Multicoin Capital: The Outsider

Multicoin Capital is probably the best-performing venture fund of all time. The crypto investor has won big by placing highly centralized, non-consensus bets on Solana, Helium, The Graph, and more.

If you only have a few minutes to spare, investors, operators and founders should understand the origins of Multicoin Capital. (We will refer to the company as “Multicoin”.) 

  • Multicoin may be the highest-returning venture fund ever. Firms like Union Square Ventures and Lowercase Capital are known for returning funds of 14 and 76 times, respectively. Multicoin’s first venture capital vehicle seems to beat them. 
  • The company bucked the trend and won. When Multicoin started, the investment space was dominated by funds focused on Bitcoin and Ethereum. Founders Kyle Samani and Tushar Jain saw opportunity elsewhere, making reverse bets on Helium, The Graph and Solana. 
  • To drive excess returns, focus bets. Part of Multicoin’s genius is its willingness to back its beliefs with capital. Many of the firm’s top-performing investments are very large, contributing to the fund’s outperformance.   
  • Investing in EOS was a failure… which led to the biggest winner in Multicoin. The company’s outspoken support for alternative blockchain EOS has drawn some false attention. Critics celebrated Multicoin’s mistakes when the project was in trouble. But it was by supporting EOS that Multicoin realized the potential of Solana. 
  • Multicoin has its critics, but the founders are very positive. In the partisan world of cryptocurrencies, Multicoin’s strong support for its investments could anger dissidents. As a result, this company is hated by some but loved by entrepreneurs. Portfolio founders have been exceptionally positive in their contributions to Multicoin. 

In 2017, Kyle Samani (Multicoin founder) and Tushar Jain decided to start a cryptocurrency hedge fund. None of them had ever worked in investing before, let alone running a fund of their own. They haven’t worked at emerging startups in the industry and haven’t built protocols. They are not friends with Vitalik Buterin or Gavin Wood or other crypto celebrities who might lead them to buy Ethereum at the public offering price. Their names mean nothing, and aside from some smart personal investments that started in 2016, they have little to no track record of being fit for the effort at hand. In short, they are outsiders in the crypto space . 

It has proven to be their most powerful weapon. While Samani and Jain may not have the sincerity of a tenured manager or the expertise of a blockchain builder, they bring a powerful flair, especially a willingness to question the status quo. Even a space as new and fluid as cryptocurrency in 2017 has sacred cows and accepted wisdom. With no preconceptions to cherish or factions to protect, Samani and Jain can hone their investment acumen without prejudice, conducting deep research and reasoning from first principles. 

The result was a portfolio that looked very different from almost any other company of the era. Today, Multicoin is not only a viable player in the crypto investment space, but one of its dominant forces. It has built an awesome reputation by placing centralized, non-consensus bets on big winners like Solana, The Graph, Helium, and more. This is high belief, contrarian investing at its best.

Achieving returns like this is not easy, and not only did some of Multicoin’s best investments come close to crashing in every way, but the company itself has weathered negative performance and brutal market shocks. Some of its most high-profile investments, like EOS, ended in shameful failures. However, Samani and Jain have outperformed their peers, generating returns that are likely to be historic. 

In today’s article, we’ll unpack what’s special about Multicoin, covering: 

  • Unlikely origin. Kyle Samani’s first business involved building apps for the ill-fated Google Glass device. Tushar Jain also started an unsuccessful company.  
  • Think in public. Without an established investment track record, Samani and Jain have built a reputation through their thoughtful writing about the crypto space. 
  • Evaluation of LPs. Those who invested in Multicoin’s early tools saw more than just two smart, eager investors. They see a particular strategy with asymmetric upside.
  • strategic shift. Although Multicoin started out as an American hedge fund, its remit has expanded over time.
  • Four bets. The personality of Multicoin as a fund is best understood by looking at four investments, three of which were big winners and one disaster (EOS). 
  • return and reputation. Investors may be judged primarily by their financial returns, but reputation among founders may be the more important leading variable. 

We’ll dive deeper into the company’s operations, decisions, and future in Parts 2 and 3.

Origin: Genesis Block

Kyle Samani and Tushar Jain would be entrepreneurs in the healthcare sector if they succeeded in building their first business, failure put the couple on a path unfamiliar road. 

city ​​of empire

Every August, Washington Square Park welcomes a new batch of teens. Surrounded by New York University (NYU) residence halls and classrooms, the Greenwich Village landmark is home to the institution’s newest resident: the freshman class. 

Among those arriving in midtown Manhattan in the late summer of 2008 were Kyle Samani and Tushar Jain. At six feet tall, with broad shoulders and outspoken, Kyle Samani stands out. The son of a dentist and tech entrepreneur — his father founded a medical records platform called VersaSuite — he conveys a brash Texan confidence. Although he grew up reading tech blogs and deliberately remembering the processing power of Nvidia graphics cards, he entered school with the goal of making his mark on the old world of finance. “I think programmers are losers,” Samani said. Finance is where aspiring Alphas like him go. 

Tushar Jain’s journey was shorter, he grew up in Queens and shares Samani’s interest in technology, especially gaming. He spent many afternoons and evenings playing world builders like Age of Empires and Civilization. Like Kyle Samani, Jain sees himself succeeding on Wall Street. They met during their first week on campus and became friends. 

The global financial crisis soon exposed the fragility of Samani and Tushar Jain’s ambitions: Wall Street was burning. AIG narrowly avoided the same fate as Merrill Lynch sold and Lehman Brothers collapsed a few weeks after its freshman year. Finance is not a sector of promise and power, it is a declining industry. 

Silicon Valley has grown stronger as Wall Street capitulated. Steve Jobs launched the App Store that year, spawning a new wave of startups. Shortly after he arrived on campus, Samani found himself retreating from finance and turning to technology. With businesses like Uber, Venmo, WhatsApp and Instagram coming to the fore, Samani began to see himself less as a budding financier and more as a growing entrepreneur. “Every day, I read funding announcements,” he said of the period. “It had a really big impact and made me realize that I wanted to start a business.” 

Samani’s clarity is combined with admirable confidence and some naivete. “For a while I was convinced that VCs couldn’t find enough 20-somethings to put millions of dollars into building. I absolutely believe that’s true.” 

Can’t wait to start his adventure, Samani returned to Austin for his senior year, learning business construction by working at his father’s company. When midterms and finals were required, he flew back to New York City and fell on a Jain couch. 

