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@mrjasonchoi How do you source the authenticity of a VC? Funds pooling is a trending topic now, it’s hard not to not feel convinced and compelled to join liquidity pools. So how do you fish out true motives of such VC’s?
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Founders should be aware of the VC ponzi scheme.
This is widely known in Web 2, but more egregious in Web 3 imo.
It happens like this:
- VC sprays $1m checks in $20m seed rounds
- Pressures founders to raise at $100m prematurely
- Puts in $1m in the follow ons
- On paper, the original $2m investments are now worth $6m a pop (3x MOIC) before dilution
- Rinse and repeat for as many portcos as possible
- Shows paper mark up to fomo LPs
- Raises more funds on paper marks
- Milks 2% management fee
This is the VC business in a nutshell, and a huge reason why @tangent_xyz is all internal capital and not structured as a VC fund - to avoid incentive misalignment.
We cannot profit from paper gains; we only make money if we actually make the right investments.
Obviously, not every VC fund is like this - there are many smaller ones that are highly opinionated, and a few bigs ones that are deeply selective and net positive for the space.
You will find them in many cap tables we are on 😉
But a vast ocean of middling funds try to run this scam, especially those who are underperforming and desperate for returns.
Founders should always question their VC's motives when they pressure for earlier and bigger rounds.
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"Curiosity is the beginning of knowledge. Action is the beginning of change."
-@JamesClear
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@Crypto__Diva You’re going to be broke soon, crypto can’t save you😂😂😂😂. I want Argentina to win but it doesn’t hurt to get some free money if they don’t.
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Football is a beautiful game!! Stack your chips with the right team.#Argentina
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Some people will see this and be claiming some other player is the greatest. I’m not calling names but my case has substance and this is the merit to prove it. #GOAT 💪🏾
LM10 🇦🇷@vatiowns
@sportbible There is no ‘debate’ 😭😭🤡
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Mbaka attacked Peter Obi and lost his Adoration Ground
Wike attacked Peter Obi and lost the Primaries
Ike Ekweremadu attacked Peter Obi and got arrested for Organ Trafficking in the UK.
It seems this Peter Obi movement has become spiritual. 😹😹
#PeterObi2023 #PeterObi4President
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@Ptahdaboss nani alikua anaweka Kibao kwa chupa ya CIROC ?
Richard Wambura 🇹🇿@IamWAMBUX
Kuna house party nilichukua chupa empty ya Hennessey nikaweka Valeur nyingi, Mademu walikuja na standards, ila bila kujua walikunywa na party ilibamba sana.
Indonesia

There’s a difference abeg. Barcelona own na first come first collect🤣🥺
FootballJOE@FootballJOE
Barcelona fans watching Bayern Munich win 8-2 ⁽ᵒⁿ ᵃᵍᵍʳᵉᵍᵃᵗᵉ⁾ in a Champions League game
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