- For better and for worse, the equity crowdfunding space continues to grow.
I’ve written about a lot of stuff on this personal website and blog, but the equity crowdfunding deal memos is what draws the most traffic. All of it is organic from Google. I am now result #5 and page one for Monogram Orthopaedics on Google. There are so many deals on equity crowdfunding that I have 300 emails from SeedInvest alone for deals I should/soon will write deal memos. And this is not even scratching at the surface of StartEngine, Wefunder, Republic, etc.
Markets trump all. A great market pulls the product out from the firm. Great products and great teams are secondary. In this case study, I am clearly not the best startup investor, or writer, or analyst. The hypothesis being that this market is underserved but the people are hungry for some kind of coverage, even my amateur coverage is ranking, is how I am understanding this phenemenon of total strangers from the Internet finding my stuff.
Capitalism continues to grow larger and larger, and everyone’s looking for returns. As the public markets get more interested, expectations for founders also drop due to lower sophistication for investors. Democratizing investing is a good thing, but further education so investors know exactly what they’re opting for is also ideal. Further, I myself have not netted any hard returns from startups yet, so after year 5 it’ll be great to see liquidity from this market.
2. Great products don’t make great businesses. Similarly, great businesses don’t make for great venture investments.
Quoting from Peter Thiel’s Zero to One:
This implies two very strange rules for VCs. First, only invest in companies that have the potential to return the value of the entire fund. This is a scary rule, because it eliminates the vasty majority of possible investments. (Even quite successful companies usually succeed on a more humble scale.) This leads
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