Brian Armstrong @brian_armstrong Co-founder & CEO at @Coinbase Co-founder @GiveCrypto Building an open financial system for the world. Join us: Nov. 08, 2019 2 min read

Excited to see this from @a16z! When the internet first launched, people started creating "dot com" startups and eventually almost every startup had an internet component.

We're now seeing the rise of "crypto startups". Eventually most startups will have a crypto component.

As one data point Coinbase Ventures has now invested in more than 60 crypto startups.

If you want to build a company today, it is probably worth learning about how to do it in a crypto native way.

Crypto has the potential to solve some of the biggest challenges of launching a company today.

In particular, it can help startups turn their early customers into evangelists by issuing them utility tokens. Getting an early critical mass of people to join your product is tough!

Similar to how early employees in startups get stock options (and this is a huge part of what aligns everyone's interests and makes startups successful), imagine if all the early *customers* also got something similar.

Note: yes, there is a big area of legal clarity here about whether each startup is creating a utility token, or a security token. I suspect this will be discussed in the class. It's an important area to get right.

But imagine if the early drivers on Uber, or the early home owners on Airbnb, had gotten some interest in the company. It would have been a lot easier to build those marketplaces, and network effects.

A crypto native startup will have other advantages to it as well - it can improve access to fundraising for instance, can accept payments globally from day one etc. But there are some drawbacks as well - this is still all very new, and the tools aren't plug and play yet.

Of course, this is true of any new area. If you want to learn how to be on the forefront, I think every entrepreneur should learn about how to create a crypto native startup.

Prediction (credit to @balajis on this): within 5 years more than 50% of all YCombinator startups will have a crypto component.

One other benefit I forgot. Crypto native startups are inherently global from day one. Venmo, Robinhood, Square Cash, etc are all only available in the U.S. Intl expansion is really expensive and time consuming using the traditional financial system.

You can follow @brian_armstrong.


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