Jainism has undergone a similar transformation since passing through the Queens Midtown Tunnel. Like Samani, he began to feel that the traditional financial world was not for those who wanted to succeed. He recalls attending a “dean’s roundtable” attended by the chief investment officer of a major asset manager and finding the old man’s advice tedious. If you want to work in his shop, the CIO said, you need two years in banking, two years in private equity, and two years in business school. Maybe then you’ll be ready to work in such thin air. Jain remembers thinking the advice sounded like “‘color between lines,’ ‘follow directions’ or something.” That wasn’t him, he knew. “I just can’t do it.” 

Upon graduation, Jain evaluated three options. He could work at Credit Suisse where he interned for a summer, join another financial institution where he received an offer, or move to Austin. Samani had told him he could get a job at VersaSuite for his friend, even though it wouldn’t pay him the salary he earned on Wall Street. What he loses in reward, he will reciprocate in freedom and responsibility. 

Four years ago, Jain would have seized the opportunity to work for a well-known company like Credit Suisse. However, he found himself turning down a job at the bank and accepting a position that paid a third of what he set. Like Samani, he was drawn to the opportunity to learn the know-how of building a company.

shiny object

Samani and Jain have been with VersaSuite for a year. While it has overcome the grunt work and clunky dullness of entry-level finance, the pair are “ambitious” and can’t sit still, Jain said. In May 2013, both left to build their own healthcare businesses. Despite living together and choosing the same field, Samani and Jayne went in different directions. 

Just a month before their leap, Google released a device that has quickly become a symbol of the tech industry’s upbeat optimism: Google Glass. Augmented reality headsets are like a pair of bifocal glasses, but frame a small screen instead of a lens. 

By his own admission, Samani found himself succumbing to “shiny new object syndrome,” preoccupied with ideas of how devices might disrupt industries. After all, it’s a new form of computing — and Glass is sure to generate meaningful innovation, providing opportunities for savvy entrepreneurs, just as the App Store has done. Soon after, Samani identified a use case for surgeons and other healthcare professionals. Equipped with a Google Glass device, practitioners can extract electronic medical records or related images to guide care. The front-facing camera makes it simple to record patient interactions or actions for later review. Fueled by his passion and budding healthcare career, Samani successfully raised $5.5 million for his new business: Pristine. 

Jain is more cautious about Google’s latest toy. Although he and Samani have done pretty much everything together and seem to make a good team, he doesn’t want to build apps for unproven wearables in the next phase of his life. Instead, Jain focused on leveraging the observations he made at VersaSuite. His year at the software company showed him the speed at which electronic medical records are proliferating, thanks in large part to the economic incentives included in the American Recovery and Reinvestment Act, better known as the 2009 stimulus. plan. As Jain recalls, qualified physicians made as much as $40,000 for digitizing documents, which led to a surge in patient data. “What’s the best use for this data?” recalls Jain. The answer, he decided, was clinical trial recruitment. Not only does it cost drug companies dearly, but matching patients to new treatments can actually save lives. Like Samani, Jain raised a seed round to bring ePatientFinder to life. His platform makes it easy for doctors to query their databases and identify patients eligible for new trials.

As it happens, both companies followed similar trajectories, growing to several million in revenue and dozens of employees before negotiating a sale. Samani’s company, Pristine, has had a particularly tumultuous journey. Not only did Samani find that the lack of a hands-free display wasn’t among the “three most pressing issues” for surgeons, but Google effectively killed the Glass project. As Samani put his face in our discussion, “That’s a problem.” The focus on servicing the insurance business kept the lights on, but in the end, Pristine was sold. “No one makes money,” Samani said. 

Jain was a little better off, avoiding the kind of disaster Samani had to go through. In total, he raised $11 million in funding for ePatientFinder, but struggled to catch up with larger players. The slowness of innovation in the field hinders rapid iteration: sales take a year, trials last months, and product feedback comes every quarter at best. “It’s always slow. Like, so slow,” Jayne sighed. Realizing he needed to raise more money to endure this endemic lethargy, he chose to sell. Competitor Eligo Health Research, with more money and a deeper product, stepped in. 

Nearly four years after graduating from college, Samani and Jayne quickly achieved their various ambitions, though not the results they coveted. They successfully avoided the lure and profits of Wall Street startups, raised venture capital funding, attracted real customers, and secured an exit. However, both seem to be less than happy with how things turned out. As they did in their first year of college, Samani and Jains began to look outside, looking for the next horizon to run. 
Jain first understood the potential of cryptocurrencies. Although Satoshi Nakamoto’s white paper was published in 2008, Jain learned of it in 2013, just a few weeks after the two arrived in Manhattan to start school. Found this interesting, he bought two bitcoins through Coinbase at a few hundred dollars per unit at the time. “I learned about it and thought, ‘Okay, this is cool,'” Jain said. “But I’m busy. I can’t build anything with it.'” Interested but not forced, he turned his energy to startups. 

While Jain was first in touch with Bitcoin, Samani was the first to discover Ethereum. After selling Pristine, he used his free time to browse AngelList, looking for a startup to join, or a business that could spark his next idea. Samani has set himself a goal of reviewing at least 100 companies in different industries every day. One morning he might choose healthcare and the next day he will turn to fintech. It didn’t take long, though, for him to realize that he’d been focusing most of his time on businesses under AngelList’s “blockchain” category. As he digs into emerging startups in the space, he sees the same name popping up over and over again: Ethereum. Almost every company he follows has built on it. Samani found the white paper, read it, and sent it to Jain. Soon, both sides invested.

For the next nine months or so, Samani and Jain fell down the crypto rabbit hole. What started as a curiosity about Ethereum developed into a widespread obsession. Samani finds that his free time is increasingly taken up by research on distributed systems, cryptography, monetary policy and Austrian economics. To sharpen their minds, Samani and Jain sought out other devotees who could exchange notes to become core members of local bitcoin meetups. One in particular attracted an interesting group, including Factom, the founder of enterprise blockchain. Future Multicoin LP Adam Mastrelli attended these sessions and described their keynotes. The discussions are broad, although they generally focus on how encryption might change the world. Lynn Ulbricht, the mother of Silk Road founder Ross Ulbricht, occasionally joined the proceedings, reading letters from her son’s release from prison. Mastrelli also singled out one person in particular: Kyle Samani. “You can quickly tell who knows what they’re talking about and who doesn’t,” Mastrelli said of the meetings. Of course Samani did. In Mastrelli’s recollections, he always seemed to “have the room,” a tall, burly figure with long hair and candid opinions.

Through these gatherings and their independent study, Samani and Jain realized that their attention had irreversibly shifted to cryptocurrencies. As Jain recalls, “I thought, ‘I can’t do anything else. I’m obsessed. All I want to do is think about this and talk about this.'” As Samani said, by the spring of 2017, he and Jain realized that They have developed a “full-time internet hobby” waiting to become a career.

