Venture Capital in Southern California panel. From right, KPCC's Matthew DeBord, Rustic Canyon Partner's Nate Redmond, Idealab's Alex Maleki, and Ben Kuo from socalTECH.
Felix Salmon has an interesting post today about investing in people rather than companies. He introduces what he calls a "mysterious website" for company (or something) called Upstart that will provide individuals with funding in exchange for "future income."
I don't know anything about Upstart, but once Felix covers the whole "people equity" concept, he gets into some points about venture capital. For whatever reason, I find myself disagreeing with him when he talks about VC, whereas I usually agree with him about many other things. I thought he mischaracterized the VC mindset in a recent post about the Matter and Kickstarter. And I'm not sure how I feel about this argument, either:
In a world where venture capitalists increasingly invest in a startup’s management team rather than in its business model or underlying idea, [the Upstart model] makes sense. Find the entrepreneur and invest in the individual directly, thereby guaranteeing that you’ll have a stake in their success if and when they finally hit it rich on their fifth or sixth attempt.