Multicoin Capital, a new thesis-driven cryptofund that invests with a multi-year time horizon in blockchain tokens, today announced that David Sacks and Bill Lee (Craft Ventures), Marc Andreessen, Chris Dixon, Compound, Vy Capital, Passport Capital, Adam Zeplain (mark VC), Ari Paul (Blocktower), and Elad Gil (Color Genomics, Twitter) now invest with Multicoin Capital.
This announcement quickly follows the addition of Vinny Lingham, the founder of Civic, as General Partner in December 2017, and the official announcement of the firm in October 2017. To date, the firm has issued five token reports focused on fundamental analysis, demonstrating its commitment to thesis-driven investing.
“Kyle Samani and Tushar Jain at Multicoin are among the smartest, most well-informed investors in the crypto space. Their analysis stands out for being consistently thoughtful, high-quality, and prolific, and has contributed to a much greater understanding of important concepts like token velocity, valuations, and understanding the trade-offs in distributed blockchain systems,” said David Sacks, co-founder and general partner at Craft Ventures, founder of Yammer and PayPal’s first COO. “They are not just investors but technologists who know how to evaluate emerging technology in an extremely fluid and rapidly evolving space. I’ve personally learned a ton from them.”
In the past sixth months cryptocurrencies have been legitimized by major financial institutions like CBOE, CME Group, and NASDAQ who have all either launched, or announced plans to launch, Bitcoin futures. Similarly, Robinhood, the popular mobile trading application, recently announced support for 15 tokens starting in February 2018. Coinbase, another cryptocurrency exchange, recently announced a partnership between GDAX (its institutional platform) and Trading Technologies, which powers trading software for hedge funds like Goldman Sachs and JP Morgan. Strong adoption in financial sectors is driving interest in cryptofunds like Multicoin Capital. The firm expects more leading financial services providers to enter the cryptocurrency markets this year.
“We’re very fortunate to have some of the most well-known investors in New York City and Silicon Valley investing with us. The past six months have been absolutely incredible. Since launch, there’s been a torrent of interest in Multicoin Capital, validating the overwhelming need for professional fund managers that understand the market intimately,” said Kyle Samani, co-founder and Managing Partner, Multicoin Capital. “Today there are more than 200 crypto hedge funds in the mix. We stand out by simply doing what other investors like Buffet and Graham did in the stock market. We seek to build a brand and a reputation that accurately mirrors the intellectual rigor we put into each and every position we take.”