Evolution: The Making of Multicoin

Over the next five years, Samani and Jain managed to build one of the most prominent investment firms in the crypto space. Much of Multicoin’s rise is due to the pair’s willingness to think openly. 

thinking in public

At first, it wasn’t immediately obvious what form Samani and Jain’s new careers would take. They are entrepreneurs – maybe their best bet is to start their own crypto project? This is of course its time. As enthusiasm for the space grew, various optimists, peddlers, and opportunists set out to launch their own coins, funded by initial coin offerings (ICOs). 

The ICO boom of 2017 saw the debut of surreal projects like Dentacoin, which proposed to disrupt the dental industry by offering tokenized rewards to improve oral hygiene. Jain summed up the market’s insanity: “People think you’re going to use this coin to buy coffee, and you’re going to use this coin to buy bananas…it’s just the dumbest thing I’ve ever seen. It doesn’t make any sense. Jain and Samani realize that while the industry shows technological promise, very few people think critically about investing. Amid FUD and FOMO, who is the Benjamin Graham of cryptocurrency? The famed financier defined the practice of “value investing,” creating heuristics for evaluating companies. Few frameworks can help navigate the pathological candy of ICOs.

Although Jain and Samani’s education was more quantitative, they were both skilled writers. Maybe by sharing their analysis of different projects and trends, they might have an impact? As the Jains say: 

We thought, “Oh, what if we shared our heuristics? It would help better allocate funds in the ecosystem to people who are actually building interesting things, rather than people like Dentacoin.

This seems like the right place to start. Another question naturally ensues: If the two outline their thoughts on why they are investing strongly in the industry, shouldn’t they invest in themselves?

Their early investments in Ethereum paid off, with the currency increasing from around $10 per token to over $200 per token, and Jain’s 2013 Bitcoin investment did well. While these wins give them some latitude, they will need outside capital if they want to run a real fund. They got to work, using their apartment as a de facto headquarters. 

Multicoin Capital: The Outsider

For Samani and Jain, the opportunity is obvious. Cryptocurrencies are poised to restructure the world, but no one really knows how to judge them yet. Those who first understand the industry will make the best use of capital, locking in potentially huge returns. Even better, few institutional investors appear to be chasing the opportunity — and so are those keeping a low profile. According to Jain’s recollection, the only notable crypto funds in early 2017 were Polychain and MetaStable — neither of which shared research publicly. If they do it right, Samani and Jain might build their voice and brand in this vacuum. 

Just because they see an opportunity doesn’t mean LPs will. Winning converts has proven to be a challenge. Institutional investors have little interest in an industry plagued by scammers, and most traditional VCs see cryptocurrencies as a fad. With few other options, Samani and Jain raised money from friends, family and former supporters. They also invested a lot of their own money. By August 2017, they had raised about $2 million to run a hedge fund strategy. In an announcement that month, Samani and Jain revealed the name of their new company: Multicoin Capital. 

Armed with funds, new fund managers begin executing their strategies. Both Samani and Jain are frequent writers, publishing articles on cryptoeconomics, prediction market Augur, smart contract defensibility, and regulation. They also filmed projects they thought were overrated, starting with Ripple. It represents the first example of Multicoin publicly sharing their research, even at the expense of popularity. The willingness to anger proponents of a certain coin to voice their opinion became a hallmark of the fund, with Multicoin eventually sparking the ire of Litecoin and Ethereum Cash bulls, among others. 

By December 2017, Multicoin had built some momentum. Brian Smith, a former Tiger Management analyst and former vice president of finance at a publicly traded e-commerce software provider, joined as chief operating officer and chief financial officer, a major success for the young fund. Multicoin has also added another general partner, Vinny Lingham. The founder of Civic, a $33 million beneficiary of the ICO boom, brings with him the expertise of the builder. Although nominally a GP, Lingham leaves decision-making to other Multicoin partners. Soon after, longtime investment banker Matt Shapiro joined as principal — and Shapiro quickly established himself as a key member of the team as a partner. 

In addition to adding talent to the roster, Multicoin also went viral in 2017. Samani’s post “Understanding Token Velocity” took cryptocurrency Twitter and related chatrooms by storm, catching the attention of entrepreneurs and investors.

unique design

Throughout 2018, Multicoin has been finding and winning new LPs – many of whom have real influence. In March of that year, Reuters published a story about some of the fund’s newest investors, including Mark Anderson, Chris Dixon and David Sachs. Fred Wilson joined shortly after that article was published. Years later, when Jain asked Union Square Ventures’ GP why he invested, Wilson replied, “You guys are willing to make mistakes in public.” It’s no coincidence that Wilson himself publishes ideas almost every day—in Jain and Samani, He seemed to see others bold enough to express their beliefs. Thanks to savvy capital management and the influx of these investors, Multicoin’s assets under management (AUM) hit $50 million at this point. 

What is it about Multicoin that attracts LPs? While researching this article, I had the opportunity to chat with others in the industry. 

First, Multicoin’s writing makes a difference. When I asked Marcos Veremis, a former managing director at Cambridge Associates, how he discovered the company, he replied, “Simply, I started reading their articles…they wrote some great articles.” Jain points out , many have followed this path: 

Well-known VCs see what we publish. They realize we’re thinking about it in interesting ways, coming up with frameworks and heuristics to understand what’s going on. That’s what makes the flywheel spin for us.

In fact, the idea of ​​Multicoin is not only interesting, but different. In 2018, funds emerged that shared an Ethereum-centric view of the industry. “Back in 2018, it was all about Ethereum, Bitcoin and some new Layer 1s,” Veremis noted. 

Multicoin doesn’t have this view, and relatively early on, the fund started backing non-consensus projects and making contrarian views. John Robert (JR) Reed, Partner and Head of Corporate Communications at Multicoin, remembers the downsides of this non-consensus positioning: 

In the early days, all the other funds were yelling at Bitcoin from the rooftops. We are not talking about Bitcoin at all. So, we sit down at investor meetings and they ask “why aren’t you talking about bitcoin?” This has been a strange sticking point for a long time. People are not ready to look at the entire asset class. 

In some cases, Multicoin has also directly challenged Ethereum — a sensitive position given the industry’s many advocates. As we’ll discuss later, Multicoin’s support for EOS — a blockchain that seeks to provide a high-speed alternative — will prove particularly controversial. 

