The VC Model is Broken: Ideas, Anyone?
thefunded.com
thefunded.com
by making it competitive, and relevant to the consumers of the products, we inject realism to ventures. we will no longer be investing in projects that do not engage the user base.
think of it like taking all of the Y-combinator submissions and opening them up to rating by the readership of HN.
i feel the problem with VC is projects get funding that aren't in any way vetted by the consumers they intend to serve. and of course the whole "not having a monetization plan" thing...
a) echo chamber: you'd get a lot more lisp/arc startups funded than you should
b) gaming: I'll get all my friends to join so they can vote to give me money
I haven't reread "Wisdom of the Crowds" recently, but this answer just rings false to me. For example, I don't invest based on comments on Google finance.
we wouldn't be giving complete noob accounts the same voting power as vetted community participants. voting ranking wouldn't be anonymous either. if you voted for something you'd have to be able to back up your decision against the scrutiny of the masses.
every system has flaws, these ones are at least minor and possibly even self correcting