Problem: Venture Capital as an industry has yet to be upended and massively changed.
Solution Notes:
Inspiration Article: The Era of Guilds. Guilds will replace early-stage VCs | by DeFi Vader | Nov, 2021 | Medium.
Key Takeaway: “Guilds will have a significant influence in blockchain games over the next 5–10 years as they are able to secure preferential private investment terms as an early source of a)player, b)NFT, c)token liquidity for games looking to bootstrap. I believe guilds will replace early-stage VCs and traditional game publishers as the primary capital source for blockchain games.”
Idea: Create a guild-based venture fund or hedge fund. It would work by buying and leasing assets rather than buying and holding assets. Just like landlords rent physical homes out, these guilds would rent digital assets out.
What is a Guild? See this article: Yield Guild Games 101. The Virtual Land Baron of the Metaverse | by DeFi Vader | Medium. Short description, “YGG is building a portfolio of game NFTs such as virtual lands, items, characters and leasing them out to “scholars” who can’t afford to buy those NFTs. It costs $1–2k to buy 3 Axies in order to play Axie Infinity where one can earn $10–20 a day.” (from source)
Summary: “Blockchain games are willing to give investment allocation to guilds as they provide the necessary player, NFT, token liquidity to bootstrap. Guilds will eventually replace early-stage blockchain gaming VCs and start leading fundraising rounds. Competition from upcoming guilds and guild tool providers pushing boundaries is critical for the entire space as it pushes the largest guilds to be more innovative and productive.” (from source)
Monetization: Management fees and diversification for traditional investors (HNWI).
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Contributed by: Michael Bervell (Billion Dollar Startup Ideas)