Multicoin’s move makes them unpopular, even if it sets them apart. Ray Hindi, managing partner of L1 Digital, spoke of this dynamic when evaluating an investment in Multicoin: “The Ethereum community will say, ‘Yeah, Multicoin … bad fund.'” But in Hindi’s view , those dismissing Multicoin did not appreciate the intelligence and value of the team from a portfolio construction perspective. While all the other managers are doubling down on Ethereum, Multicoin has made a series of high beta positions. “You look at the funds that were obvious at the time, they all had the same name, the same theme,” Hindi said. One active crypto investor at the time summed up Multicoin’s appeal nicely: “They were as smart as everyone else, but their portfolio looked completely different.”

In addition to Multicoin’s public writing and contrarian views, other attributes have attracted investors. Ray Hindi pointed out the quality of the team, especially Samani and Jain seem to work well together. “They really compliment each other,” he said, adding that because of their long-standing relationship, the risk of a partnership breaking down seemed particularly low — something other managers he’d assessed were not. 

Brian Walls of Bridge Alternatives was also impressed with Multicoin’s leadership. As he explained, one of the reasons he invested in the fund in 2018 was because of the belief that Samani and Jain possessed and their fast “refresh rate”. In an ever-changing space, the team at Multicoin seems particularly adept at improving and updating their mental models. 

Despite these advantages, many LPs rejected Multicoin—a decision that will surely be heartening with hindsight. Walls remembers hosting a hedge fund conference that included Kyle Samani and other prominent cryptocurrency managers like BlockTower’s Ari Paul and Polychain’s Olaf Carlson-Wee. According to Walls, the research proposed by the trio “passed by like a lead balloon.” The traditional financial crowd has little interest in the innovation of cryptocurrencies. “They’re a kind of classic incumbent,” Wall said. “They have their own business, they have their own investment strategy, they manage their money.”

A source recalled a conversation with the endowment around this time. Considering the investment in the Multicoin fund, they mentioned the risks posed by such an unproven team. If Multicoin fails, the endowment manager’s job could be at stake. By contrast, investing in Sequoia Capital or even Paradigm, boasting partnerships with big names, has no such risk. The endowment passed, a decision that likely cost millions of dollars given Multicoin’s subsequent performance. “Now, they totally want to get into Multicoin if they can,” the source said with a smile.

private market opportunity 

In addition to bringing in new prominent backers, 2018 also prompted a change in Multicoin’s strategy — arguably its first major shift. When the fund was established, the idea of ​​applying a venture capital model to the crypto space didn’t make sense. Instead of selling equity in a private financing, the new token offers a product to public investors through an ICO. As the SEC began to outlaw the practice because it resembled the sale of unlicensed securities, a new model emerged. The more serious class of crypto entrepreneurs recognizes that to successfully build durable things, they need more than crazy money. Advice, guidance and professional support are useful. As a result, some projects started offering private token sales ahead of public liquidity. 

At first, Multicoin created a side pocket to capture these opportunities, but it did not match the hedge fund model. In taking this step, though, the company realized that LPs wanted private financing. “Our LPs started coming to us,” recalls Jain, “and they would say, ‘Hey, we read about this deal you did. Can you put more of my money into venture capital?’

To accommodate this, Multicoin started raising dedicated private market funds. Even after attracting celebrities like Mark Anderson, lifting the vehicle is far from simple. Matt Shapiro, who runs most of Multicoin’s investor relations, remembers the period from mid-2018 to mid-2020 as “very tough…very tough.” 

Much of these difficulties are caused by a painful bear market. Although the year started with a rally in cryptocurrency prices to frenzied all-time highs, it ended in a downturn. In January 2018, Ethereum was near $1,400; by December, it had fallen below $85. 

“Everybody saw it go up and then it went down 90%,” Shapiro said, adding that “a lot of tourists or people who were just starting to pay attention were washed away.”

Like many others, Multicoin’s performance plummeted over the course of the year, with the fund posting a total return of -32.9%, The Block reported. Although disappointing on the surface, parsing these returns requires more context. The company’s annual letter adds context, showing that Multicoin has actually outperformed several benchmarks, including Bitcoin and an index of ten coins named “Hold 10” by provider Bitwise. 

Multicoin Capital: The Outsider

The company did particularly well in the second half. When the market tumbled in November, Multicoin shined. While this has helped performance in the short-term, one LP noted that it may have led to unwarranted optimism. “Since then, they have the confidence to time the market,” the source commented, adding that “time does not exist [in crypto].”

Despite their relatively positive performance, many liked Multicoin’s bad year. One source, who asked not to be named, remembered the sentiment at the time that Multicoin was “lucky to be in a bull run, and now these folks are going to learn their lesson.” Samani’s oft-argued online persona has made enemies, especially when he shoots at Ethereum. “People are really ready to hate Kyle and therefore Multicoin,” the same source reported. 

Expansion in Asia

The situation improved in 2019. Bitcoin bottomed below $4,000 in December 2018 and reached $13,000 the following summer. Multicoin thrives in better weather, making many of its most impactful investments. While the company first took a stake in Solana in May 2018, it increased its stake the following year, acquiring several existing private holders. In July 2019, CoinDesk reported that Multicoin raised $20 million for blockchain, acquiring tokens instead of equity. (The firm added the position through its second venture capital vehicle in 2021.) Other savvy investments in 2019 include Helium, Arweave, and Binance Coin. 

Multicoin’s investment in Binance revealed some of the fund’s characteristics and opened up new horizons. Notably, Samani was initially concerned about using Binance: “I remember the Binance ICO,” he said. “I thought they misspelled ‘financial’. I thought it was a scam. We’re not exposing our LPs to counterparty risk.” Soon, his and Jain’s views changed. The breadth of assets available on the platform makes it invaluable, and the speed of execution by the Binance team – damn regulation – is impressive. In a matter of months, Samani went from skeptic to believer and willing to back his optimism. 

One source stressed that the bet is indicative of Multicoin’s different risk profile, especially the company’s willingness to defend its reputation. At the time, few U.S. funds were willing to approach Binance because of its lax compliance with the rules. To this source, Multicoin seemed to be asking, “What’s there to lose?” They followed up, adding, “You either lose badly or you win. Multicoin wins.” bought Binance’s token BNB; today, it’s trading at $388.

While investigating Binance, Samani began to realize how little the company knew about the Asian crypto market: “We started to feel like we needed to get closer to what’s going on there. As an American, that’s not going to happen.” Multicoin started looking for an embedment area Investors in the ecosystem, although it’s not easy. According to Samani, some of the largest global recruiting firms have turned down their business, saying it is too challenging a task. In the end, Samani relocated for a month and a half to conduct field interviews. At a meeting in Shanghai, he met Mable Jiang, an investor in a cryptocurrency-focused family office. An initial friendly debate over the potential of the zone’s Tier 1 led to further meetings. It didn’t take long for Samani to advise Jiang: 

Multicoin’s vision paid off. As we’ll discuss later in the trilogy, by building relationships in China and beyond, Multicoin has expanded its sourcing, developed expertise rare among U.S. companies, and added valuable portfolio support. Few funds are better at providing strategic advice and practical assistance when U.S. investment expands into Asia. 

