The Intersection of Running a Micro VC and NFT Creators Going cc0

The Intersection of Running a Micro VC and NFT Creators Going cc0

In the ever-evolving world of startups and investments, there are valuable lessons to be learned from running a micro VC and the growing trend of NFT creators embracing the cc0 license. While these may seem like unrelated topics, they share common points that can shed light on the challenges and opportunities in the world of entrepreneurship and intellectual property.

Running a micro VC is no easy feat, and one of the first things to understand is that most VC funds are failures. Just like startups, the majority of VCs will not achieve significant returns. This highlights the need for thorough research and due diligence before diving into the world of venture capital. It is essential to have conversations with multiple micro VCs to gain insights and understand the realities of the industry. Moreover, financial stability is crucial when starting a fund, as most of the money raised needs to be dedicated to investments rather than personal expenses. This means that the salary of a micro VC may not be as lucrative as one might expect, and it can be challenging to bootstrap a micro VC due to limited income options.

Additionally, fund managers often invest a portion of their own capital into the fund. This practice aligns their interests with the success of the fund and demonstrates their commitment to its growth. However, raising a fund is not a quick process, and it can take up to two years to secure the necessary capital and build a strong network of investors. Furthermore, SEC regulations limit the number of accredited investors that can contribute to a fund, emphasizing the importance of quality over quantity when seeking investment partners.

On the other hand, the world of NFTs and the cc0 license offer a unique perspective on intellectual property and collaboration. By issuing digital works under the cc0 license, creators intentionally waive their rights and allow others to use the same intellectual property without exclusion. This may seem counterintuitive to traditional IP strategies, but the open sharing and remixing culture within the NFT community can actually increase the value of the original work. As derivatives and interpretations of an NFT are created and shared, attention is drawn back to the original, reinforcing its position in the collective consciousness. This flywheel effect can generate more interest and ultimately enhance the value of the original piece.

The parallels between open source movements in the crypto space and the cc0 license become evident when considering the dynamics of cooperation and trust among strangers. Decentralized systems, like NFTs, rely on collaboration and the ability for individuals to take ownership of their digital assets. This ownership allows them to reap the benefits of co-creation and the value that accrues to their contributions. To achieve the full potential of NFTs and the cc0 license, it is crucial to develop supporting infrastructure services that enable seamless remixing and interoperability. Composability is key to growth, as it allows users to plug their assets into various platforms, driving demand for the original cc0 assets and generating ongoing royalties from secondary sales.

The decision to embrace cc0 for NFT creators is not solely driven by financial motives but also by the desire to foster a vibrant and engaged community. By relinquishing control over their intellectual property, creators can promote extensions of their original projects and encourage collaboration. This cooperative approach can turn competition into cooperation and lead to a Linux-like potential for NFTs, where the value proposition strengthens through shared innovation and growth.

In conclusion, the lessons learned from running a micro VC and the motivations behind NFT creators embracing the cc0 license highlight the importance of thorough research, financial stability, and collaboration in the world of entrepreneurship and intellectual property. Whether it's navigating the challenging landscape of venture capital or leveraging the power of open sharing and remixing in the NFT space, these insights can guide aspiring entrepreneurs and creators towards success.

Actionable Advice:

1. Conduct thorough research and due diligence before venturing into the world of venture capital. Seek advice from multiple micro VCs to gain insights and understand the realities of the industry.
2. Ensure financial stability before starting a fund. Most of the raised capital should be dedicated to investments rather than personal expenses. Prepare for the possibility of a lower salary or limited income options in the early stages.
3. Embrace collaboration and open sharing in your creative endeavors. Consider the potential value of giving up some control over your intellectual property and fostering a vibrant community around your work. Explore opportunities for remixing and interoperability to maximize the reach and impact of your creations.