In today’s Exponential Investor…
- What do these celebrities have you don’t?
- Two options, where one isn’t an option
- Get to be your own VC
According to Forbes, Jay-Z has a net worth somewhere in the vicinity of $1 billion.
Katy Perry is estimated to be worth around $330 million.
Serena Williams, her net worth is up around $200 million.
They all are worth more than you, at least if you measure ‘worth’ in money which our legacy financial system does.
I’m guessing you already know who Jay-Z, Katy Perry and Serena Williams are. But whoa bout, Phill Jackson (of Lord of the Rings fame) or Jaden Smith (son of Will Smith and Jada Pinkett Smith)? What about Ruby Rose (actress), Phil Rosenthal (TV producer), Trevor Noah (TV host), Questlove (musician) and Zedd (DJ).
What do all these people have in common?
They’re part of the ‘rich and famous’ set.
They also all have something in common that you’ll never have in common with them.
They’re at the front of the queue when it comes to making money and you’re at the back of the queue.
It’s not about smarts, it’s about status
Do you think Jaden Smith, at 22 years old is smarter than you?
Do you think that Katy Perry is smarter than you?
Do you think Serena Williams is smarter than you?
Honestly, I don’t know if they are or not. But I’d hazard a guess they’re probably not. They might be ludicrously wealthier than you, but that doesn’t make them smarter.
Yet they’re all investors in the burgeoning ‘alternative meat’ company Impossible Foods. They’ve all been given the opportunity to get a slice of a private company that just raised (another) $200 million and is already worth about $4 billion.
There’s only one reason they’ve got a chance to get into a potentially huge company like that. They’re rich and famous.
They’re not necessarily smarter than you. They’re not better people than you. They’re just already rich and famous. That means they’re given preferential status and treatment when it comes to money making opportunities.
If you’re not rich and famous (I’m not, I’m guessing you’re not) then you’ll never get near an investment like that until it debuts on a public stockmarket.
By then, it’s too late.
The big money has already been made. And when a company like that goes public, it’s the early investors, the rich and famous set that are flogging their holdings to you in the public market.
As they’re cashing out millions, you’re piling in your hard earned. You’re already several steps behind.
This isn’t an unusual situation by the way.
Companies like Spotify, Lyft, Dropbox, DraftKings, Ksv Esports, Airbnb, Box, Google, Robinhood all spout celebrity investors that got a shot at the action before average people could ever get near it.
In June 1999 Shaquille O’Neal, Arnold Schwarzenegger and Tiger Woods all got in a Series A round of investment in Google.
Ashton Kutcher now a serial investor has had a shot early on with Airbnb, Bebo and Box.
The only reason he even got a start in the first place was because he’d made a bunch of money from TV, started a production company and then found his way into the rich and famous Silicon Valley inner sanctum.
The key to making money in the legacy system, in ‘traditional’ financial markets isn’t about smarts. It’s about status.
Get rich and famous or…
I don’t blame or bemoan these celebrities for taking these opportunities. If I was in the same position, I’d be doing exactly the same thing. Good on them I say.
The point is that in traditional finance, the legacy system, it’s not designed for average investors to make obscenely huge money. It’s a convoluted system that rewards status and wealth.
It helps the rich get richer and everyone else left to graft and grind for the scraps left behind.
The thing is there’s nothing you can do to change the legacy system. You can still make good money in it. You can still invest. But you’re not going to get a shot at the next Google while it’s raising Series A money. You’re not getting a shot in the legacy system at the next Netflix, Spotify or Uber.
You’re just not rich and/or famous enough.
That means you’ve got two options.
- Get rich and famous (unlikely)
- Use another system to mint you wealth before those from the legacy system realise what’s happening.
Option 1 isn’t happening (I don’t think). But option 2 is a real possibility.
A decade ago, you didn’t have an option 2. You just had to suffer at the hands of the ruling elite while they shafted global economies and the financial system into dust. Follow the hordes, and maybe you can eke out some long-term gains.
But today the world is a different place. While the financial system continues to be abused into oblivion there’s a new player in town. A new system that allows for everyone with a bit of foresight and optimism to take a punt and stake some of the most exciting developments in technology since the dawn of the internet.
That system is the decentralised system.
The tide has turned
You might hear it referred to as cryptocurrencies or distributed ledger technology. But the underlying, guiding principle behind many of the opportunities in this new wealth creation system is decentralisation.
That means the decentralisation of power, of money away from centralised, ruling elites and the inner sanctums that hoard the wealth creation for themselves in the legacy system.
The decentralised financial system gives someone like you the jump start on someone like Jay-Z, Ashton Kutcher or Katy Perry.
Sure they’ll continue to mint their wealth in the legacy system ahead of the queue.
But in the decentralised financial system, you’re at the front of the queue. You get the chance to get in early, to take the first stake, to open yourself to potential wealth from just a nominal capital stake.
That’s why’s so powerful about the decentralised system. The power shift is so huge and so radical that it’s completely turned the tide on the wealth machines from the legacy system.
Never before has there been such a fundamental change in who gets access to potential wealth creation. Maybe it’s not just the decentralised system, but the democratisation of venture capital.
It’s this idea of you being your own ‘VC’ that I think is the most exciting thing about the new decentralised financial system. And it’s why I’ve been working around the clock to bring together some of the finest, sharpest minds in the world in a special seven-part docuseries to show you exactly what is happening and how you can take advantage of it.
It’s the most ambitious, exciting and eye-opening series of interviews and information I’ve ever had the privilege to be a part of, and I’m opening the entire series to you for free starting on 24 August.
All you have to do to get access to the seven-part series is register here and get ready for the interviews, and free gifts to start rolling in.
Editor, Exponential Investor
PS It turns out that there is not actually a very clear definition for what bitcoin is. That may be why you, I, or so many people just don’t get why people are so damn excited about it. Every crypto enthusiast you ask for an explanation gives you a different one. Find out more here…