It would be great if YC actually did "eat itself" and usher in the crowdfunding era. This is certainly contrary to the exclusive club they are today but it beats being subsumed. And YC does have good things to teach people and is quite generous. It would be good for the world if they were the ones that did this. "Kickstart with equity" is clearly the model of the future. Indiegogo is working on it.
I want crowdfunding to work, but your claim that Sam can't see straight about it isn't supported by the video.
""Kickstart with equity" is clearly the model of the future. "
Clearly? I would disagree.
Crowdfunding seems to work well when you've already got an experienced team, have an advanced prototype of your product/service, and just need funding to scale up that prototype.
If you've got an inexperienced team, an MVP-style prototype, and could use extra guidance and support, then going with crowdfunding would probably end up being problematic.
How does the crowd determine the difference between your type 1 and your type 2 companies?
I can talk about successful crowdfunded products, including products made by companies.
To give one example to start with, Formlabs has used crowdfunding to help generate money to manufacture their 3D printers:
>"How does the crowd determine the difference between your type 1 and your type 2 companies?"
I'd suggest it comes down to experience. With experience in crowdfunding you can spot the campaigns that are likely to succeed, and which ones are likely to fail. The main problem I see is when campaigns are too ambitious based on the background of the people involved. For example, high volume manufacturing in China without prior experience of working with Chinese manufacturing companies.
This probably helped give them some runway to put together a series A. However they still raised an additional 50MUSD.
So, I don't think they're a great example of a company bootstrapping from crowdfunding. It's more of a traditional play, with some validation (and some runway) from crowdfunding.
And his response of current signaling coming from well-known investors does jive with my own experience, esp. for seed stage.
But, a lot of this starts to disappear once a company is looking for Series A+. Because now you have actual financials/product+market to look at. I would also argue the value of "smart" money is more towards the seed stage anyway.
So, shift focus away from seed stage, and into crowdfunding Series A+.
In other words, enable a) bootstrappers who have found product/market fit to take things to the next level b) the common man to invest in a way a bank might.