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by phlux 5553 days ago
So I guess the counter is that there is limited liquidity, or lack of access, or frozen capital?

If the capital was unlimited, then why dont we have more open funds.

Further, if we really thought that capital was unlimited, would we think that ideas were worth nothing?

If there was unlimited capital then why not have kick-funds of say, $10,000, to simply see effectively any idea to MVP/POC?

Isnt this what YC was, a 15K seed injection to determine the validity of an idea? No, it was a 15K seed to determine the validity of FOUNDERS.

But I do think we need easier access to capital, I just dont think it is unlimited -- or maybe its access is governed by fear.

1 comments

There is no such thing as limited liquidity, it's all based on the perception of value a currency has!

Since currencies are no longer backed by gold, a national bank, f.e. the FED, can print as much money as they want. However, an excess of available money of course leads to its devaluation on the markets.

Nevertheless, there will never be a huge availability of VC money. There are just more easy ways to profit than high risk investments.

And no, no one is gonna back just every idea, that would be silly and lead to nothing.

I think access is also based on perception only. If you think an idea will work and if you believe it can, you'll invest. No one can be sure, it's still a little bit of gambling. As an entrepreneur, you gotta know how to sell your idea, perception counts...

I guess limited liquidity is the wrong term, and I meant limited availability -- or maybe restricted/filtered availability. There is tons of funding available should you have an idea good enough and/or the skills to convince others your idea is fundable.