Rosenthal: Crypto projects bootstrap resources by issuing tokens instead of cash
David Rosenthal · David Rosenthal and Ben Gilbert – Acquiring an Industry. Venture is Eating the Investment World 1 (Capital Allocators, EP.229) · Jan 3, 2022 · at 55:40
Acquired co-host David Rosenthal explains how token incentives alter the capital requirements of early-stage company building compared to traditional VC.
0:00 / 0:24exact quote · 24.3s
720p mp4 · rendered on demand · StarZero watermark
“Because in crypto, you can bootstrap resources. Like, you can incentivize players in your ecosystem to participate by rewarding them with the project itself, like tokens in the project itself. You don't need to go pay somebody to do something. And that applies from partners, customers, participants, even down to employees.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from David Rosenthal
Rosenthal: Bad timing, not bad models, killed dot-com startups
“And the reality was that was all wrong. It was just timing and exogenous factors that made that not work at the moment.”
Rosenthal: Entry price does not matter in early-stage venture capital
“If you're just buying options at early stage venture, then price doesn't matter. Then you want to have as many shots on goal as possible. You want extreme volatility and long tails, right? All the stuff that you don't want when you're buying a series of cash f…”
Rosenthal: VCs must back high-profile failures to capture extreme upside winners
“I want to be in the big blow-ups because it means I'm chasing volatility, and that means I'm going to get into huge winners as well.”
Rosenthal: Y Combinator proves early-stage VC scales because founders avoid help
“Well, it turns out there's a whole class of entrepreneurs, a large percentage of them that don't need or want your help. So I would actually push back. I think it actually can scale quite well. Y Combinator's a perfect example of this. They've done thousands a…”