Multicoin Capital, a new thesis-driven crypto fund that invests with a multi-year time horizon in blockchain tokens, today announced its inaugural fund with more than $10 million already committed. Multicoin expects the fund to be fully subscribed by the end of Q1, 2018.
As part of the news the company also announced that David Johnston is joining its advisory board. Johnston founded the first ever crypto fund, the Dapps fund, in 2014. He also cofounded Factom, a decentralized system that uses blockchain technology for smart contracts, digital assets and database integrity, and currently serves as the its chairman. In 2013 he co-authored the “General Theory of Decentralized Applications,” which predates Ethereum. Multicoin works with him and others like him on a daily basis to analyze investment opportunities and refine investment theses on behalf of investors.
Multicoin combines elements of venture and hedge funds to invest in a new kind of capital market, one that combines venture-scale returns with public market liquidity. The inaugural fund currently focuses on seven core theses: store of value, privacy, confidential transactions, decentralized cloud, decentralized prediction markets, decentralized exchange, and alternative consensus. Multicoin will add more theses over time as the market matures.
Kyle Samani, managing partner, Multicoin Capital said:
“Unlike other funds Multicoin makes investment decisions based solely on first principles and a deep understanding of the underlying protocol technology. Our team rigorously research blockchain protocols, teams, and market opportunities to deliver venture capital economics with public market liquidity.”
Multicoin Capital’s custodianship system leverages multi-signature technology that stores everything completely offline while still coordinating the generation and signing of codes. Private keys never touch internet-connected devices.
Tushar Jain, managing partner, Multicoin Capital said:
“Blockchain technologies will create trillions of dollars of value over the next decade, but investing in tokens is fundamentally different than investing in companies. New tools, heuristics, and security measures are required to responsibly invest in this ecosystem. Our technology and security measures and our experience as serial technology entrepreneurs set us apart from every other firm in the industry and make us extremely attractive to LPs looking for more secure ways to invest their capital.”