GM everyone. Sharing a new podcast episode with Chris Burniske of Placeholder Capital
On this episode we cover wisdom from building Placeholder, his thesis on Solana vs Ethereum, and the psychology of investing
A few of my favorite takeaways
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Despite its long history and large AUM, @placeholdervc has only 6 full time people. They aren’t trying to boil the ocean providing every service and are aggressive in limiting operations overheads and distractions. The focus is on thought and relationships
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In my opinion, Chris’s superpower is his ability to intimately get to know founders over long periods of time. He doesn’t invest after a week of knowing someone or rushes to close. He builds real conviction over time to help founders in good and bad times
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On Liquidity, Chris’s goal while selling is to be unknown. If he is able to exit a position without anyone knowing, thats the goal
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Their strategy is that of an AirCraft Carrier. They buy the base asset (think $SOL or $ETH). Then they invest in the ecosystem of private deals around these ecosystems. They are much more intimately involved in the community this way and the base asset is the hurdle rate
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On $SOL vs $ETH: Chris views SOL as the scrappy, nimble startup crushing lower expectations and ETH as a more mature asset with higher expectations as a consensus bet. He views SOL as pragmatic vs ETH as more ideological
Below is a summary of Placeholder’s Thesis on SOL
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Ethereum and Solana are like Android and iOS. Android values modularity, while iOS is a more closed system. Ethereum’s modularity is a strength, as it allows for innovation and experimentation at the layer-2 level. Solana’s closed system gives it a performance advantage, but it also makes it more difficult for developers to build on.
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Solana is faster and cheaper than Ethereum. Solana can process thousands of transactions per second, while Ethereum can only process about 15. Solana’s fees are also much lower than Ethereum’s.
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Solana has a strong developer community. Solana has attracted a lot of developers due to its speed, cost, and scalability. This developer community is essential for building the applications and services that will make Solana a success.
Listen to the episode here:
