that equity is sexy again, [00:01:30] equity comes with control or at least voting rights in some cases, it comes with you know if you're a lead investor and you can negotiate the deal, it comes with board seats, and all kinds of things. 

] or projects with live products is back. We've seen a lot of companies raise a lot of money and ship nothing, and we've seen examples of, like basis returning funds back to their customers, I think we're gonna see a lot more, a lot more of that, token projects or at least projects with tokens returning funds back to investors because of [00:02:30] regulatory friction and they can't launch what they thought they were going to launch in a whole bunch of stuff along those lines. I saw a report yesterday, I won't get into that. 

] That's back in revenue from delivering a products, not from holding a token in a treasury that's investors have bought because around the promise of the future delivery of something of value, but investing companies with their products is back. 

] can't tell you the number of crypto projects I see where the list of team members and it looks really fancy on the surface. So you might see that a bunch of the team members or ex-Coinbase, ex-Google, ex-Airbnb, something similar to that and then you dig into it a little bit more and find out that the Coinbase thing was an internship, and the Google thing maybe they were a project manager [00:04:00] on some experimental team for nine months, and the Airbnb they were I don't know, they were in product. And maybe that was one and half years but certainly never shipped a production line of code, never was responsible for generating bottom line sales.

] funded. From my vantage point those folks aren't getting funded anymore, which is not surprising and probably how it should be. But there's lots of things . . .

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It's me reporting you live from the depths of the bear market in the space, and I've been talking to a bunch of investors recently, I mean, I guess that's what I do all day for the most part. But, I am reflecting on the kinds of companies that are getting funded here recently, like companies that are getting funded [

[

So I think the first thing that I'm seeing is that equity is back, if the company ever sells you can get a piece of that. I think the second thing I'm seeing is that investing in companies with [

So anyway I think investing in companies with live products that people can use and see, I think that's back. I think the third thing is that investing in companies with revenue, with actual revenue holy crap. [

Finally, investing in teams with real experience is back. I [

So there's a whole bunch of people that looked like that, that were on teams of maybe you know founding teams of five or six that were getting [

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