March 12, 2018

Why We Invested In Multicoin

by David Sacks

Multicoin Capital recently announced an impressive list of new investors, of which we are excited to be a part.

Crypto is a unique asset class that requires an investor to combine the skills of a venture capitalist and a hedge fund. Like a VC, you have to evaluate team, technology, market size, competitive dynamics, and go-to-market. However, unlike VC, crypto assets become liquid much sooner; markets are extremely volatile and open 24/7; and new information presents itself constantly. These challenges create the opportunity for an investing strategy that is actively managed yet driven by long-term thinking.

Kyle Samani and Tushar Jain are among the smartest, hardest-working, and most well-informed investors in the crypto space. They first caught our attention with their prolific yet consistently thoughtful and high-quality analysis. This work has contributed to a much greater understanding of important concepts like token velocityvaluations, and trade-offs in distributed blockchain systems. They are not just traders but technologists who know how to evaluate emerging technology in an extremely fluid and rapidly evolving space. We’ve learned a tremendous amount from them.

Multicoin is a firm specifically suited for this new asset class. Kyle and Tushar are building from first principles, taking the best elements from the worlds of venture capital and hedge funds. This is why we invested, and we look forward to continuing our thought-partnership for a long time to come.

David Sacks is Co-founder and General Partner of Craft Ventures. Previously, David was COO at Paypal before it was acquired by Ebay. He also cofounded Yammer, which Microsoft acquired for $1.2B.

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