Cofounder John Callaghan suggests that many more investment companies are tracking #cryptotwitter than they were a year ago, but True Ventures isn’t necessarily. Like hardware, synthetic biology, and many other areas where True has made early and often lucrative bets, True was pulled into the world of digital assets in 2014 largely by previously-backed founders and who are increasingly becoming this brave new entrepreneur. have gone to the area. There are a lot of them. Callaghan said that 55 of the 388 founders in the “active” True Ventures portfolio are currently working on digital assets.
Investing in some of these tokens and protocols and DAOs – decentralized autonomous organizations without any central leadership, but rather communities organized around a specific set of rules – is not for the faint of heart. But this is kind of the idea. Like many early investors in the space, Callaghan is relying on a willingness to leap into the great abyss to produce massive returns in the future. He compared investing in decentralized assets to more traditional venture investments with a prominent “asterisk.”
As he explains, “we are always looking at the people, the people, then the market, then the technology.” With digital assets, there is a comparatively new aspect, “which is the structure, which is completely different. ” While some deals may involve old-fashioned equity, in other cases, True may “purchase rights to a token sale, and tokens also differ in that they may have governance rights or voting rights or vesting rights.” [schedules] or lock-up. Or, they might not.
Of course, Callaghan isn’t crazy. While the firm’s limited partners are pleased that the initial investments that puzzled them — including bitcoin and ethereum — now look presentational, True’s team knows what it doesn’t know, which is why it’s a global Gus Coldabella was brought on to focus on public policy. and regulation.
Coldabella spent the last year as general counsel and chief compliance officer of Paradigm, the crypto-focused investment firm that reportedly closing a huge new fund) He spent a little over a year with digital currency company Circle, where he served as the company’s chief legal officer.
Perhaps most important to True, Coldabella was for some time the chief legal officer at the US Department of Homeland Security, and he still has relationships with regulators, which can be very helpful when you’re trying to invest in digital assets. Have been
In fact, ColdBella’s key function at True will be primarily to help the firm – and its portfolio companies – navigate new and changing regulations as they are written and to work closely with the firm’s internal crypto team, Including partner Adam D’Augelli; firm associate John O’Connell; Dave Balter, founder and CEO of crypto analytics platform flipside crypto; and entrepreneur and true partner Kevin Rose, who is highly popular “modern finance“Podcast.
He will have lots of people to stay updated with. Among True’s many related bets, it has poured money into the digital asset protocol ampleforth And opinion finance; Marketplace that includes that trading platform futures swap And art section, a project that generates original artwork on the Ethereum blockchain; and infrastructure software, such as strong.
The big question ColdBella is trying to help answer right will be, of course, how a venture firm deftly and safely participates in something that isn’t even a company. “Not only is this important and important to us and our funds, but it’s something the SEC and global governments are trying to figure out as well,” Callaghan says.