At the end of the year, Multicoin established a position on another exchange. In the spring of 2019, Sam Bankman-Fried introduced the company to FTT, the native token for investing in FTX. “We passed,” Samani said. “We were all keen on Binance at the time.” Multicoin, though, will track Bankman-Fried’s work. By the fourth quarter of 2019, they had seen enough convincing to buy FTT when the coin was trading below $5; last year’s high was near $80 before falling back to $43.

After a tumultuous previous year, 2019 ended on a high note. While markets have been volatile, with Bitcoin surging and Ethereum sinking, Multicoin has executed on multiple fronts, finding unusual investments and expanding its opportunity set. Samani and Jain must have ended the year in relatively good spirits. After all, Bitcoin production will be halved in May 2020, an event that many believe will boost prices. In preparation, Samani and Jains decided to “go a long way”. It didn’t take long for 2020 to see a spark of optimism for Multicoin.

collapse

In hindsight, we know that Multicoin made several great investments in 2019 and 2020. At the time, however, the fund’s outperformance was not yet evident. Many who associate Multicoin almost exclusively with EOS blame it for the project’s various woes. Meanwhile, The Graph, Helium and Solana have yet to take off. To make matters worse, all three were running out of money. The situation is about to get worse. ‍ 

Bitcoin plunged 50% in two days in 2020, falling below $4,000. In Samani’s view, the sudden downturn stems from a fundamental flaw in the industry’s market structure. Due to the fragmentation of trading venues and the slowness of the Bitcoin and Ethereum networks, arbitrageurs are unable to rebalance pricing during periods of high usage, resulting in huge discrepancies. As prices fell, cryptocurrency mining became unprofitable, causing miners to shut down operations, further exacerbating network congestion. With cascading liquidations, the market entered a death spiral, and if popular exchange BitMex hadn’t stumbled unexpectedly, Jain thinks it would have continued to its logical conclusion:

I’m ready to bring the price of Bitcoin to zero on BitMex. If BitMex hadn’t dropped the moment it did, I think Bitcoin would have dropped to zero that day. BitMex said they did maintenance, and I think that was a very serendipitous timing.

Reflecting on the impact on Multicoin that day, Samani said, “We were never insolvent. But we were hit hard.” Jain called it “one of our darkest moments.” 

There are bright spots in the economic downturn. Multicoin made another strategic shift, deciding to stop actively trading its portfolio. “We realized that you can’t predict a black swan like this,” Jain said. “In January 2020, you can’t predict what will happen in March. We decided to stick to our strengths: asset selection and thesis formation.” The market timed to pay little attention to them. “LPs keep asking me what I think about the market,” Jain said. “I don’t know. I have no opinion.”

Ray Hindi from L1 Digital noticed an improvement in Multicoin’s conversion. “I still remember we had discussions with them that what they were really good at was taking particular risks.” After digesting this, Multicoin “turned the tide in a big way,” according to Hindi. 

The breakup of the market also gave Multicoin the opportunity to prove their beliefs to themselves and the rest of the market. At a time when most investors took a step back from aggressive deployments, the team doubled down on Solana. They also invested in music streaming platform Audius, an act of verification that founder Roneil Rumberg insists on. “It wasn’t like someone was lining up outside the door to lead that round,” Lemberg said. “[Multicoin] is firmly moving forward.”

Multicoin emerged from its own slump as the market stabilized. The mainnet launch of Solana and The Graph that year enabled two long-term investments. Not that the rest of 2020 will be smooth sailing. In July, the company released a research report on Chinese cryptocurrency exchange Huobi, announcing that Multicoin has long been its proprietary token, HT. “We’re pattern matching,” Jain said, suggesting that HT stakes may be similar to BNB. “They basically wanted to be Binance. But their execution wasn’t there. They faced a lot more regulatory pressure than Binance,” Jain said. According to Jain, unlike Binance CEO CZ, Huobi’s founders were “unwilling to take the necessary actions for the business” to deal with this uncertainty. In the end, the value of HT increases, but it doesn’t make sense. 

The company’s investment in dForce was almost an even bigger failure. Hackers stole $25 million just four days after the DeFi protocol announced the Multicoin investment. For Mable Jiang, it felt like a disaster — dForce was the first project she backed. “It was very, very big news for the company at the time,” Jiang said, “especially since our AUM wasn’t that big.” The worried LP called Samani and Jain to find out what happened.

“The magic was, the money came back,” Jiang recalled. Just a few days after it disappeared, the hackers returned what they had taken. Aside from the episode’s lucky ending, what impressed Jiang most was the GP’s handling of the crisis and her unwavering support for her. Multicoin has weathered yet another storm and the good times are finally starting again.  

on fire

If Multicoin struggled to raise funds early in its life, then by the end of 2020 it won’t be in such trouble. “They turned down the funding,” recalls Bridge Alternatives’ Brian Walls. Many people who mysteriously “did not see the email of Multicoin’s first venture capital firm” suddenly seized the opportunity to gain asymmetric exposure to the burgeoning cryptocurrency space. 

In May 2021, Multicoin announced the launch of a new $100 million vehicle called “Venture Fund II.” By then, the industry was in the middle of a ridiculous uptick, with both mature and rebel currencies hitting new all-time highs. Things are only getting better for Multicoin. Helium’s token appreciated from $1.30 at the beginning of the year to a high of $55.22. Solana started 2021 at $1.52 before soaring above $260, attracting users, developers, and investing heavily in the process. While many others have benefited from the bull run, Multicoin appears to be winning more than any other fund, with many of its long-term bets seemingly paying off immediately. 

Zhu Su, founder of Three Arrows Capital, summed up the sentiment, listing Samani and Jain’s investments, adding: “I have to say, [M]ulticoin absolutely shattered the cycle.” 

Multicoin Capital: The Outsider

As we’ll soon learn, the extent to which Multicoin “smashes it” may be not only extraordinary, but historic. 

Four bets: GRT, HNT, EOS, SOL

Multicoin lists 27 projects and companies in its portfolio; over the course of its five-year life, the company has undoubtedly held and traded dozens of other assets. While all of these are part of the Multicoin story, there are four investments that define what Samani and Jain have built more than anyone else: Graph, Helium, EOS, and Solana.

