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I'm not going to ask if anyone has invested with Ego Death Capital, because then I would have to "nice try, fed" myself. I'm just wondering if any stackers have strong opinions one way or another about investing in bitcoin venture capital?
They have a pretty incredible team, including Jeff Booth, Nico Lechuga, Preston Pysh, and Lyn Alden.
I'm also wondering if there are other companies out there that invest in good projects?
Separately, I think it was @Car who envisioned a few SN territories as potentially providing a match between projects and investors, but I haven't seen any evidence of this happening. It seems to me that this would be a great idea for fundraising.
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Wow! Thank you. Maybe I'll go through these and make a separate list of bitcoin only firms.
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Still mark has a good team
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Massive value I got from this post Kontext. Thanks for sharing!
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Thanks! I will also go through them one by one and try to find which one would fit into my needs.
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Recently, as we kicked off our seed funding round, we applied for an investment with Ego Death Capital. Unfortunately, we received a rejection because some VCs prefer not to invest in companies that produce hardware. However, the interaction with Ego Death Capital was very pleasant and professional.
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Are there other bitcoin only VC firms you are aware of that you would feel comfortable mentioning?
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The List mentioned by @Kontext is very good!
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Yes! I'm going through it now.
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Still mark
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I have invested in bitcoin venture companies via a syndicate. I figured people with great ideas and moving in the l direction I wish to see the world move to this I invest in their business.
While the return might be zero I rather go broke funding bitcoin companies then pump money into Nvida or Walmart just to get more fiat gains.
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That's how I'm thinking too. I don't want to invade your privacy, but where do you find these opportunities?
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The list above is a great start. If you are on nostr I can DM you the specifics. I don’t want to doxx too much here. I could be accused of leaking information on these businesses and then get the boot
175 sats \ 1 reply \ @Wumbo 17 Jun
Interesting topic.
A question I have about the "All-Star" line up is: I wonder if anyone got preferred equity options as a benefit of signing on to the project.
With Bitcoin attracting decentralized people. It caught me off guard that so many people joined forces vs just doing their on investing.
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I wonder if that information is available to research. I think Nico Lechuga was the main driving force behind the venture.
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193 sats \ 3 replies \ @Car 17 Jun
Kudos to @siggy47 for sparking an interesting discussion!
I'd like to share a few thoughts on the topic.
Regarding the idea of Stack Network (SN) territories facilitating matches between projects and investors, I recall @Car proposing this concept. Although I haven't seen it materialize yet, I believe it's a fantastic idea for fundraising.
Currently, we've initiated the ~builders territory for innovators, showcasing projects and receiving valuable feedback. At PlebLab, we're 💯 dedicated to supporting early-stage startups, builders, and developers. Our goal is to empower them to achieve success in their respective endeavors. With four years of experience and a proven track record, we're confident in our ability to drive success.
I had the opportunity to meet the Ego Death Capital team briefly at Wolf in NYC earlier this year and have crossed paths with most of the team at other conferences. I've had a meaningful conversation with Jeff Booth, whom I hold in high regard. As one of the few VCs in the space with startup-building experience (more on his background), I appreciate his unique perspective.
I have however written about Bitcoin VCs on Thriller, and this excellent post on SN highlights the importance of VC involvement from the Bitcoin founder's perspective. Additionally, I've explored the concept of Bitcoin Zero-Sum game "ShadowPlay," which delves into the potential of Bitcoin, where the convergence of past, present, and future becomes increasingly apparent, especially when considering Bitcoin companies as an investment.
We'll be conducting a seed round at PlebLab later this year, and I'll be sure to share as much as possible with the Stacker community as we navigate that process.
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Thank you for your insight, @Car. I doubt I'm the only one on SN who is interested in the nuts and bolts of these investments, and your direction is welcome.
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54 sats \ 1 reply \ @Car 17 Jun
Totally down to jump on a call just dm me on Nostr. 🤙
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Thanks!
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Thanks @siggy47. You are very good at inciting some very interesting and meaningful discussions. Not only the post, but every comment is worth reading here.
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Thanks! Interesting!
I'm not against Bitcoin venture capitals and I would not mind trying with a really transparent and good company. TBH have tried searching months ago without finding any.
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Great team. If I was in the market to invest in the bitcoin venture space they are the first and foremost that I would consider.
