[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.56,0:00:04.10,Default,,0000,0000,0000,,When I was raising investment\Nfor my startup,
Dialogue: 0,0:00:04.12,0:00:06.22,Default,,0000,0000,0000,,a venture capitalist said to me,
Dialogue: 0,0:00:06.24,0:00:10.42,Default,,0000,0000,0000,,"Ashwini, I think you're going to raise\Na few million dollars.
Dialogue: 0,0:00:10.44,0:00:15.50,Default,,0000,0000,0000,,And your company --\Nit's going to sell for 50 to 70 million.
Dialogue: 0,0:00:15.52,0:00:17.98,Default,,0000,0000,0000,,You're going to be really excited.
Dialogue: 0,0:00:18.00,0:00:21.50,Default,,0000,0000,0000,,Your early investors\Nare going to be really excited.
Dialogue: 0,0:00:21.52,0:00:23.90,Default,,0000,0000,0000,,And I'm going to be really upset.
Dialogue: 0,0:00:23.92,0:00:25.88,Default,,0000,0000,0000,,So I'm not going to invest in this deal."
Dialogue: 0,0:00:26.84,0:00:30.00,Default,,0000,0000,0000,,I remember just being dumbstruck.
Dialogue: 0,0:00:31.44,0:00:33.18,Default,,0000,0000,0000,,Who would be unhappy
Dialogue: 0,0:00:33.20,0:00:36.86,Default,,0000,0000,0000,,with putting four or five\Nmillion dollars into a company
Dialogue: 0,0:00:36.88,0:00:40.68,Default,,0000,0000,0000,,and having it sell for 50 to 70 million?
Dialogue: 0,0:00:41.88,0:00:43.98,Default,,0000,0000,0000,,I was a first-time founder.
Dialogue: 0,0:00:44.00,0:00:47.46,Default,,0000,0000,0000,,I didn't have a wealthy network\Nof individuals to turn to for investment,
Dialogue: 0,0:00:47.48,0:00:49.06,Default,,0000,0000,0000,,so I went to venture capitalists
Dialogue: 0,0:00:49.08,0:00:52.44,Default,,0000,0000,0000,,the most common form of investor\Nin a technology company.
Dialogue: 0,0:00:53.24,0:00:56.62,Default,,0000,0000,0000,,But I'd never taken the time to understand
Dialogue: 0,0:00:56.64,0:00:59.44,Default,,0000,0000,0000,,what was motivating that VC to invest.
Dialogue: 0,0:01:00.96,0:01:05.02,Default,,0000,0000,0000,,I believe we're living\Nin a golden era of entrepreneurship.
Dialogue: 0,0:01:05.04,0:01:09.24,Default,,0000,0000,0000,,There is more opportunity\Nto build companies than ever before.
Dialogue: 0,0:01:10.16,0:01:14.42,Default,,0000,0000,0000,,But the financial systems\Ndesigned to fund that innovation,
Dialogue: 0,0:01:14.44,0:01:16.30,Default,,0000,0000,0000,,venture capital,
Dialogue: 0,0:01:16.32,0:01:20.06,Default,,0000,0000,0000,,they haven't evolved\Nin the past 20 to 30 years.
Dialogue: 0,0:01:20.08,0:01:23.98,Default,,0000,0000,0000,,Venture capital was designed\Nto pour large sums of money
Dialogue: 0,0:01:24.00,0:01:29.54,Default,,0000,0000,0000,,into a small number of companies\Nthat can sell for over a billion dollars.
Dialogue: 0,0:01:29.56,0:01:34.74,Default,,0000,0000,0000,,It was not designed to sprinkle capital\Nacross many companies
Dialogue: 0,0:01:34.76,0:01:39.62,Default,,0000,0000,0000,,that have the potential to succeed\Nbut for less, like my own.
