a $250M fund could do a $5-10M deal every month for two years and still be under-allocated
and there aren’t enough companies raising series B / C / D rounds!!!
every deal i’ve done lately is under $50M valuation
1/ crypto VC is going through an explosive 🧨 phase
there are big funds (>$500M AUM), a lot of small funds (<$50M AUM), and *tons* of prop firms + angels
i’ve done 15 deals in the last 3 months as an angel + small fund @CoinSharesCo VC.
observations + implications... 👇🏾
a $250M fund could do a $5-10M deal every month for two years and still be under-allocated
and there aren’t enough companies raising series B / C / D rounds!!!
every deal i’ve done lately is under $50M valuation
a recent series A financing had two firms competing to take down the ENTIRE ROUND, and it eventually got upsized, a LOT.
if a company is putting up user acquisition / growth and a revenue story, it’s highly competitive
so the valuations go up, but available allocations go down, resulting in an even bigger squeeze on allocators who *need* to deploy
add in the wave of SPACs and direct listings taking later stage opportunities out
there just aren’t enough places to put capital in size rn
what’s a fund to do?
but your pedigree and reputation matter - founders can be choosy since there’s so much $$$
perks include code audits, marketing, hiring support, research, etc
expect to see this grow exponentially (it already has in trad VC)
and once @coinbase IPO goes out at $50B+, even more capital is going to come hunting for ROI in crypto
the crunch is going to get intense
for investors, be careful and DYOR - always down to trade deal notes
for founders, be choosy. raise less. demand more value! your investors work for YOU 🤩
we are about to enter a brand new era of crypto VC and i couldn’t be more excited 💥🧨💥
my personal portfolio including companies and protocols can be found at https://t.co/K3fVxXPq0v (overdue for an update tho!)
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I'm sure someone else has explained this, but it is just so cool and I want to explain how this works.
So Curve is awesome for swaps between similar assets, right? The fact that they trade very close to each other is a key part about how Curve works, using it's custom swap invariant function.
That's step 1
Step 2 is that Synthetix is awesome for creating "synthetic assets" (aka synths) which are assets that trade like other assets, that are backed by another, entirely different asset. Basically, a plastic banana that I can buy and sell like a real banana.
Synthetix has a feature that lets you swap between any two synths with zero slippage and a flat fee. That's because it is simply converting the sythentic asset into another synthetic asset, the backing for the synth doesn't change it just uses a different price oracle now.
This is important. Absolutely no slippage, at any size
Swap $1m sUSD for $1m sBTC? flat 0.3% fee
Swap $10m sUSD for $10m sBTC? flat 0.3% fee
swap $100m sUSD for $100m sBTC? Well, there isn't that many synths in Curve, yet but you get the point. The only limit is the pool depth
— Andre Cronje (@AndreCronjeTech) January 15, 2021
So Curve is awesome for swaps between similar assets, right? The fact that they trade very close to each other is a key part about how Curve works, using it's custom swap invariant function.
That's step 1
Step 2 is that Synthetix is awesome for creating "synthetic assets" (aka synths) which are assets that trade like other assets, that are backed by another, entirely different asset. Basically, a plastic banana that I can buy and sell like a real banana.
Synthetix has a feature that lets you swap between any two synths with zero slippage and a flat fee. That's because it is simply converting the sythentic asset into another synthetic asset, the backing for the synth doesn't change it just uses a different price oracle now.
This is important. Absolutely no slippage, at any size
Swap $1m sUSD for $1m sBTC? flat 0.3% fee
Swap $10m sUSD for $10m sBTC? flat 0.3% fee
swap $100m sUSD for $100m sBTC? Well, there isn't that many synths in Curve, yet but you get the point. The only limit is the pool depth
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To people who are under the impression that you can get rich quickly by working on an app, here are the stats for https://t.co/az8F12pf02
📈 ~12000 vistis
☑️ 109 transactions
💰 353€ profit (285 after tax)
I have spent 1.5 months on this app. You can make more $ in 2 days.
🤷♂️
I'm still happy that I launched a paid app bcs it involved extra work:
- backend for processing payments (+ permissions, webhooks, etc)
- integration with payment processor
- UI for license activation in Electron
- machine activation limit
- autoupdates
- mailgun emails
etc.
These things seemed super scary at first. I always thought it was way too much work and something would break. But I'm glad I persisted. So far the only problem I have is that mailgun is not delivering the license keys to certain domains like https://t.co/6Bqn0FUYXo etc. 👌
omg I just realized that me . com is an Apple domain, of course something wouldn't work with these dicks
📈 ~12000 vistis
☑️ 109 transactions
💰 353€ profit (285 after tax)
I have spent 1.5 months on this app. You can make more $ in 2 days.
🤷♂️
I'm still happy that I launched a paid app bcs it involved extra work:
- backend for processing payments (+ permissions, webhooks, etc)
- integration with payment processor
- UI for license activation in Electron
- machine activation limit
- autoupdates
- mailgun emails
etc.
These things seemed super scary at first. I always thought it was way too much work and something would break. But I'm glad I persisted. So far the only problem I have is that mailgun is not delivering the license keys to certain domains like https://t.co/6Bqn0FUYXo etc. 👌
omg I just realized that me . com is an Apple domain, of course something wouldn't work with these dicks
