9 - VC in Decentralization Flashcards
1
Q
Open finance
A
enables blockchain-native applications for everyday life
2
Q
bytes of data per day
A
2.5 quintillion
3
Q
4 problems with today’s internet
A
- Increasing cost of compliance
- Strengthening monopolies
- Centralization and loss of transparency
- lack of privacy
4
Q
Moving from app-centric to
A
data-centric
5
Q
What will web3 enable?
A
- Internet-native finance
- self-sovereign identity
- open communities (social media governed through protocols not companies)
6
Q
Global distribution of blockchain VC
A
North America 50%
Europe 20%
Asia 20%
7
Q
What % of deals in V are blockchain deals?
A
5%
8
Q
Structural specifics of crypto investing
A
- difficult to identify sustainable scalable business modle
- complex deal design (asset diversity: tokens, equity, token & equity)
- lack of “best practice”
- global deal footprint
9
Q
Legal specifics of crypto investing
A
- high regulatory hurdles
- regulatory insecurities
- lack of experienced consultants
- tax status often unclear
- dynamic deal structures (including tokens bought by vc when company cannot pay)
10
Q
Technical specifics of crypto investing
A
- token custody
- staking
- exit of token investments
11
Q
success factors in crypto investing
A
- deep understanding of technical paradigm shift and socio-economic implications
- connecting with relevant communities
- build network
- seek capital
- incorporation with regulatory clarity and consultants
12
Q
How many unicorns in world
A
50 (2 have IPO)
