I recently started a new section on my channel - a review of venture capital funds investing in cryptocurrencies. The first video about a16z went quite well, so I decided to continue it and today I will tell you about two funds at once - Multicoin Capital and Paradigm.
Multicoin is a first-tier fund that specializes exclusively in investing in cryptocurrencies and related infrastructure projects - like wallets or trading platforms that don't have their own tokens, but are directly related to the digital asset industry. Besides simply buying tokens and stakes in companies, Multicoin Capital is also involved in staking, providing liquidity and other ways to make money from cryptocurrencies. But we, as investors, are interested specifically in the token investments made by this fund. After all, the purpose of this column is to review promising venture capital investors and analyze their portfolios to then take note of the coins and tokens that these market professionals are investing in.
Multicoin Capital has a pretty solid portfolio. Some of the highest-profile assets this fund has invested in include: The Graph - 32 X, Coin98 - 39 X, Solana - 800 X, Math - 20 X and Near - 20 X. In addition, Multicoin Capital's portfolio includes several projects that do not have their own tokens, but are successful players in the crypto industry - for example, Bakkt platform for institutional investors, or Web3 wallet Torus.
In total, Multicoin Capital has several dozens of cryptocurrency investments in its portfolio.
By the standards of venture capital investments, Multicoin Capital is a rather young fund. It was created in 2017. However, when you consider that it inverts exclusively in cryptocurrencies - that makes sense. And although the fund itself is quite young, it has an experienced team of blockchain engineers, banking specialists and qualified investors behind it. Due to the fact that Multicoin Capital has an open team, through their LinkedIn and Twitter accounts, you can make sure that their experience is really not insignificant.
Now let's look at Paradigm. An even younger fund, founded in 2018. This fund also focuses exclusively on investments in cryptocurrency and Web3 startups. Only in addition to investments, it also deals with development assistance to young projects, providing them with both security audits and help with the promotion of their product. Because of this, the Paradigm fund has a very big team, which consists of several dozen people, including programmers, blockchain developers, managers and many other specialists. For the most part, the team is also open and the regalia of Paradigm representatives can be tracked through LinkedIn and social networks.
Paradigm's portfolio is already more solid than Multicoin Capital's. Immediately catching the eye are such industry giants as Chainalysis, Coinbase, FTX and even Diem - a cryptocurrency from Facebook, which not every fund could invest in.
Among the most profitable investments of Paradigm exactly in tokens and coins are Atom - 270 X, Maker DAO - 130 X, MINA - 26 X, Synthetix - 43 X, as well as such projects as dYdX, Uniswap, Compound and Optimism.
To summarize, even though Paradigm and Multicoin Capital funds lag behind in their timing and the coolness of their investments from a16z, which I reviewed earlier, they are still quite good for tracking their investment portfolios and spotting tokens for purchase based on what they have been added to Multicoin Capital or Paradigm portfolios. Only of course, you shouldn't blindly copy the portfolio of these funds as well as any other fund - it's just one of the metrics to evaluate the perspective of a coin. Apart from that, you also need to analyze coins according to other fundamentals, as well as find them in the portfolios of other top funds.