The Graph

In February 2018, Kyle Samani received a grim Twitter DM from Yaniv Tal, the founder of a protocol for querying blockchains. Tal was impressed with Samani’s article titled “A New Model for Utility Tokens,” which explores token models and mechanics. After some quick thinking, the two picked up the phone to discuss Tal’s startup: The Graph.

In a quick call, Tal explained the need for a network query protocol like Ethereum. While MetaMask founder ConsenSys has created a centralized alternative called Infura, Tal thinks this is unlikely to be the right long-term solution. His project leverages the open-source GraphQL coding language developed at Facebook six years ago. 

In Samani, Tal found a like-minded spirit. “I know what Infura is, and I know why Infura is stupid,” Samani said. The service scales queries by operating a large number of individual nodes — an inefficiency that, in his view, makes no sense. After the call, Samani spent about forty-five minutes researching Tal’s solution before convicting. To validate his enthusiasm, Samani had a discussion with Jain and then passed it on to a Multicoin LP who, coincidentally, helped create GraphQL at Facebook. Their backing further reinforced Multicoin’s belief, prompting the company to make a high-conviction, high-concentration bet to invest 4% of the hedge fund in The Graph’s seed round. Samani and Jain will double down on their investments over the next few years.

Multicoin Capital: The Outsider

Multicoin’s investment in The Graph not only demonstrates the company’s willingness to centralize its positions, it also facilitates one of the aforementioned strategic changes. After forking out some of the hedge funds to invest, Multicoin realized it might invest in other private market rounds, pushing the company to spawn a venture capital vehicle.

While The Graph’s road to growth has had many bumps and challenging fundraising efforts, Multicoin’s belief has paid off many times. Today, the fully diluted market capitalization of the protocol’s token, GRT, is $4.1 billion. 

Helium

Notably, the founder of Helium also contacted Samani after reading a post from him — further evidence of the high ROI of Multicoin’s written work. Amir Haleem’s distributed wireless network did not initially utilize cryptocurrencies. However, as Haleem learned more about the nascent space, he realized it was a perfect fit for what he was building. The problem is that he has very little experience building economics for such a project. “In the beginning, I was very naive about token economics,” Haleem said. 

Haleem and Samani established a correspondence. Over the next few years, they exchanged emails, answered the occasional phone call, and met in person when circumstances warranted. In January 2019, Haleem was finally ready for a new funding round. He immediately asked if Multicoin would invest. Multicoin is again betting heavily on the business, deploying more than 11% of its venture funds, following up through hedge funds, and running SPVs for LPs. 

They then started helping Haleem develop the project’s tokenomics strategy. “We spent three months helping Amir think about what a token is because we strongly believe token incentives could be a meaningful differentiator for Helium,” Jain said. Haleem cannot believe the level of support offered by Multicoin. During our conversation, he talked about the phrase “let me know how I can help” is often used by VCs as a goodbye kiss, but Multicoin rolled up its sleeves in a way he had never seen before. 

In addition to funding and strategic assistance, Multicoin stepped up at the launch of the Helium network, purchasing 75 hotspots and setting them up in the city at the launch event in Austin. “Amir made us pay the full retail price,” Jain said with a smile. Once again, such efforts have paid off handsomely. Helium’s fully diluted market cap is $5.1 billion. Given the size of the telecom industry, there is still a lot of room for growth. Jain commented on the topic, stating: 

We’ve spent a lot of time developing Helium’s strategy because we care so much and want to see it work. Everyone in the world deserves an internet connection, and it needs to be cheap. The market is big enough to be worth our time.

EOS

Not all investments in Multicoin have been so successful. Of the fund’s missteps, none have been more serious than its investment in EOS. Multicoin’s partnership with Layer 1 failed to yield returns and tarnished the company’s reputation in the eyes of some in the industry. 

By February 2018, Kyle Samani was disillusioned with Ethereum. The agreement was not sent at the speed he had hoped for. To make matters worse, many of the most talented contributors left. “In the two years I’ve been following Ethereum, the scaling roadmap has changed three or four times. I realized that all the developers have retired, they’ve all gone.” Gavin Wood, one of Ethereum’s co-founders, has moved to A new project on Polkadot, and Vitalik Buterin wasn’t moving fast enough. 

Frustrated by the inactivity, Multicoin started looking for an alternative to Ethereum. An analyst at the company suggested investigating what Dan Larimer was building on EOS. Although he has yet to achieve major success, Larimer has built several high-profile projects, including decentralized exchange Bitshares and blockchain social media platform Steemit.

“By early 2018, we started to focus on EOS,” recalls Samani. “We said to ourselves, ‘You know what? This guy learned a lot about shipping blockchain, and he’s shipping more in crypto than almost anyone else.” 

It doesn’t hurt that Larimer’s latest project, EOS, raised $4 billion in a year-long ICO and gave it execution resources. Larimer has also attracted a strong team capable of meeting the June release deadline.
In addition to Larimer’s experience, an important part of Multicoin’s computation is the congestion of the Ethereum network. Launched in November last year, CryptoKitties showed how increased demand can push gas prices to exorbitant levels. Samani and Jain believe that a blockchain that solves this problem will inevitably emerge, enabling low cost and high throughput. To achieve this speed, EOS compromised on decentralization, a view that industry purists find difficult to accept. Marcos Veremis, a limited partner at Multicoin, said: “At the time, the idea of ​​not moving in the direction of being as decentralized as possible was considered anathema.”

In April 2018, Multicoin shared their paper on EOS and announced their investment: 

EOS is a blockchain and smart contract platform focused on speed, scalability and user experience. EOS uses Delegated Proof of Stake (DPoS) and a “token ownership as bandwidth” model to achieve high throughput and zero transaction fees.

On the day of Multicoin’s post, the EOS token was trading at $15.34. 

If Multicoin stopped making this announcement, it might have avoided most of the rally. But that’s not the company’s style. When Samani and Jain invest in a company, they support it and are not afraid to let the world know. On Twitter in particular, Samani and Jain spread the gospel of EOS to the majority of the audience who didn’t want to have anything to do with it. Ethereum followers find it absurd that someone could overthrow their favorite network, while the libertarian element of the cryptocurrency is outraged at the idea of ​​a centralized project.

When EOS was in trouble, many were keen to ridicule the outspoken fund. “We think it’s a very smart, innovative model,” Samani said. “It turned out to be unworkable. The system became unusable within six months.”

Beyond simple schadenfreude, some commentators have questioned Multicoin’s intentions. At the time, it was not uncommon for investors to “pull up and sell,” where retail investors bought into the hype before scaling up to sell. Twitter critics at the time often suggested that Samani and Jain were no better than EOS holders, trying to shift the blame to bigger fools. 

