Portage Partners的动态

In private markets, adverse selection is pretty hard to prove out, but, of course, manifests itself in poor performance over time. ? We thought VC crowdfunding platforms might be an interesting case study given their proliferation since the JOBS Act and broader promise to ‘democratize’ VC. ? VC crowdfunding platforms often market ‘0% management fees’ to their investors, charge the startups a placement fee, and don’t release platform level performance data of their track record. As such, these platforms are generally incented to solve for volume, not quality. ? Stating the obvious here, but disruptive startups with talented teams, when faced with the decision to (i) pay to raise money vs. (ii) partner up with a reputable, value-add brand, are going to choose the latter over the former. ?? We partnered up with our friends at Vested to sift through the data. Unsurprisingly, crowdfunded startups materially underperformed their peers with more traditional VC backing. Only ~6.8% of equity crowdfunded startups go on to raise a Series A-sized round of any kind relative to 21.8% with the traditional VC path (more below). In total, we estimate >$1.7 billion (and counting) in individual investor capital has been exposed to adverse selection via VC crowdfunding platforms... ? What’s the takeaway? ? To quote the legendary investor Charlie Munger…"[i]f you have a dumb incentive system, you get dumb outcomes." Read the full piece here ??: https://lnkd.in/eacAEu-Z