I was looking into lightning ventures a couple years back and signed up for their syndicate but decided not to move forward.
In Feb 2022 I had the idea of creating a Bitcoin Bond. 5k per bond and it paid $5/day (including principal and yield) for 4 years. 11.5%/yr. Bond proceeds would get invested 62.5% in Bitcoin, 12.5% in MSTR, 12.5% in mining equities and 12.5% in Bitcoin venture, which is why I was looking into the lightning venture syndicate. So, essentially I was trying to acquire bitcoin/bitcoin adjacent assets and pay out in fiat. Anyways, I had a few people interested but my main investor backed out so he could invest more money in some real estate project that was supposed to pay him 15%/yr (he still hasn't gotten paid a penny from that deal yet). I was hoping to raise 100k but would have been happy with 50k, however, without my main investor I only had about 15k of interest so I just scratched the idea and bought more bitcoin out of my cash reserves.
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I was hoping you would respond. I just knew you had considered all this stuff at one point or another.
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When I sold my business I thought my new job would be "investoooor" so I looked into a lot of stuff but in the end I realized it was just a lot easier to convert as much fiat as I can to Bitcoin. I even sold a bunch of other investments so I could buy more bitcoin during the bear and not completely exhaust my cash reserves. In retrospect, I should have just worked more and dumped all my cash reserves into bitcoin but hindsight and all.
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It doesn't sound like it turned out to be too bad a strategy😀
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Good idea indeed. I wonder also what success rate these project have, probably very low but "you have to be in it to win it" I guess :-) Nothing will happen if you don't try ... they say.
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They're a proper team. Booth is a preferred unsung hero and it's for a reason. I personally know projects that have been sponsored by EDC, that have changed the way we use and see bitcoin forever while also fostering massive adoption in the process.
In my humble opinion, they're a net positive
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I never used any Bitcoin venture capital.
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I'm not a fan of crowdsourced investments.
They have an accidental bias for bad investments in them. Not because of malice but because founders want less hastle and fee big investors is less stress. So you'll get those who had a hard time raising funds the normal way on crowdsourced/democratized investment structures.
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What is a layer 3 project?
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I don't have an exact definition, but I think Impervious has been described as one.
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Nice try, fed.
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Ouch
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Actually, I have to watch this post because I am interested to hear what people say. The name is a bit weird, though.
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Unfortunately being a bitcoin VC is pretty fucking hard.
You need to benchmark your performance not only to holding bitcoin, but to holding a leveraged bitcoin position to have a fair benchmark with a similar risk profile.
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I guess it requires investors who are familiar with the apples and oranges nature of bitcoin venture investing.
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Sure. That's not enough though. Just beating bitcoins performance as a VC fund is hard enough. Now imagine you need to beat 3x (or whatever you consider same risk as your start-up portfolio) leveraged bitcoin performance.
Most of bitcoin start-ups rely heavily on bitcoin succeeding, so both the leveraged bitcoin and the bitcoin fund are dependent on that.
If your benchmark is a generic tech VC-fund then, maybe, you may be able to beat the benchmark (if and when bitcoin continues to grow).
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That's stupid. With 3x leverage you will probably get liquidated to 0, not a good benchmark. 1.1-1.2x is a fair benchmark.
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That's the point. With start-ups you probably also get liquidated.
That said, you should obv. adjust your benchmark leverage according to the risk profile of the fund (/start-up).
So. For example, if you invest into a single start-up, you should probably get a 90% failure rate. A simple approximation for leverage would be to check the historical price chart of bitcoin and see what kind of leverage will not get liquidated 10% of the time (historically). You can do other approximations as well.
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Thanks for the insight.
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I like what they are doing, they are essentially trying to seed money in effective ways to businesses that need it, and obviously are looking to see a return on investment.
personally won't invest with them at this point in my life, but I am supportive of what they are doing to grow different ecosystems in this space! Some will turn out well and yield great returns for their risk, and some may end poorly. Capitalism!
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They are retarded, but so are you, so go ahead and throw your Bitcoin away because you feel the need to have a spiritual leader. You simp for influencers so it is not worth my time to even link for relevant tweets. You are part of the idiocy that must bleed out of bitcoin before the world gets "reasonably smart". So lose the sats and get it done fast preferably. Don't waste any more of my time than needed.
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