Inside 3 Crypto Funds' Investor Decks
I got my hands on decks for Paradigm, Pantera & Blockchain Capital
Everyone wants to know how crypto funds are raising so much money.
Multicoin Capital announced that it raised $250 million for its third crypto fund in October.
Variant announced its second crypto fund, totaling $125 million, in October.
Paradigm announced that it raised $2.5 billion in November.
Haun Ventures announced an inaugural $1.5 billion fund last month.
Electric Capital closed a $1 billion fund last month.
Bain Capital Ventures announced a $560 million crypto fund last month.
Pantera Capital reportedly plans to close a $1 billion fund this month.
Blockchain Capital is in the process of raising a $400 million fund VI and a $400 million opportunity fund, according to an investor presentation that I got my hands on.
Andreessen Horowitz is in the process of raising a $3 to 3.5 billion fourth crypto fund and a $750 million to $1.5 billion crypto seed fund.
And it’s not just a matter of big fundraising hauls. Some of these firms are building up massive pools of assets under management as they reinvest their returns.
I reported last week how Paradigm’s assets under management have climbed to $13.2 billion and rival Andreessen Horowitz’s dedicated crypto funds have about $9 billion in AUM.
What’s powering these gargantuan fundraising hauls?
In order to answer that question, I got my hands on some crypto funds’ fundraising decks. They reveal how some of the top crypto funds are positioning themselves to prospective limited partners.
I’m letting you in on how these funds are selling themselves to investors. These are their numbers — from middle to late 2021. (I’m not including screenshots of the decks to protect my sources.)
Yes, the crypto markets have continued to evolve: Bitcoin is down 35% over the past 12 months; Ethereum is up 35% over the same period.
Still, I think you’ll find the information fascinating. These returns help explain why old school venture capital firms are diving into crypto. Sequoia is obsessed. Bessemer Venture Partners launched a DAO. Lightspeed Venture Partners is raising a dedicated blockchain fund. Why? Because crypto firms are making a killing.