Think it’s important to recognize:
- top tier venture historically has generated 3x (and that was during record low interest rate environment!)
- historically crypto VC has vastly outperformed traditional VC (liquid venture + nascent asset class growing from <$10B to $2.5T in past decade)
- crypto is still mostly early stage in price discovery - even the top 10 networks like Solana and Ethereum
- hardest thing to do is manage risk in a liquid venture portfolio. Most crypto investors have done this poorly round tripping capital
- crypto still carries more risk than traditional VC but think we should be prepared to see returns compression across the board
- remember you’re still taking lot more risk than traditional VC so you should expect higher return than traditional VC but a 3x is still top tier venture
- we’re in a different interest rate regime so 3x may not hold for traditional venture. Crypto is a secular trend think we go to $10T as an asset class but will not be a straightforward or linear path - and so most will resort to leverage and become impatient which puts them out of the game. That’s where outperformance will come - patient investors betting on long term growth of the industry
- top tier venture historically has generated 3x (and that was during record low interest rate environment!)
- historically crypto VC has vastly outperformed traditional VC (liquid venture + nascent asset class growing from <$10B to $2.5T in past decade)
- crypto is still mostly early stage in price discovery - even the top 10 networks like Solana and Ethereum
- hardest thing to do is manage risk in a liquid venture portfolio. Most crypto investors have done this poorly round tripping capital
- crypto still carries more risk than traditional VC but think we should be prepared to see returns compression across the board
- remember you’re still taking lot more risk than traditional VC so you should expect higher return than traditional VC but a 3x is still top tier venture
- we’re in a different interest rate regime so 3x may not hold for traditional venture. Crypto is a secular trend think we go to $10T as an asset class but will not be a straightforward or linear path - and so most will resort to leverage and become impatient which puts them out of the game. That’s where outperformance will come - patient investors betting on long term growth of the industry
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