While retail investors are right to be skeptical of whales in the industry, this preconception doesn’t align with Multicoin’s underlying strategy. From the outset, Samani and Jain took a thesis-driven approach to research-backed investing. Also, while the company does trade aggressively, for the most part it’s trying to buy and hold in pursuit of compounding gains.

An outside source with knowledge of Multicoin’s trading history commented: “If they got out of that position, you could accuse them of adding to it. But they wouldn’t.” While Multicoin did take every opportunity to back EOS at the time, the They never seem to use it as an exit catalyst. Samani shared that the company exited its EOS position at the end of 2018. “We may have sold the bottom of EOS,” he said. Another source said: “I think they lost a lot. I don’t think it’s about a quick flip.”

Ultimately, while Multicoin’s unpretentiousness has made some mistakes, the main complaint seems to be a stylistic one. Every investor backing an early stage company in a volatile industry should not be expected to have a 100% hit rate. “They had a paper, but apparently they were wrong,” L1 Digital’s Hindi notes. “It’s an unavoidable risk.”

Fading(LEFT)

If Multicoin hadn’t invested in EOS, it might have missed its biggest winner. Speaking of EOS, Marcos Veremis said: “It eventually led them to Solana. It was one of the biggest home runs the fund has ever hit.”

After spending months researching Larimer’s project, Multicoin is ready to recognize the potential of another high-throughput blockchain. In April 2018, Samani was introduced to former Qualcomm developer Anatoly Yakovenko, who was working on a project called “Loom.” According to Samani’s recollection, Yakovenko’s referral platform called it “the Nasdaq of blockchain.”

During the two’s first meeting, Jakovenko was impressive — albeit not entirely positive. “There were several things that struck me about the first conversation,” Samani recalls. “One is that he has a hard time explaining how it works. The second is that he has a specific use case.” While many entrepreneurs Samani meets tend to think about their projects from an academic and theoretical perspective, Yakovenko focuses on Build high-performance blockchain-based order books.

As Samani learned more about Yakovenko, he began to think he was dealing with a particularly unusual entrepreneur. While other teams struggled to complete a meticulous white paper, Yakovenko hardly bothered to put together a white paper. All of his efforts seem to be focused on making the highest performing blockchain possible. “He’s by far the most unusual Layer 1 founder we’ve ever seen,” Samani said. 

Although Yakovenko impressed him, it took the team several months to grasp the full potential of what he was building. By early summer 2018, it clicked. In May, Multicoin led a round in the project now called Solana. As mentioned, the company aggressively increased its weight in 2019 and 2020, buying shares from less committed investors. 
Like EOS, some cryptocurrency commentators have criticized Multicoin’s relationship with Solana. In many respects, these accusations follow a similar logic, referring to Solana’s relative focus on speed over decentralization and Multicoin’s role as a vocal proponent. In addition to these blows, critics point out that Solana raised private money, giving venture capital firms a chance to buy at a better price. While the trade-offs required when selling projects to “insiders” are controversial, focusing too much on this ignores the realities of Solana’s history. Amir Haleem, the founder of Helium, sums it up nicely, noting that when it comes to Yakovenko’s project, “access is not really a challenge.” Except for Multicoin and one or two others, for most of the project , no one asked for SOL tokens. A related criticism is that, by allowing “whales” to buy, projects allow their tokens to be disadvantageously concentrated. If a major VC sells its stake, the entire ecosystem could tremble and collapse. Worse yet, bad actors with this power can collude to push prices higher or coordinate selling. 

‍Making these arguments in Multicoin’s case again seems to vastly underestimate the power of the company and misunderstand the fundamental relationship between investors and businesses. “They’ve been very closely involved with every major turning point, every major decision, every funding round we have,” Raj Gokal said of the company. “Multicoin was like a third co-founder to me and Anatoly.” Perhaps Multicoin’s most influential contribution was its partnership with the project of Sam Bankman-Fried, who agreed to build a decentralized system on top of Solana exchange. Not only did it bring Yakovenko’s vision to life, but it also brought Solana to the attention of the wider ecosystem, inspiring its extraordinary 2021. 

Multicoin Capital: The Outsider

To this day, when Solana had problems, Gokal said of Multicoin, “They were the first people I called.”

Performance: Return and Reputation

There are many ways to assess investors, how much ownership can they reliably acquire in a business? How often do they go head-to-head with other companies? What weapons do they have that other allocators don’t have? 

Ultimately, two factors are probably the most important: financial returns and market reputation. Turning $1 into $10 or more is the most important thing at the end of the day for most LPs – but it’s a lagging indicator. Especially in risky trading markets, where trading is restricted, reputation is paramount. In the current market, the founder’s opinion matters most. Builders are in power, and to keep winning in the iterative game of VCs, funds must please the entrepreneurs they support. On both fronts, Multicoin seems to be doing well. 

return

In discussions with various Multicoin LPs, I have a clear understanding of the company’s financial performance. With their help, I was able to write what I believe to be the most thorough and up-to-date assessment of Samani and Jain’s returns. Multicoin declined to comment on the performance.

Currently, Multicoin has four entities that can be assessed: three venture capital vehicles and an evergreen hedge fund. Notably, Multicoin has yet to confirm its latest venture fund, although an October report by The Information put the fund at around $250 million. Given its novelty, we can safely ignore it for now.

We can start by looking at Opportunities Fund I, a venture capital vehicle that Multicoin raised in July 2018. As of Q3 2021, one LP shared the fund’s returns, including multiple of invested capital (MOIC) and distribution of paid-in capital (DPI). Frankly, the numbers are mind-boggling: 

  • The total MOIC is 114.7 times
  • Net MOIC is 89.1x
  • 47.0x DPI

For context, a VC firm with a 10x return on invested capital is considered legendary. Union Square Ventures is one of the most reliable good investors of all time, with a valuation of 13.87x in 2004, at least in 2018. The fund includes Twitter, Zynga and Tumblr. 

In 2015, Fortune ran an article on Lowercase Capital titled “Is This the Best-Performing VC Fund Ever?” Chris Sacca had a 2010 DPI of 3.47x and a net MOIC of 76.19x. 

It’s worth noting that Multicoin’s Opportunities Fund I is only 4 years old, younger than both of these time-honored instruments. Of course, the volatility of the crypto industry means that Multicoin’s numbers fluctuate – and these come from the heart of the bull market. Conversely, many of Multicoin’s winners have yet to reach full value. It may already be the best-performing venture fund ever; in four more years, its returns may be even crazier.

