Chasing a Perfect Storm

Posted on August 3, 2018. Filed under: Uncategorized |

Every few years a deep change in technology, capital markets, society, or regulation catalyzes meaningful flow of power and value from large incumbents to new market entrants. These catalysts are the lifeblood of venture capital returns and the beginning of every thesis I have ever had as an early stage technology investor. As a general rule, my approach is to look for the “native” systems and companies created in a catalyst’s wake that could not have existed prior to it’s occurrence. These native systems are the purest expression of the underlying change and are often the most valuable when they grow up. Today, we are in a moment of deep flux. As of October 2017, it is possible that not only has a single catalyst emerged along one of the above axis, but rather that we are in a perfect storm where deep change is present in all four of these catalyzing realms, simultaneously.

From a technology standpoint, the advent of blockchain technology looks like a fundamental development that has and will enable multiple $10B+ market cap systems to develop where they could not have previously. Recent technical catalysts on the magnitude of this development might include the advent of social networking technology in 2002 (~$1 Trillion of value creation/capture), the development of the iPhone and mainstream mobile computing in 2007 (well over $1 Trillion of value creation/capture), and not much else.

This technical breakthrough not only challenges the large, centralized incumbents that dominate the technology landscape today, but importantly also the capital markets that surround them. A new financing mechanism, business model, and organizational structure has emerged around blockchain technology, known as tokens, and their issuance and behavior has impacted the early stage capital markets on as fundamental a level as, say the accelerator model and Y-combinator did in the early 2000’s. Venture Capital firms, hedge funds, angel investors, and entrepreneurs are reeling and reorganizing in response to this development and new entrants are capitalizing on de novo market positions built from scratch for this new reality.

From a societal perspective, both domestically and internationally, bottom up dissatisfaction and lack of trust in the powers that be, coupled with modern communication tools assisting in self organization and public communication, has led to a state of social instability. Tensions between the “haves”, the “have nots”, and the “used to haves” are at a boiling point and existing societal systems and infrastructure are being challenged daily and with ever increasing veracity. Further, we have entered a “post truth” world where we can no longer take an image, a public figure, or a piece of content at face value. Many of the upstack systems built on a premise that facts exist can and will be rewritten. The crowd, whatever faction of which you choose, wants change and increasingly has the tools to exert force against our organizing systems, namely private enterprises and government structures. These tools, to date, have largely been social media and messaging platforms that have organized and amplified voices, whereas Blockchain represents a new ability to align and coordinate economic force within these now networked and organized segments of the population. With coordinated information, behavior, and economics, incumbent challenging ideas, movements, and services stand to accelerate the flow of value toward new entrants and those that finance them.

From a regulatory standpoint, the United States has an administration that is ripping up the carpet on which we have stood for over almost a decade. Value promises to change hands in highly regulated arenas such as insurance, healthcare, transportation and energy, as well as tangential markets that feel the ripple effects of administrative 180s. In addition, new regulation around capital markets and cryptocurrencies is being written and defined in real time. Decisions made here will have a profound effect on the early stage capital markets, themselves, as well as the very formation of entities that birth new technology.

Exciting times!


Read Full Post | Make a Comment ( None so far )

Recently on Jordan Cooper's Blog: startups, venture capital, etc...…

On $80M Series A rounds…

Posted on July 11, 2018. Filed under: Uncategorized |

Team Design

Posted on May 10, 2018. Filed under: Uncategorized |

Amazing people

Posted on April 25, 2018. Filed under: Uncategorized |

Is this bear ever gonna hibernate?

Posted on April 19, 2018. Filed under: Uncategorized |

Society is Breaking

Posted on April 11, 2018. Filed under: Uncategorized |

Hack: Ethereum vs. the NRA

Posted on February 23, 2018. Filed under: Uncategorized |

Out on a limb

Posted on February 15, 2018. Filed under: Uncategorized |

Bubble-Gazing in San Francisco this Winter

Posted on January 2, 2018. Filed under: Uncategorized |

What Wall St Wants

Posted on December 14, 2017. Filed under: Uncategorized |

Falling in love/hate with Telegram

Posted on December 13, 2017. Filed under: blockchain, startups, venture capital |

“Experts” won’t be first

Posted on November 14, 2017. Filed under: blockchain, startups, venture capital |

Closing out the bullseye

Posted on October 26, 2017. Filed under: Uncategorized |

Clearest and most in depth podcast I’ve seen on Crypto

Posted on October 4, 2017. Filed under: Uncategorized |

An update on Crypto Club and notes from last meeting

Posted on October 2, 2017. Filed under: Uncategorized |

Venture Capital in a “post-blockchain” world

Posted on September 22, 2017. Filed under: Uncategorized |

Crypto in the context of online classifieds

Posted on September 11, 2017. Filed under: Uncategorized |

An experiment in “open presence”

Posted on August 29, 2017. Filed under: Uncategorized |

sat down to write a normal blogpost and a baby protocol came out

Posted on July 26, 2017. Filed under: Uncategorized |

Paradoxical Protocols

Posted on July 13, 2017. Filed under: Uncategorized |

    About

    I’m a NYC based investor and entrepreneur. I think there is one metric that can be used to measure the value of a human life and that’s impact. How did you change things? How many people did you touch? How different is the world because you lived in it and how positive was the change that you affected? (p.s. i don’t use spell check…deal with it) You can email me at Jordan.Cooper@gmail.com

    RSS

    Subscribe Via RSS

    • Subscribe with Bloglines
    • Add your feed to Newsburst from CNET News.com
    • Subscribe in Google Reader
    • Add to My Yahoo!
    • Subscribe in NewsGator Online
    • The latest comments to all posts in RSS

    Meta

Liked it here?
Why not try sites on the blogroll...