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David Sacks: Why we Invested in Multicoin

David Sacks
March 12, 2018 | 2 Minute Read

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 velocity, valuations, 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.

Disclosure: This post includes views expressed by David Sacks (“Investor”), who is or was at the time of this post an investor (directly or through an investing entity) in one or more funds managed by Multicoin Capital Management, LLC (“Multicoin”). Multicoin did not compensate Investor in connection with this interview. Investor’s status as an investor in Multicoin funds creates a material conflict of interest since (1) Investor may be strongly incentivized to portray Multicoin and the investments it makes in a positive light, and (2) Investor may be less incentivized to be critical about Multicoin.

Disclosure: Unless otherwise indicated, the views expressed in this post are solely those of the author(s) in their individual capacity and are not the views of Multicoin Capital Management, LLC or its affiliates (together with its affiliates, “Multicoin”). Certain information contained herein may have been obtained from third-party sources, including from portfolio companies of funds managed by Multicoin. Multicoin believes that the information provided is reliable but has not independently verified the non-material information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This post may contain links to third-party websites (“External Websites”). The existence of any such link does not constitute an endorsement of such websites, the content of the websites, or the operators of the websites. These links are provided solely as a convenience to you and not as an endorsement by us of the content on such External Websites. The content of such External Websites is developed and provided by others and Multicoin takes no responsibility for any content therein. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in this blog are subject to change without notice and may differ or be contrary to opinions expressed by others.

The content is provided for informational purposes only, and should not be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. The contents herein are not to be construed as legal, business, or tax advice. You should consult your own advisors for those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by Multicoin, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Multicoin is available here: Excluded from this list are investments that have not yet been announced (1) for strategic reasons (e.g., undisclosed positions in publicly traded digital assets) or (2) due to coordination with the development team or issuer on the timing and nature of public disclosure. * This blog does not constitute investment advice or an offer to sell or a solicitation of an offer to purchase any limited partner interests in any investment vehicle managed by Multicoin. An offer or solicitation of an investment in any Multicoin investment vehicle will only be made pursuant to an offering memorandum, limited partnership agreement and subscription documents, and only the information in such documents should be relied upon when making a decision to invest.*

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