Crypto Investments for Risk Averse Futurists...

[EthereumVision]

Hi All,

I have been part of cryptocurrency world for almost five years now. More than greed to make quick money, I think the concept of cryptocurrency is much bigger: it's about decentralizinc political powers, reinventing the economic system and building a trustworthy global monetary system. I understand, it's not going to happen tomorrow or in five years given the stronghold of nationalism and speculative nature of nascent currency markets.

That being said, I believe that we need to show strong working models of crypto running actual physical world assets. I have been thinking to create a search fund: a business to acquire a profitable small company ($10-15M revenues) using a cryptofund and then make crypto investors as the real owners by implementing decentralized model of management. The company wouldn't be a startup because of the typical risky nature of early stage companies. Rather, it would be a well established business with a strong history of profit with an aim to generate 20-30% annual return for investors.

What do you guys think ? Any ideas, comments, suggestions are welcomed.

[mudiko]

-Crypto community is more likely to invest in crypto companies since they match their passion.
-Why would companies with such high returns need crypto investors?
-Why do we need Crypto funding when we receive real shares and do not use token voting system?
-Can't you just build it on real money?

[EthereumVision]

-Crypto community is more likely to invest in crypto companies since they match their passion.

Agreed. That's why I wanted to have decentralized organization model (DAO)  implemented in the company. In theory, DAO looks great but we don't have a single test case demonstrating that such organizations would be better than traditionally run organizations.

Rolling out DAO on a small to medium sized organization (e.g. 200 people, 10-15M revnues) would be great to test drive the DAO model and build custom software stack for it.

-Why would companies with such high returns need crypto investors?
-Why do we need Crypto funding when we receive real shares and do not use token voting system?
-Can't you just build it on real money?

These companies don't need crypto investors.  It's like Lower Middle Market private equity. PE companies buy these profitable small companies but small investors don't have any ability to buy shares in these companies at all.  Small investors only have access to public companies (where they lose again because of asymmetry of information and smart money). Small and more profitable companies are simply out of reach of small investors.

Moreover, crypto breaks the national boundaries.  Let's say I live in Korea and  if I want to buy shares of a small profitable company in Canada, crypto would enable it.

-Why do we need Crypto funding when we receive real shares and do not use token voting system?

I want token voting system implemented in one form or other. But there are no real world examples of it yet.

-Can't you just build it on real money?

Yes. Real money can very well do it. SearchFund Model is similar: https://en.wikipedia.org/wiki/Search_fund

I am just excited about the potential of crypto.

[dbc23]

Evergreen coin is ramping up a DAO for their non-profit.  I think that may be the foot in the door scenario to get this idea off the ground.  There's many technical and legal issues to be tackled to use token ownership to supplant stock ownership, but the non-profit sector can skip over some of the stickier bits of that, not least of which is the fiduciary profit-making responsibility of for profit publicly held companies. 

The biggest and easiest gain i see for DAO companies is the ability to operate without a board of directors and the associated costs of having one.