Risk Money
Capitalism is a mechanism that embraces uncertainty and rewards entrepreneurs who see risk as an opportunity, aiming to advance society. Those who venture into uncharted territories, rather than conforming to the status quo, are the ones shaping the fundamental structure of our society. Those who simply adhere to it are nothing more than free riders. Entrepreneurs buy options with their passion, time, and relationships as the price. Limited Partners (LP) who supply risk money are the sellers of options, and General Partners (GP) of VC funds are the market makers. The latter are mostly salarymen, making the overall moral hazard very likely. In such an ecosystem, it is not easy to remain genuine. I ponder this as I walk from the station. In this ecosystem, at least as long as entrepreneurs raise funds based on equity, there is no downside that would bankrupt either the entrepreneurs or the institutional investors who supply risk money as salarymen. Who in this ecosystem has the determination to face the downside? Is it the angel investors who are deeply involved, or the entrepreneurs who put personal guarantees on debt? All of this is possible because of the availability of money, so I am grateful for the Japanese startup market that is being invested in as risk money.
At Civichat, we want to make the concept of "application-based" work well. We are grateful for the investment from risk money, which is the default. Let's properly hack capitalism and move forward.