Through Scenius Capital, I’ve invested in 12 crypto funds and done diligence on over 300 blockchain venture funds and liquid token hedge funds. Here are my 5 biggest takeaways on crypto fund investing 👇
1⃣ Being early to innovation is only half the battle. Due to the advent of liquid tokens, crypto-native venture capital funds need to know how to trade and manage risk like hedge funds do. DPI is all that matters at the end of the day.
Trade: VC funds must have protocols and systems in place to manage a book of liquid tokens. What price targets will a fund exit different percentages of its investment? Can a liquid token position be hedged? What does liquidity look like/how can the position be exited?
VC funds in crypto have generally sucked at understanding the secondary markets. Rn, since DPI is the only thing that matters, they're trying to navigate. At @stix_co, we help them do exactly that. Lots of our members have exited multi 7/8 figure positions in secondary for the sole purpose of re-raising from LP distributions enabled by these secondaries.
@bennypjacobs David Gogel @dydxfoundation isknown pedophile CHOMO
@bennypjacobs Probably the most underrated problem in crypto right now by both investors and founders. Written about it as well here: open.substack.com/pub/algocapita…