Another crypto fund seeks $1 billion in financing: Asymmetric has received support from a16z, Solana, etc.


Another crypto fund entered the market.

Joe McCann, formerly of Passport and Microsoft, has secured investment commitments from the likes of Marc Andreessen and Solana’s Anatoly Yakovenko.

His goal is to raise $1 billion.

Joe McCann’s new investment house plans to raise $1 billion, which means the fund will join Andreessen Horowitz (a16z), Paradigm and Katie Haun – all of which have raised $1 billion in the past year above financing.

McCann previously ran John Burbank’s Passport Capital systems trading business and served as a strategy executive at Microsoft. He named the newly formed crypto investment agency Asymmetric.

But McCann is keen to point out how his new company differs from the fast-growing capital allocators in the cryptocurrency market. If you asked him to describe Asymmetric, he would probably say “technology company” first and then “investment institution”.

“We have a very technical view on cryptocurrencies,” he told The Block. “We are a fund-licensed technology company.”

To be sure, McCann isn’t the only fund manager touting technical expertise.

A few days ago, a16z announced the creation of the a16z Crypto Research team, a new type of multidisciplinary laboratory that will work closely with a16z’s portfolio and others to solve important problems in the Web3 space and advance the next generation of the Internet and science and technology development of.

The a16z encryption research team will be led by Tim Roughgarden, a 20-year researcher and professor of computer science at Stanford University and Columbia University. Other founding members include Dan Boneh, professor of computer science and electrical engineering at Stanford University, Benedikt Bünz, chief scientist at Espresso Systems, and others.

Additionally, Paradigm is known for hiring top developers to work with investors.

Before launching Asymmetric, however, McCann was also a crypto entrepreneur who ran NodeSource, which he called an open-source “engine that drives software development” on The Scoop podcast in 2019. He also contributed code to Solana’s Anchor set of development tools.

“When it comes to open source tools, that’s what I built my business on,” McCann said.

Members of the Asymmetric team include Brevan Howard former portfolio manager Chris Cecere, former Goldman Sachs executive Bouchra Darwazah and Drizly founder Brett Beller.

“Most Forward Thinking Fund”

McCann has already persuaded some of the biggest players in the crypto space to back his new fund, including a16z founders and partners Marc Andreessen and Chris Dixon, Solana co-founders Anatoly Yakovenko and Raj Gokal, CMS Holdings principal and co-founder Dan Matuszewski, former Coinbase president Asiff Hirji, FTX, Circle Ventures, Tiger Global founder Scott Schleifer, Multicoin Capital co-founder Kyle Samani and managing partner Tushar Jain, among others.

“We are delighted to have Circle Ventures as an investor in Asymmetric, one of the most forward-looking funds in the cryptocurrency space,” said Circle CEO Jeremy Allaire.

CMS founder Matuszewski put it more succinctly: “I like Joe.”

McCann won’t always be “blindly long-term” with his investments, however. It would be relatively pragmatic if the fund gained exposure through specific token trades.

“Let’s say we get a 10% token distribution, and if it goes up 100% in the first place, it’s irresponsible for you not to take out your principal. That’s what a fiduciary as an LP should do.”

This is an interesting position in a market where many funds have “made their fortunes” by betting on a single protocol or token.

Asymmetric will be split into two vehicles: a venture capital fund and a liquidity fund. The former will join institutions like Paradigm and Multicoin in a head-to-head battle in securing allocations for token trading, while the latter will operate somewhat like a Wall Street hedge fund. To do so, it will utilize Wall Street’s most sophisticated tools.

“The purpose of this liquidity fund is to manage liquidity with a level of sophistication that most investors don’t have,” McCann said.

For example, the fund may believe that crypto assets such as ethereum are undervalued. Rather than just buying more ETH over the counter, the fund may be making that point through options.

“If ETH goes up to $10,000 and we buy year-end call options, that’s a better way to use tools to express that view,” he said.

In McCann’s view, most cryptocurrency venture funds and new companies from Market Street in San Francisco are not taking advantage of these Wall Street tools.

“TradVC typically doesn’t need to manage a liquidity book. In crypto, you have to,” McCann said. “Most funds will just buy ETH.”

Posted by:CoinYuppie,Reprinted with attribution to:
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