Dialogue: 0,0:01:39.64,0:01:43.10,Default,,0000,0000,0000,,That limits the number\Nof ideas that get funded,
Dialogue: 0,0:01:43.12,0:01:45.26,Default,,0000,0000,0000,,the number of companies that are created
Dialogue: 0,0:01:45.28,0:01:49.46,Default,,0000,0000,0000,,and who can actually receive\Nthat funding to grow.
Dialogue: 0,0:01:49.48,0:01:52.14,Default,,0000,0000,0000,,And I think it inspires a tough question:
Dialogue: 0,0:01:52.16,0:01:55.26,Default,,0000,0000,0000,,What's our goal with entrepreneurship?
Dialogue: 0,0:01:55.28,0:02:00.82,Default,,0000,0000,0000,,If our goal is to create a tiny number\Nof billion-dollar companies,
Dialogue: 0,0:02:00.84,0:02:03.74,Default,,0000,0000,0000,,let's stick with venture\Ncapital, it's working.
Dialogue: 0,0:02:03.76,0:02:07.70,Default,,0000,0000,0000,,But if our goal is to inspire innovation
Dialogue: 0,0:02:07.72,0:02:11.70,Default,,0000,0000,0000,,and empower more people\Nto build companies of all sizes,
Dialogue: 0,0:02:11.72,0:02:13.78,Default,,0000,0000,0000,,we need a new way to fund those ideas.
Dialogue: 0,0:02:13.80,0:02:15.74,Default,,0000,0000,0000,,We need a more flexible system
Dialogue: 0,0:02:15.76,0:02:19.42,Default,,0000,0000,0000,,that doesn't squeeze\Nentrepreneurs and investors
Dialogue: 0,0:02:19.44,0:02:23.04,Default,,0000,0000,0000,,into one rigid financial outcome.
Dialogue: 0,0:02:23.96,0:02:26.80,Default,,0000,0000,0000,,We need to democratize access to capital.
Dialogue: 0,0:02:28.24,0:02:31.06,Default,,0000,0000,0000,,In the summer of 2017,\NI went out to San Francisco,
Dialogue: 0,0:02:31.08,0:02:34.38,Default,,0000,0000,0000,,to join a tech accelerator\Nwith 30 other companies.
Dialogue: 0,0:02:34.40,0:02:38.62,Default,,0000,0000,0000,,The accelerator was supposed to teach us\Nhow to raise venture capital.
Dialogue: 0,0:02:38.64,0:02:40.10,Default,,0000,0000,0000,,But when I got out there,
Dialogue: 0,0:02:40.12,0:02:46.90,Default,,0000,0000,0000,,the startup community was buzzing\Nabout ICOs, or Initial Coin Offerings.
Dialogue: 0,0:02:46.92,0:02:52.90,Default,,0000,0000,0000,,For the first time, ICOs had raised\Nmore money for young startups
Dialogue: 0,0:02:52.92,0:02:54.60,Default,,0000,0000,0000,,than venture capital had.
Dialogue: 0,0:02:55.60,0:02:57.42,Default,,0000,0000,0000,,It was the first week of the program.
Dialogue: 0,0:02:57.44,0:02:59.02,Default,,0000,0000,0000,,Tequila Friday.
Dialogue: 0,0:02:59.04,0:03:01.06,Default,,0000,0000,0000,,And the founders couldn't stop talking.
Dialogue: 0,0:03:01.08,0:03:02.50,Default,,0000,0000,0000,,"I'm going to raise an ICO."
Dialogue: 0,0:03:02.52,0:03:04.06,Default,,0000,0000,0000,,"I'm going to raise an ICO."
Dialogue: 0,0:03:04.08,0:03:05.70,Default,,0000,0000,0000,,Until one guy goes,
Dialogue: 0,0:03:05.72,0:03:08.54,Default,,0000,0000,0000,,"How cool if we did this all together?
Dialogue: 0,0:03:08.56,0:03:12.14,Default,,0000,0000,0000,,We should do an ICO that combines\Nthe value of all of our companies
Dialogue: 0,0:03:12.16,0:03:14.30,Default,,0000,0000,0000,,and raise money as a group."
