I've seen many programmers at conferences say, 'This is hard.' Of course, it's supposed to be hard. The risk for many startups is to do something easy, iterate on something that already exists, or try to make it better. I'm focused on solutions that will impact society.
Financial returns dominate as the end-all-be-all for angel investing, oftentimes overlooking the greater impact of those investments on society. Some inventors are seeing another way beyond pure profit in hopes that the right investment leaves a lasting impact.
Ethical investing: "I see a lot of crazy models that I don't pay attention to, like gaming, which is not part of my thesis. It doesn't align with my ethics," says investor Carlos Balbin. "When you're playing a game, you're solving a non-existing problem in the real world. Even if gaming has a market size of a trillion, I would never enter that space because it's useless for humanity unless used for training. Most gaming just distracts people."
With over 20 years in banking and financial services—including roles in commercial and investment banking, hedge fund accounting, and operations risk management at American Express—Balbin brings a seasoned perspective to ethical investing. Post-pandemic, he founded Pathfinder Advisors LLC to consult for small businesses and startups and joined GoingVC as a venture partner to help with deal sourcing.
Blockchain can solve many problems and empower small businesses, but often the opposite happens. If you want to sell your soul to the big ones, go for it, but you're not solving or providing more opportunities to society; you're just perpetuating existing power structures.
Redundancy: For Balbin, the foundation of an early-stage investment thesis lies in evaluating business models, market potential, and team expertise. However, the existing criteria and the confines of having to rely on referrals and relationships for investment means businesses get boxed in, leading to "redundant solutions in AI, fintech, and blockchain."
Misusing blockchain: Balbin sees promise in blockchain technology to empower small businesses but warns against its misuse. "Blockchain can solve many problems and empower small businesses, but often the opposite happens. If you want to sell your soul to the big ones, go for it, but you're not solving or providing more opportunities to society; you're just perpetuating existing power structures."
Instead Balbin urges startups to tackle hard problems with the potential for societal transformation. "I've seen many programmers at conferences say, 'This is hard.' Of course, it's supposed to be hard. The risk for many startups is to do something easy, iterate on something that already exists, or try to make it better. I'm focused on solutions that will impact society."
