In the dazzling encryption world, where projects are mixed, how should we judge? How to avoid pits?
One of the simple strategies is to “trust someone who is better than you”, to judge the quality of the project from the financing situation behind it.
However, the investment institutions themselves are also uneven.
For example, a VC ranking has been circulated in foreign communities before, in which five investment institutions, LD Capital, DuckDAO, Maven11, DFG, and Moonwhale, were blacklisted.
Today’s article will give you a simple science popularization. I hope you will have a correct understanding of overseas “investment institutions.”
1. What are the star institutions in the crypto world?
A16z is estimated to be the first investment institution to enter the crypto world.
As early as 2013, Bitcoin was considered by most people to be a “Ponzi scheme” and a “tulip bubble”, and a16z led Coinbase’s $25 million Series B financing. By the time Coinbase went public in April this year, a16z became its second largest shareholder with 14.8% of its shares, making it the biggest external winner.
In addition, it has also invested in Uniswap , MakerDAO, Compound, Dapper Labs, Arweave, Optimism, Solana, etc., which have almost all become head blockchain projects.
Today’s a16z, the scale of encrypted funds exceeds 3 billion U.S. dollars. It seems to be the capital beacon of the crypto world, with high attention and strong appeal.
Paradigm was founded in June 2018 and was co-founded by Matt Huang, who graduated from MIT, and Fred Ehrsam, who graduated from Duke University.
In October 2018, Harvard, Stanford, and Yale, the three most notable college endowments, joined forces with Sequoia to inject capital into this mysterious emerging VC organization. In other words, Paradigm was born with a halo from the beginning.
The backgrounds of the other two founders are worth mentioning.
Fred Ehrsam was one of the co-founders of Coinbase.
Matt Huang started his business in Silicon Valley after graduating from MIT, and the company was acquired by Twitter. Since 2011, he has made some early investments and has a very luxurious investment history. The most successful one is undoubtedly Toutiao. He discovered this project when he was traveling in Beijing in 2012, and then he persuaded his father to invest money, leading the end. Additional funding for Toutiao Round A. In addition, Zhang Yiming has also drawn a lot of resources, which has greatly assisted the most difficult B round of financing in today’s headlines. Later, it was dug by Sequoia Capital and led many successful investments in blockchain startups.
Founded in 2017, Multicoin Capital is a “thesis”-oriented crypto fund. They have written many blockchain-themed investment reports, as well as industry-related videos and podcasts, all of which are worth watching.
According to CrunchBase, as of October 2021, Multicoin has raised a total of US$175 million. According to The Information report, Multicoin is raising US$250 million for the third crypto fund (Multicoin declined to comment on The Information’s related reports) According to this information, Multicoin’s current scale in cryptocurrency investment funds is not too large. .
Three Arrows Capital
In 2012, Kyle Davies and Su Zhu founded Three Arrows Capital. Su Zhu is very active on Twitter and has a lot of milk power.
Three Arrow Capital is relatively active in the fields of DEFI and NFT. Sanjian was also one of the driving forces behind the “JPG craze” that began in July.
In addition, other investment institutions worth mentioning include Coinbase Ventures, Binance Labs, and Alameda Research. Because the projects they invest in are all expected.
2. How to treat financing information correctly?
When we see the financing information of a project, what should we pay attention to? What are the possible misunderstandings?
“XX project raised XXX million US dollars, XX led the investment, XX, XX, XX followed the investment” This is the news report we usually see. The lead investment is generally the institution with the highest investment amount in this round of investment. So the lead shot is much heavier than the follow shot.
So we can look at it the other way around. If an investment institution often leads the investment, it also proves that its financial strength is very strong.
Bull Market/Bear Market
In the current crypto world, you may feel that raising funds for a project is not a difficult task. Why? Because of the bull market.
The characteristic of a bull market is “a lot of money”. In this case, there will be “money looking for projects” instead of “project looking for money”.
Therefore, a project raised 10 million US dollars in a bull market and 10 million US dollars in a bear market. The latter obviously has a higher gold content.
3. How to check the financing situation of a project?
Below, I recommend 3 tools to everyone, you can easily check the financing of the project.
In the database of blockchain projects, you can view the basic information of the project, including the official website, profile, team members, which projects have been invested in, and the investors behind them.
CypherHunter can only check which investment institutions are behind, while Chain Broker will display more information, such as the time and amount of financing.
In addition, this webpage will also count the historical rate of return of investment institutions and the financing calendar of new projects, so that everyone can get information in the first time.
The first two are perpendicular to the blockchain, and crunchbase is a venture capital database, but the data on blockchain projects is still very comprehensive.
For example, I can’t search the financing information of dapper labs (the team behind flow) in Chain Broker, just use crunchable.
Fourth, Uncle Jian’s summary
A project is blessed by a star organization, which usually shows that the project has bright spots and innovations.
Of course, this does not mean that we can “follow without mind”, but that it is relatively more worthy of in-depth study.
In short, the purpose of this article is to hope that everyone can learn to judge the quality of projects from the perspective of “investment institutions”, so as to stay away from those garbage projects!
Statement: The above content is for learning and communication only, and does not constitute any investment opinions or suggestions
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/cant-identify-items-by-yourself-you-must-know-these-investment-institutions/
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