Navigating the Digital Economy: Michael E. McGuire's Perspective on Web 3 Startups, Regulatory Challenges, and Entrepreneurship

Michael E. McGuire, a dynamic serial entrepreneur and a notable thought leader in the world of fintech, recently shared his insights on challenges facing Web 3 startups, his current projects and the current regulatory landscape in the U.S with BitpushNews at the Bit Block Summit in New York.

Michael's vast experience as the founder of multiple high-growth startups, including the venture fund Twelve22 Capital Management LLC and the strategic consulting firm Triple Trunk Capital, LLC, brings a unique perspective to the table.

Michael E. McGuire also serves as an Adjunct Lecturer at Columbia University. He has also launched the Ivy Entrepreneurs initiative to expand global access to entrepreneurial education.

The discussion provides a thorough outlook into the exciting realm of entrepreneurship in the digital economy.

Bitpush: How do you see the current regulatory landscape in the US affecting the growth and development of Web 3 startups?

Michael McGuire: I think in the US, it's a little bit unfortunate right now that the SEC hasn't been clearer with the guidance for Web3 and digital asset companies. They are making a bunch of actions and writing letters, but unfortunately, this is not the best approach. So, I think, personally, it's getting people to reevaluate whether they want to be in the US or not with their projects. And I think they should be because there's tons of capital here, there are tons of bright people, and the infrastructure's great for work. 

Bitpush: Are there specific regulations that you think are really impactful for Web 3 startups?

Michael McGuire: Yeah, I think understanding whether the token that you're creating with your Web 3 projects is a security or not, right? I think everyone hopes or assumes that it's not a security, but in many cases, it is a security, and being a security is not a bad thing. You just need to trade it on an ATS on a regulated platform.

Bitpush: Any advice you have for Web 3 startups? 

So I think some of the key things for normal startups apply to Web 3 startups when you're talking about building a team, right? You want to try to build that team as early on as possible. Build it with a complimentary team, right? Most Web 3 projects are advanced in that you usually have a technical founder or technical co-founder. A lot of Web 2 projects don't have that technical person, and they're very hard to find, and they are very expensive.

So I think that gives Web 3 projects a little bit of an advantage, but don't just think that "Hey, I'm the CEO of, uh, a Web 3 startup, and I'm a great coder, full stack…, and I built this project all by myself." You can't bring that to market successfully by yourself. You need finance people, regulatory people, and marketing people. So build that team around them and don't be afraid to give them equity or if it's a token economy token for, you know, coming on board early.

Bitpush: What are some challenges you think Web3 startups are currently facing?

Michael McGuire: Sure. So, as we discussed earlier, the SEC has got to be a little bit clearer about their regulations and expectations. And I think there needs to be more of an open dialogue than sort of, you know, after the fact coming after people and writing letters saying, we think that what you're doing is trading securities on an unlicensed platform, and we want to talk to you. So there needs to be much more dialogue. I think Switzerland has done it really well. They have clearly defined it. The challenge with Switzerland is human resources, right? There are not a lot of people in Switzerland, and technology talent is even in shorter supply. So, I hope the US gets its hands around this because it's a great business opportunity and it would be unfortunate if things went offshore.

Bitpush: Do you believe that the current US regulatory framework is adequately equipped to deal with the unique issues posed by Web3 technology? If not, what changes or improvements would you suggest?

Michael McGuire: Yes, I think they're well equipped. There are enough people in the United States who understand Web 3 technology and all the major agencies, from the SEC to FINRA to New York Department of Financial Services. They've all spent a lot of time hiring bright people in the last few years, and they understand this technology really well. So it's there. Um, I think they just need to communicate it. So it's not like compliance through enforcement. It's like, show us the rules of the road and have companies comply with those rules.

And if they don't, then you enforce the regulations. Bitpush: What are some current projects you are working on? Tell us more about the work you are doing at Ivy Entrepreneurs? 

Michael McGuire: So I'm focusing my time on three things right now: teaching at Columbia,  which I love doing; we're launching a new startup on June 25th, myself and the former Chief Legal Officer and former Chief Strategy Officer from Symbridge  called the Digital Asset Solutions Group, where we'll be providing regulatory advice and helping companies with fundraising and growth in the US and European markets, particularly Web 3 and digital asset companies. The balance of my time I spend on a project called Ivy Entrepreneurs, where I've tried to democratize entrepreneurship education. Not everyone can apply and get accepted to Columbia or spend four years in a degree-granting program, but there are a lot of young entrepreneurs or even middle-aged entrepreneurs that can benefit from taking an educational program and learning about it. So, we put them through an eight-week educational program, then we mentor them, then we put them in front of angel investors. And during that time, we're analyzing and evaluating the entrepreneurs and their ideas in order to understand which ones we want to invest in. So, being an accelerator, early-stage VC at the end of it, it will give us a competitive advantage because we'll really know these companies as opposed to just seeing a pitch deck and having a coffee and a dinner with them and trying to make an investment decision.

Bitpush: How did you get into Entrepreneurship? What really sparked your interest in the beginning? 

Michael McGuire: So, I have one undergraduate degree in entrepreneurial studies, and that sort of gave me my love for building businesses and growing businesses right out of Babson College. A long time ago, I went to work for a bank that's now called  J.P. Morgan. I didn't like banking. It wasn't for me. I was more of like, be your own boss kind of person. And so I took an entrepreneurial path and, over the last 25 years, started seven or so businesses. Some of them are successful, some of them failures but learning all the way.

I really enjoy teaching people about the entrepreneurial process. I also got a master’s in International Affairs from SIPA at Columbia University and another bachelor’s degree in Slavic studies from Columbia. I just really like the international realm, and I like communicating with international people and have always thought that understanding different cultures is really helpful in creating new business opportunities.

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