Bromberg frames venture history around three recurring shifts: lower costs to start companies, lower barriers to investing, and pressure for faster liquidity. He argues that as those barriers fall, more capital and more startups enter the market, though liquidity can slow down in some periods.
Startup Investor School Day 4
Speaker
Andy Bromberg, CEO and co-founder of CoinList, reviews the past, present, and future of early-stage investing at Y Combinator’s Startup Investor School.
He traces venture from early firms such as J. H. Whitney and ARDC, whose investment in Digital Equipment Corporation returned about 500 times in 11 years, through the growth of institutional capital and the 1980s fund boom. Later shifts included YC’s standardization of convertible notes, the SAFE in 2014, and online platforms that broadened access to startup funding.
Bromberg describes ICOs as a new fundraising path that can let projects raise money online, while stressing that tokens represent participation in a network rather than company ownership. He distinguishes protocol, application, and asset-backed tokens, and contrasts token investing with seed rounds in governance, valuation, founder access, and liquidity.
Using Filecoin as an example, Bromberg explains how a token can reward people for providing storage and checking that files remain available. Storage providers stake tokens that they can lose for failing to meet commitments, while verifiers and miners are rewarded for their work. He cautions that ICOs were a young, volatile market and called for careful evaluation of the technology, team, and deal structure.
Bromberg expects continued pressure for faster liquidity and lower costs to start and fund companies. He also warns that early investor exits can weaken a company during a downturn, so token projects may need longer lockups. In the Q&A, he says a token project ideally raises enough to launch its network, but acknowledges that many may run out of money before reaching that point.
Takeaways
- Track how falling startup and investment costs change who can participate and how much capital reaches founders.
- Treat token rights as distinct from equity ownership, including differences in governance and access to founders.
- Evaluate an ICO by examining the team, shipped technology, sale structure, and available diligence.
- Consider how investor lockups can preserve support through a company’s difficult periods.
- Plan fundraising around the resources needed to build and launch; a token sale may not be followed by another round.
Mentioned in this talk
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What was claimed 8
- builtProtocol Labs built Filecoin
“build Filecoin”
0:48inIPFS, CoinList, and the Filecoin ICOYouTube Verified3 sources· Talk
- featureCoinList: Platform for digital asset companies’ token sales
“We’re the platform the best digital asset companies use for their token sales”
YouTube Unverified1 source· Talk
- ceo ofAndy Bromberg CEO of CoinListCEO and co-founder
“I’m the CEO and co-founder of CoinList.”
YouTube Unverified1 source· Talk
- launched
Y Combinator launched
SAFE
standard fundraising document for future equity“in 2013, YC created a new standard fundraising document called the SAFE”
15:32inHow Startup Fundraising WorksYouTube Verified2 sources· Talk
- feature
Y Combinator: Standardized terms and encouraged founders to raise on convertible notes
“YC standardizing the terms and encouraging founders to raise money on convertible notes”
YouTube Unverified1 source· Talk
- featureAngelList: Connects investors to startups and makes raising capital and investing easier
“connected investors to startups and made it easier to raise capital, as well as easier to invest”
YouTube Unverified1 source· Talk
- metricJOBS Act: 2012
“in 2012, there was another underrated item”
YouTube Unverified1 source· Talk
- featureFilecoin: Uses token incentives, staking, and verification to coordinate decentralized file storage
“with a really clever token and incentive model”
YouTube Unverified1 source· Talk










