crowdfunding and the future of venture capital by nick tommarello at startup istanbul 2015
TRANSCRIPT
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Nick TommarelloFounder & CEOWefunder
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Nick TommarelloCEO & Founder, Wefunder
Crowdfunding & The Future of Venture Capital
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We help everyone around the world invest as little as $1000 in curated US startups
About Wefunder
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2015 Stats
• 45,000+ users
• 30% of our investors are international
• Invested $13M+
• Funded over 110 startups
• Biggest Win so far: Zenefits Our invested: $10M valuation in 2013 Current Valuation: $4.5 billion (300x return to date)
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Current State of the Industry
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How it Works
• AngelList, FundersCLub, & Wefunder are the main players
• These three took away all downsides – no adverse selection
• Acts like a big angel investor
• Typically $200k-$500k
• Tops off a round at the end
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Not Yet Very Innovative
PROS:• The wealthy outside of Silicon Valley can invest in startups with a potential to be $1b+
• $1000 minimum instead of $100,000+
CONS:• 99 investor limit• Can’t advertise (usually)• An Accredited Investor
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The Future
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Wefunder was founded to help everyone invest as little as $100
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Lobbying the Government
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Wow. It Worked.
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Still waiting…
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• Unaccredited Can Invest (with exceptions) • Small businesses • Very very early stage, <$100k • A late-stage startup crowdfunds just prior to IPO
• Accredited Market: • The 99 Limit Goes Away • Platforms start leading Series A
2016 Predictions
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Public Companies
“Very Risky… So Be Wealthy”
Private Companies
“Enron Must Never Happen Again”
Huge Regulatory Burden
?
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Public Companies
Private Companies
“Enron Must Never Happen Again”
Huge Regulatory Burden
Public/Private Hybrid“Expect lots of risk… so invest < 10% of your
income.
“Very Risky… So Be Wealthy”
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How is Venture Capital impacted?
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What happens when crowdfunding delivers $5+ Million in 24 hours?
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How can more Moonshots be funded?
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What happens when we “train” more founders?
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What happens when we “train” more investors?
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What if 30 world-class Artificial Intelligence experts can create a distributed VC firm… in 1 day.
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We’re all going to be VC’s
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