I’m learning a lot about Venture Capital and look to join a venture / hedge fund.
The short answer:
To learn to be a successful investor and generate capital gains as a result.
While there are many other ways to generate capital growth, I choose to focus on tech. That’s because this type of asset is interesting to me, and has proved to be one of the best ones to hold over the mid-long term.
The long answer (and why Blockchain specifically):
I find tech investing interesting because I’m obsessed with capitalism, and think technology is the most exciting and valuable asset on our planet. I admire entrepreneurs and look at them as superhumans. There’re so many things to learn from them, so getting to work with them and invest in their success is a unique privilege.
With that said, I admire entrepreneurs who choose to bootstrap their own business without external backers. This way, their business cannot “fake it till it makes it,” and the most unique company cultures are formed (see Jason Fried‘s Basecamp and Derek Sivers‘s CD baby).
To me, Blockchain is the most exciting innovation layer of the internet in the last 10 years. I spend most of my time focusing on learning and exploring new projects in this space.
Within Blockchain, I’m mostly interested in new behaviors and possibilities the distributed ledger tech in enabling. An excellent example of that is DAO(Decentralized Autonomous Organization). I wrote a blog post about it, and on one of its potential use cases to significantly affect governance in our daily lives.
My thesis in Blockchain focuses on enabling fundamental behaviors that didn’t exist before, thus creating an enormous value potential to disrupt existing (centralized) financial systems. I think privacy is a feature but not a product because copying existing applications (e.g., Facebook, Gmail) to privacy-oriented versions isn’t enough to disrupt the distribution models these incumbents have created.
Creating independent decentralized networks with strong incentive alignment among its stakeholders is the key to success in the long term (MakerDAO, Numerai, Decred, and more).
That incentive system is required to keep the protocol secured and autonomous. That is only possible by having its stakes engaging in the network and contributing to its governance and technical development.
To me (as a Growth Marketer), the beauty in Blockchain is that growth cannot be faked (like with some Web2 companies). Reason for that is these networks are measured by real engagement and participation. This engagement must be genuine and regulated by things like developer engagement (commits on GitHub), staking rate, governance, transactions rate, and more. You cannot acquire your users via paid ads.
If growth is faked, it can be spotted, and the community will realize very fast if the network is genuine or not. For that, reputation plays a significant role in this space, both off and on-chain.
In an exciting feature, you could learn and verify anyone by looking at his online profile. You could just trust your computer.
Zooming out, I believe a transformation in money is likely to happen soon, even though it is highly dependent on regulation. Bridging the gap to the uneducated is the key to success, and the networks that will be able to do so will win in the long term.
Investing in these protocols requires identification of economic opportunities to enable things that weren’t possible before. Some teams have started to work on that, and I cannot be more excited to see the fruits they will deliver over the next decades.