For example, I always like to see founding teams who have a history of successfully working together, as founder disagreements are a common reason why projects fail. I think it's so important to dig deeper than that. A lot of founders have the misconception that VCs want to see work experience at brand-name companies, so they put together a “team” slide that’s basically just logos of where they’ve worked before. One thing I’d like founders to understand better is how to talk about your background. This is doubly true in venture, where feedback cycles are very long and it can take years before you know whether any particular investment will be successful or not. The absolute hardest thing for investors is to not get caught up in market hype, FOMO, and cycles of greed and fear. My approach is to be as systematic and data-driven as possible when investing-gut feeling is not a strategy! validation from your colleagues or network?Ī: We always do our own due diligence. Q: How much of your process is due diligence vs. We ask ourselves, “What has to be true in order for an investment in this project to give us a 10 times return? How much does the market size need to grow, how much of that market does this particular project need to capture, what do the unit economics and profit margins need to be, and do we believe this team has the ability to execute on all of that?” Our process is to underwrite a 10 times or higher return on our invested capital. Usually, the best deals close quickly, so being able to arrive at a decision quickly advantages investors. Our process is designed to balance speed and accuracy, both of which are important. Q: What is your procedure to get to an investment decision? How long does it usually take to arrive at a decision?Ī: I think process is a very important and often overlooked part of investing. That can be a lucrative strategy, but because of our deep belief that blockchain is a revolutionary technology, we are really searching for the companies that can transform the industry in a lasting way. Especially in crypto, where there are very strongly cyclical markets, many VC’s are comfortable investing in projects that will be profitable short term, but don’t necessarily have staying power. Q: In what ways does AlphaLab Capital do things differently than others?Ī: We really have a long-term perspective and try to focus on projects that will build thriving businesses for years to come. With a focus on the longevity and sustainability of our portfolio and partner companies, as well as the industry at large, we invest in pre-seed and seed-stage companies, incubating and advising passionate founders during a key period of growth. From venture capital to market making, from liquidity provisioning to validator services, Expeditions is able to capitalize on the experience, technology, and liquidity of AlphaLab Capital’s successful prop trading activities. Our focus is in infrastructure, decentralized finance, analytics, and security, as this is where our operational background enables us to contribute significantly in advisory and growth with our portfolio companies, not just investment. What are AlphaLab Capital’s core theses, and what types of companies do you invest in and at what stage?Ī: Born from a long-standing trading firm, AlphaLab Expeditions focuses on the innumerable and constantly evolving cutting-edge opportunities in the nascent crypto space.
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