“Bitcoin-related ventures have the potential to generate life-changing returns,”
-Mike Jarmuz
In a recent episode of the Capital Ideas podcast, co-hosts Nick Morgan and Dara Albright interviewed Mike Jarmuz, founder of Lightning Ventures and CEO of Thunder Funder.
As the largest Bitcoin-focused angel investing network, Lightning Ventures is making waves by enabling everyday investors to access Bitcoin projects that were previously available only to accredited and institutional investors. The interview delved into Jarmuz’s journey, thoughts on Bitcoin investing, and the challenges and opportunities for everyday investors in this space.
The Vision Behind Lightning Ventures and Thunder Funder
Jarmuz’s passion for Bitcoin shines through in his discussion about his companies, Lightning Ventures and Thunder Funder. Lightning Ventures focuses on angel investing in Bitcoin-centric startups, while Thunder Funder operates as a cutting-edge funding portal that opens up investment opportunities to a broader audience. As Jarmuz explained, the platform seeks to democratize access to Bitcoin projects, allowing smaller investors to participate in an industry that was once the exclusive domain of large financial institutions.
This democratization is particularly significant for those who believe in the potential of Bitcoin and want to invest in startups leveraging this technology. Jarmuz noted that these investment opportunities enable individuals to capitalize on the potential for substantial returns that early-stage technology companies can offer, which has historically been out of reach for everyday investors.
Bitcoin: A Complement to HODL Positions
Jarmuz shared his perspective on the importance of investing in Bitcoin-focused companies, even if one already holds Bitcoin. He described Bitcoin as a “must-have” asset, suggesting that whether through dollar-cost averaging or seizing the right moment, securing a Bitcoin position is fundamental. However, Jarmuz believes that investing in companies building around or with Bitcoin offers a different kind of opportunity.
“When it works, it works really well,” Jarmuz stated, emphasizing that early-stage investments in Bitcoin-related ventures have the potential to generate life-changing returns.
He drew parallels to the early days of the internet, explaining that one didn’t invest in the internet itself but rather in the companies building around it. Jarmuz envisions a similar scenario with Bitcoin, where the infrastructure companies that bridge the gap between traditional finance and Bitcoin could offer immense opportunities as the ecosystem matures.
Addressing Access Challenges for Everyday Investors
One of the most compelling parts of the discussion was Jarmuz’s critique of the current investment landscape, which often restricts opportunities to accredited investors. He questioned the logic behind allowing individuals to invest limitless amounts in speculative assets like Dogecoin while restricting them from investing modest sums in promising startups. “How is that okay?” Jarmuz asked, highlighting the disconnect between regulatory restrictions and genuine investment potential.
Thunder Funder aims to break down these barriers by leveraging regulation crowdfunding (Reg CF) to enable smaller investors to participate in Bitcoin-focused ventures. By democratizing access to capital, Jarmuz hopes to create a more equitable investment landscape where everyday people can support and benefit from the growth of innovative startups.
Innovation and the Potential Impact on the Ecosystem
Jarmuz emphasized the profound impact that opening up investment opportunities can have on innovation and transformation. He argued that by enabling a more diverse pool of investors to participate, startups gain quicker and more flexible access to capital, fostering a true marketplace for funding ideas. This access is particularly crucial for companies working on Bitcoin-related projects, often requiring patient, long-term investment strategies.
Jarmuz also expressed excitement about the potential for Bitcoin to revolutionize the way companies operate.
He envisions a future where Bitcoin becomes a standard in payroll, payments, and even rewards programs, with traditional companies like Uber potentially integrating Bitcoin into their operations. This shift, he suggests, will create a wealth of opportunities for startups that are building the infrastructure necessary to support such integration.
Angel Investing as a Learning Journey
One of the most inspiring takeaways from Jarmuz’s interview was his belief in the value of angel investing as a continuous learning process. He shared how his journey in angel investing allowed him to stay at the forefront of technological innovation, whether in Bitcoin, robotics, AI, or other cutting-edge fields. By making thousands of investments and closely following the progress of each startup, Jarmuz gained invaluable insights into the dynamics of entrepreneurship and technology.
His experiences even translated into his day-to-day life as an entrepreneur. Jarmuz shared an anecdote about his time as a café owner in New York City. As a result of his exposure to the world of startups, he signed up for every delivery service available, which ultimately allowed his café to thrive during the COVID-19 pandemic. This experience underscored his point that investing in emerging technologies can provide valuable insights that extend beyond financial returns.
Conclusion
Mike Jarmuz’s insights offer a glimpse into the exciting possibilities that Bitcoin-focused angel investing presents. By bridging the gap between traditional finance and the emerging world of Bitcoin, Jarmuz and his ventures are democratizing access to opportunities that have the potential to change lives. For those looking to complement their Bitcoin holdings with investments in companies building the future of finance, Lightning Ventures and Thunder Funder represent a gateway to the next wave of innovation in the Bitcoin ecosystem.
The interview serves as a reminder that angel investing is not just about financial returns; it’s about being part of a journey, learning, and contributing to the growth of transformative technologies. As the world continues to adapt to the possibilities of Bitcoin, it’s clear that everyday investors now have a chance to play a pivotal role in shaping the future.
Nick Morgan is President and Founder of ICAN, the Investor Choice Advocates Network, a nonprofit public interest litigation organization dedicated to serving as a legal advocate and voice for everyday investors and entrepreneurs. He was previously a partner in the Investigations and White Collar Defense Group at the law firm Paul Hastings. Morgan also previously served as Senior Trial Counsel in the SEC’s Division of Enforcement.