Dialogue: 0,0:03:14.32,0:03:16.66,Default,,0000,0000,0000,,At that point, I had to ask\Nthe obvious question,
Dialogue: 0,0:03:16.68,0:03:19.30,Default,,0000,0000,0000,,"Guys, what's an ICO?"
Dialogue: 0,0:03:19.32,0:03:23.30,Default,,0000,0000,0000,,ICOs were a way for young\Ncompanies to raise money
Dialogue: 0,0:03:23.32,0:03:25.78,Default,,0000,0000,0000,,by issuing a digital currency
Dialogue: 0,0:03:25.80,0:03:30.10,Default,,0000,0000,0000,,tied to the value and services\Nthat the company provides.
Dialogue: 0,0:03:30.12,0:03:32.62,Default,,0000,0000,0000,,The currency acts similar\Nto shares in a company,
Dialogue: 0,0:03:32.64,0:03:34.58,Default,,0000,0000,0000,,like on the public stock market,
Dialogue: 0,0:03:34.60,0:03:37.40,Default,,0000,0000,0000,,increasing in value as it's traded online.
Dialogue: 0,0:03:38.40,0:03:43.74,Default,,0000,0000,0000,,Most important,\NICOs expanded the investor pool,
Dialogue: 0,0:03:43.76,0:03:46.18,Default,,0000,0000,0000,,from a few hundred venture capital firms
Dialogue: 0,0:03:46.20,0:03:50.48,Default,,0000,0000,0000,,to millions of everyday people,\Nexcited to invest.
Dialogue: 0,0:03:51.36,0:03:54.10,Default,,0000,0000,0000,,This market represented more money.
Dialogue: 0,0:03:54.12,0:03:56.30,Default,,0000,0000,0000,,It represented more investors.
Dialogue: 0,0:03:56.32,0:03:59.76,Default,,0000,0000,0000,,Which meant a greater\Nlikelihood to get funded.
Dialogue: 0,0:04:00.60,0:04:01.96,Default,,0000,0000,0000,,I was sold.
Dialogue: 0,0:04:02.80,0:04:06.26,Default,,0000,0000,0000,,The idea, though, of doing it together\Nstill seemed a little crazy.
Dialogue: 0,0:04:06.28,0:04:08.82,Default,,0000,0000,0000,,Startups compete\Nwith each other for investment,
Dialogue: 0,0:04:08.84,0:04:11.64,Default,,0000,0000,0000,,it takes hundreds of meetings\Nto get a check.
Dialogue: 0,0:04:13.56,0:04:17.50,Default,,0000,0000,0000,,That I would spend my precious 15 minutes\Nin front of an investor
Dialogue: 0,0:04:17.52,0:04:21.54,Default,,0000,0000,0000,,talking not just about my own company,\Nbut all the companies in the batch,
Dialogue: 0,0:04:21.56,0:04:22.76,Default,,0000,0000,0000,,was unprecedented.
Dialogue: 0,0:04:24.56,0:04:26.50,Default,,0000,0000,0000,,But the idea caught on.
Dialogue: 0,0:04:26.52,0:04:30.80,Default,,0000,0000,0000,,And we decided to cooperate,\Nrather than compete.
Dialogue: 0,0:04:32.00,0:04:37.38,Default,,0000,0000,0000,,Every company put 10 percent\Nof their equity into a communal pool
Dialogue: 0,0:04:37.40,0:04:40.54,Default,,0000,0000,0000,,that we then split\Ninto tradable cryptocurrency
Dialogue: 0,0:04:40.56,0:04:42.24,Default,,0000,0000,0000,,that investors could buy and sell.
Dialogue: 0,0:04:43.28,0:04:45.98,Default,,0000,0000,0000,,Six months and four law firms later --
Dialogue: 0,0:04:46.00,0:04:47.66,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:47.68,0:04:51.82,Default,,0000,0000,0000,,in January 2018,\Nwe launched the very first ICO
Dialogue: 0,0:04:51.84,0:04:55.18,Default,,0000,0000,0000,,that represented the value\Nof nearly 30 companies
Dialogue: 0,0:04:55.20,0:04:58.16,Default,,0000,0000,0000,,and an entirely new way to raise capital.
Dialogue: 0,0:04:59.24,0:05:00.98,Default,,0000,0000,0000,,We got a lot of press.
Dialogue: 0,0:05:01.00,0:05:03.18,Default,,0000,0000,0000,,My favorite headline about us read,
Dialogue: 0,0:05:03.20,0:05:05.46,Default,,0000,0000,0000,,"VCs, read this and weep."
Dialogue: 0,0:05:05.48,0:05:08.18,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:05:08.20,0:05:10.26,Default,,0000,0000,0000,,Our fund was naturally more diverse.
Dialogue: 0,0:05:10.28,0:05:12.50,Default,,0000,0000,0000,,Twenty percent of the founders were women.
Dialogue: 0,0:05:12.52,0:05:14.90,Default,,0000,0000,0000,,Fifty percent were international.
Dialogue: 0,0:05:14.92,0:05:17.50,Default,,0000,0000,0000,,The investors were more excited, too.
Dialogue: 0,0:05:17.52,0:05:19.46,Default,,0000,0000,0000,,They had a chance to get better returns,
Dialogue: 0,0:05:19.48,0:05:22.30,Default,,0000,0000,0000,,because we took out\Nthe middleman fees of venture capital.
Dialogue: 0,0:05:22.32,0:05:25.30,Default,,0000,0000,0000,,And they could take their money\Nand reinvest it,
Dialogue: 0,0:05:25.32,0:05:28.24,Default,,0000,0000,0000,,potentially funding more new ideas faster.
Dialogue: 0,0:05:30.16,0:05:34.78,Default,,0000,0000,0000,,I believe this creates\Na virtuous cycle of capital
Dialogue: 0,0:05:34.80,0:05:38.54,Default,,0000,0000,0000,,that allows many more\Nentrepreneurs to succeed.
Dialogue: 0,0:05:38.56,0:05:42.10,Default,,0000,0000,0000,,Because access to capital\Nis access to opportunity.
Dialogue: 0,0:05:42.12,0:05:45.10,Default,,0000,0000,0000,,And we have only just begun to imagine
Dialogue: 0,0:05:45.12,0:05:48.20,Default,,0000,0000,0000,,what democratizing\Naccess to capital will do.
Dialogue: 0,0:05:49.56,0:05:53.06,Default,,0000,0000,0000,,I would have never thought\Nthat my own search for funding
Dialogue: 0,0:05:53.08,0:05:54.90,Default,,0000,0000,0000,,would lead me to this stage,
Dialogue: 0,0:05:54.92,0:05:58.52,Default,,0000,0000,0000,,having helped nearly\N30 companies get investment.
Dialogue: 0,0:05:59.80,0:06:05.54,Default,,0000,0000,0000,,Imagine if other entrepreneurs tried\Nto invent new ways to access capital
Dialogue: 0,0:06:05.56,0:06:08.30,Default,,0000,0000,0000,,rather than following\Nthe traditional route.
Dialogue: 0,0:06:08.32,0:06:11.38,Default,,0000,0000,0000,,It would change\Nwhat gets built, who builds it
Dialogue: 0,0:06:11.40,0:06:14.18,Default,,0000,0000,0000,,and the long-term impact on the economy.
Dialogue: 0,0:06:14.20,0:06:17.14,Default,,0000,0000,0000,,And I believe that's way more exciting
Dialogue: 0,0:06:17.16,0:06:20.10,Default,,0000,0000,0000,,than just trying to invest\Nin the next billion-dollar startup.
Dialogue: 0,0:06:20.12,0:06:21.34,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:06:21.36,0:06:25.08,Default,,0000,0000,0000,,(Applause)