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by wallacoloo 1772 days ago
So this is like synthetic stocks, but only for (illiquid) startups, and gamified?

It’s hard for me to tell what value my “investment” in any of these fantasy startups creates. I would much rather invest directly in the startup, where my money can be visibly put to use by the startup to help realize their goal.

2 comments

Your investment creates no value, this is less like synthetic stocks, and more like horse track betting. Just like with betting, you bet on some companies (horses). The bets then go into a pool (of which visionrare takes 20%). Based on the performance of the company (or horse) you pick, you get paid from the pool.

I'd be surprised if this didn't get regulated as gambling if a government watchdog decided to look into this.

It is indeed a lot like synthetic stocks, but for private companies. This brings quite some complexities along in terms as how to value the companies even if just relative to each other. To help solve that we're partnering with startup data providers and are building scoring algorithms.

If you have enough money and access to deals, it is undoutably better to invest in real equity. However, through our game we aim to empower people that don't meet that description to learn, have fun and become micro-backers of companies they believe in.