Prosecutors working in the case against Sam Bankman-Fried (SBF), the embattled crypto magnate accused of siphoning billions of dollars from users of his crypto exchange FTX, are intent on demonstrating that SBF misled investors through false representations about his enterprise. Yet, one primary motivation behind Investors’ decision to bet on SBF may be their own doing. In an era where unicorns are not just mythical creatures but billion-dollar startups, Venture Capitalists find themselves grappling with not just economic realities but also psychological biases. One such bias that often masquerades as expert intuition is the “halo effect”—the tendency to make judgments about a person based on unrelated characteristics. In this post, I illustrate how the halo effect ruins VC decision-making through three case studies: SBF and the FTX/Alameda fiasco, Elizabeth Holmes with her ill-fated biotech company Theranos, and Bernie Madoff’s infamous Ponzi scheme. Each narrative offers a unique lens to understand how the halo effect can compromise due diligence, cloud judgment, and ultimately lead to poor investment decisions. https://lnkd.in/eZjxYJt2
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Many have argued that TGE is nowadays the primary exit strategy for #crypto and #Web3 VCs. I passionately disagree. While the pump-and-dump strategy is appealing to many as the ultimate short-term strategy, for the sector to grow sustainably, we need both short-term market validation and long-term industry vision. Crypto/Web3, as a sector, has experienced many turmoils and public distrust. The last thing we need is a sudden candlestick followed by a landslide. I am excited to see what 2025 can bring to the Crypto M&A space per this article below. I expect to see more activities and interests from both native Web3 companies and many Web2 newcomers with capital. https://lnkd.in/eCU69hhm
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Here at 2 Punks Capital we're setting out to raise for our second fund and look forward to backing another 25-30 pre-seed to seed companies building consumer applications that are enhanced by crypto As we set out to raise Fund 2 we find an evolving (and significantly more positive) landscape to raise alongside - Strong news on all around crypto assets and companies - Strong sentiment that regulatory and legislative clarity are on the way - Presidential candidates finally referencing crypto (one seemingly far more in favor than the other) - VanEck just said $22,000 ETH by 2030 and various people calling for $500k+ BTC... - More and more daily users being onboarded to crypto with Coinbase leading the pack and launching their smart wallet today (look into it) - StandwithCrypto at nearly 1,000,000 members making clear the crypto industry in the USA is serious and wants to grow and innovate - I hear a major report from a big financial institution will come out shortly showing the returns in crypto venture funds have outperformed nearly all other venture categories for the last decade... - and ultimately for us specifically our fund 1 is doing quite well so we have that going for us as well (thankfully!) Excited to go along for the ride and whether you're invested with us in the past, look to invest with us in the future, or work alongside us in some capacity, what a great time to be in this space. Can't wait to see what happens next
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Digital Asset Trader Auros to Invest Over $50M in Crypto Startups Through Its Newly Established VC Arm #businessdigital-asset-trader-auros-to-invest-over-50m-in-crypto-startups-through-its-newly-established-vc-arm
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VC investment in crypto is on a steady rise, with the median deal size at a strong $3.6 million, according to the PitchBook Q1 2024 Crypto Report. Tom Schmidt, general partner at crypto venture fund Dragonfly, notes infrastructure projects continue to attract investment, “especially as the U.S. market becomes more institutional and people in the post-FTX world want separation between custody and execution.” Read more about VC sentiment on crypto in our latest article: https://lnkd.in/etmWambQ
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Discover how The Spartan Group is mastering the crypto game with a $75 million portfolio, making strategic moves and capitalizing on market timing for robust gains. @TheSpartanGroup #CryptoInvestment #VentureCapital #MarketStrategy
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COINBASE INVESTS IN PUFFER’S NEW $18 MILLION FUNDING ROUND - Revealed today, restaking protocol Puffer Labs has raised a further $18 million in a new Series A investment round. - The round saw participation from major crypto VCs including but not limited to… CB Ventures Electric Capital Kraken Digital Asset Exchange Ventures Mechanism Capital Consensys Animoca Brands - Only a few months ago, in January 2024, Puffer announced that it had received investment from Binance Labs, of the Binance exchange, to help drive its growth and development. - Puffer Finance is a liquid restaking protocol, allowing #Ethereum stakers to participate in validation with just 1 $ETH, rather than the typical 32 $ETH. - Puffer further distributes stakers with a liquid-restaking token (LRT) allowing them to participate in other areas of DeFi while earning Ethereum yield. - The project is built with EigenLayer’s infrastructure and its TVL reached as high as $1.5 billion in early March. Image: Puffer
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#fundingalert 💼Company: SCRYPT 💰Funding: $5 Million ⚡Round: Strategic Round 👥Investors: Braza Bank, with additional participation from venture capital firms including FunFair Ventures, Cabrit Capital, and Atlantic Labs. SCRYPT is a premier Swiss licenced financial service provider with a focus on institutional-grade crypto asset services. They empower institutions and Web3 companies with comprehensive access to the crypto asset landscape. The firm is also pleased to announce that it has doubled its client book and seen trading volume increase 18 times year on year. Sylvan Martin, Marcelo Sacomori, Norman Wooding, Marc Wäckerlin, Cyril Pipaud, CFA, Keith Noyes Read more - https://lnkd.in/gf-nKT2m To share your startup story write us on - contact@startuprise.co.uk #SCRYPT #financial #crypto #funding #fundingnews #news #startup #startupnews #startuprise
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The US gets far to much stick from the Web3.0 community on it's crypto stance,. There is a reason why over half of the VC capital invested in Q3 this year went into US based crypto firms. Furthermore, this is not just a blip, but a long-term trend. It has a startup culture that Europe could only dream of and continues to be the global Web3.0 hub for innovation. #crypto #Web3 #investing
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Senior Policy & Regulatory Strategist - Financial Services, Private Funds & Digital Assets; Advisor to Financial Services and Technology Firms
As #privatefund sponsors continue to think about #retailaccess to #alternatives, Securitize and Investcorp are moving ahead, providing a #tokenized #feeder #fund that will allow retail investors to access Investcorp's #GP #stakes flagship fund, at a $20K individual ticket size. The growing intersection of #blockchain #DLT technology and #regulated #financial #products is only growing. #web3 #privateequity #privatefunds #privatecredit #crypto