The Solana is the car’s biggest winner, but by no means the only one. Of the 27 investments, 10 had MOIC total returns of 10x or more, and many of them far exceeded that number: 

Multicoin Capital: The Outsider

According to information shared by Multicoin Capital LP

As mentioned earlier, Multicoin has done an excellent job of sizing its biggest winners, specifically betting on Helium, Arweave, Solana, Serum, and Algorand.

One of the challenges for well-performing crypto funds is managing LP allocations. Since Multicoin is a significant investor and supporter of its portfolio, it makes no sense to convert its winners into cash. Not only will it hit the job title itself, it could also lead to meaningful growth. Projects like Solana have appreciated rapidly, but could still compound for a long time. To solve this problem, Multicoin distributes a portion of the rewards in the form of tokens. Companies do this only for assets that they intend to maintain themselves in for future appreciation. 

Although newer, Venture Fund II seems to be off to a good start. While I have received less detailed information about this car from the LP, was able to share a high level of performance. As of September 2021, the fund’s total MOIC has risen 5-6 times. The LP sources I spoke to noted that they thought the numbers were conservative because the holdings were flagged as if the auditors were doing so. Therefore, they may not include locked tokens or discounts. These numbers are impressive given that Venture Fund II is less than 18 months old. 

Finally, we can turn to Multicoin’s hedge fund. Ray Hindi of L1 Digital gave me the clearest picture of how this car performs. He noted that L1 Digital started investing in Multicoin in the fall of 2018. Over time, his firm doubled several times, eventually distributing $4.5 million to the fund. By his calculations, the stake is now worth $115 million and returns 25.5 times. An Axios report late last year showed the hedge fund has returned 20,287% since its inception in October 2017. 

Interestingly, Hindi noted that from a returns perspective, he also sees another fund operating in the Multicoin Alliance: 1kx. Founded by the former founder of a German ride-sharing service, 1kx achieved success by taking the opposite approach to Multicoin. While Samani and Jain’s fund pursued alternative Layer 1 and other special projects, 1kx leaned toward Ethereum and its derived ecosystem, and moved into DeFi, NFTs, and DAOs early. “Both of these guys outperformed everyone we knew,” Hindi said, “and for different reasons, they both did very well.”

Multicoin’s first venture capital vehicle is an LP’s wildest dream. Its impressive performance in Fund Two and its hedge funds demonstrates its ability not only to generate extraordinary returns, but to maintain the consistency of those returns. 

reputation

Sequoia launched a crypto fund in 2022. Its existence is a testament to the growing power of the industry, but the time it took for the agency to embrace the movement hinted at broader trends. The funds that dominate the web2 VC world have been slow to realize the opportunity presented by the likes of Bitcoin. Among Tier 1 companies, it can be said that only the a16z actively jumps. 

Inaction at the top of the food chain leaves room for insurgents. Ask a cryptocurrency founder who they think is the most influential investor in the space, and they might list companies that didn’t exist a decade ago: Multicoin, Polychain, Paradigm, Dragonfly, Libertus, 1kx, Variant, Electric , frameworks, prototypes, etc. These firms emerged as a direct response to the crypto revolution and have established themselves as VC leaders in the space, able to win duels against big old world funds and boulders. 

Multicoin’s track record certainly puts them at the top of this distinguished group, although some still see the company’s investment in EOS and outspoken style against them. “People either love them or hate them,” said one cryptocurrency investor. Another person noted that on a few occasions, they introduced founders to companies that were turned away by Samani’s “disparaging, rude and aggressive” style. 

Those who know Samani say the intensity is not malicious. The same source who spoke about Samani’s outspokenness to the founder explained that while the GP might call it “nonsense” on an opinion he disagrees with, “he’s just expressing an opinion.” Co-founder of Audius Roneil Rumberg made a similar point: “Kyle can be rude at times, but he’s actually a really sweet guy. I think it’s just his way of arguing with ideas.”

For some founders, Multicoin’s immediacy is an attraction. When asked about the fund’s style, The Graph’s head of business Tegan Kline said it “fits very well with The Graph’s culture: put your ideas on the table and fight for them.”

Multicoin and its partners are also popular for other reasons. While Samani may not always have been the most slick orator – although some argue he has become more refined in recent years – a few whispered about him. “Kyle is very special,” said LP Ray Hindi. One of Samani’s most notable strengths is the way he fights for founders. “He’s going to fight for his company,” said one cryptocurrency investor, “for whom he’s going to fight. No fight is too big for Kyle Samani.” Those who find themselves Those on the side of the conflict disliked Samani; those on his team adored him for it.

In addition to his strong commitment to the founder, Samani is an unusual thinker. Those who work with him describe his handling as almost superb. Partner Matt Shapiro said:

I have dealt with a lot of people in my life. I was in the room with well-known successful people — CEOs of big companies, and all of them. I’ve never met someone who thinks, “Oh my god, this guy is smarter than me.” Kyle made me feel that way. The neurons in his brain…he just got the right answer faster than anyone else. 

Samani is the perfect foil for the subtle Tushar Jain. Audius’ Rumberg described him as “gentle, contemplative,” and someone who was “very accurate in speaking.” When a Jain speaks, he usually has something important to say. “Tushar is very strategic,” says Klein, a quality that has a huge impact on the portfolio business. “I met him in Lisbon,” Klein said of Solana’s developer conference, “and we had a 10-minute talk that revolutionized the next three months for me.”
Samani and Jain at the helm , Multicoin’s leadership appears particularly balanced. “Their relationship is yin and yang,” said Audius co-founder Forrest Browning. 

Multicoin may have its critics, but the people who matter most — the company’s entrepreneurs — are unusually optimistic about its work. “Multicoin is the two biggest funds that have helped us the most,” Klein said. Helium’s Amir commented that even if Multicoin did help him build his network, “they seem to be always looking for ways to have value.” Solana’s Raj Gokal mentioned that the general market “doesn’t know” the softer side of the company:” Anyone who has worked with Multicoin knows that these are the best people, even in crypto, in tech.”

Ultimately, Audius founder Rumberg may have said it best: “A lot of people have a lot of bad things to say about Multicoin. Not one of them is the founder of their portfolio.”

Kyle Samani and Tushar Jain, despite being outsiders, were not successful, but because of it. Coming without preconceptions allowed Multicoin’s GPs to see opportunities that others didn’t, although that alone doesn’t explain their performance. A strong desire to understand the space from the bottom up, the willingness to take a contrarian stance, and the courage to make big bets are all important factors in Multicoin’s success.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/multicoin-capital-the-outsider/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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