Multicoin Capital Review: Top Investment Funds In The Crypto Field
Multicoin Capital is one of the most respected investment funds in the crypto industry. It is presently one of the top investment funds in the crypto field, with a long-term vision and the ability to forecast market moves.
Since its inception in May 2017, Multicoin Capital has invested in a number of successful ventures. Their passionate support for projects, not only in terms of funding but also in terms of product development, finding users to aid the project, and so on, has contributed to the success of many projects to date, particularly Layer 1 initiatives.
The Foundation has provided financial assistance for several successful initiatives as well as methodologies, technology, and products. So, how much potential does Multicoin Capital now have? What are their team’s strengths, and what initiatives have been financed by the fund? Let’s read about Multicoin Capital and the fund’s portfolio with Coincu in Multicoin Capital Review article.
What is Multicoin Capital?
Multicoin Capital is a “theory-based” investment company that specializes in investing in the crypto market via project tokens and shares of blockchain enterprises. It is a hedge fund and venture capital, which was established in May 2017.
Multicoin Capital has established a reputation as a forward-thinking fund, noted for pioneering the development of “economy models” for crypto projects, developing novel valuation methodologies, and challenging long-held assumptions in the crypto ecosystem and conventional financial markets. Multicoin Capital aspires to create actual investments – assisting the projects in which they invest with a team of creative ventures that are pioneers in addressing exceptional market challenges.
Multicoin Capital invests in all crypto levels, from the infrastructure layers to the surface application layers, to the apps that sit between the two, and to the applications that sit on top of the application layer.
Multicoin Capital invests in projects to assist them not just in expanding monetarily but also to help projects and developer teams improve, upgrade, and pioneer in building solutions. Deal with market issues.
Multicoin Capital is an investment fund based on “investment thesis” criteria that invest in cryptocurrency projects by purchasing project tokens and company shares on Blockchain.
Kyle Samani, the co-founder of Multicoin Capital, previously said that the Fund selects venture capital investment in projects with a lengthy period of 5-10 years and is willing to face risks such as goods, the market not accepting, or the development team.
Kyle Samani – Co-founder/Managing Partner of Multicoin
He is a Multicoin Capital Co-Founder and Managing Partner. Samani began coding at the age of ten, captivated by computing. He attended NYU Stern and majored in Finance and Management. Samani works closely with the fund’s portfolio, performing extensive research and developing investing strategies.
Kyle Samani earned a degree in Finance and Management from NYU Stern at New York University in the United States. As a Managing Partner at Multicoin Capital, Samani has conducted extensive research and developed investing strategies for the fund’s portfolio.
Samani claims to have the capacity to digest and synthesize enormous volumes of complicated knowledge while condensing key information into accessible explanations.
He co-founded Pristine, a smart eyewear firm with millions of dollars in sales, before creating Multicoin. Pristine secured $5 million in venture finance before being bought by Upskill in May 2017.
Tushar Jain – Co-founder/Managing Partner of Multicoin
Tushar Jain leads Multicoin Capital’s portfolio, risk management, and staff with a passion for innovative economic models formed by blockchain technology and decentralized financial products.
Tushar is a portfolio management, risk management, and team management expert. He is enthusiastic about the economic model enabled by blockchain technology and is particularly interested in decentralized financial products and blockchain market access strategies. Tushar previously created ePworthyFinder, a health technology business that was bought by Elligo Health Research after raising over $10 million in venture capital. Tushar graduated from NYU with a degree in Finance and Political Science.
Brian Smith – CFO and COO
He has a Bachelor of Business Administration degree and has more than 18 years of expertise in public and private equity investments, investment banking, and corporate finance. Brian formerly worked as an analyst at Tiger Management (where he launched the hedge fund Tiger), as a private equity investor at Fox Paine & Co., as an investment banker at Greenhill & Co., and as the Co-CFO of Bazaarvoice.
Matt Shapiro – Partner
Matt Shapiro serves as a management lead and cultivates partnerships with partners. He has over ten years of expertise in banking, mergers and acquisitions, and big financial asset restructuring.
Mable Jiang – Partner
Mable Jiang is in charge of directing the investment team in China’s Hangzhou area. Jiang formerly worked as a junior partner at Nirvana Capital, a crypto investment company located in Beijing. She has also worked in corporate strategy at Didi (Beijing) and in banking at CitiGroup (New York).
John Robert Reed – Partner
John Robert oversees the company’s communications and marketing. At the same time, he collaborates with other firms to expand Multicoin Capital’s portfolio. He specializes in early-stage technology commercialization and has over a decade of public relations expertise. Robert formerly worked as a Senior Director at Jones-Dilworth Inc., a well-known marketing consulting business, before joining Multicoin Capital.
We will continue the Multicoin Capital Review article with the categories in which the project invests.
Multicoin Capital welcomes investments in a wide range of cryptocurrency-related project concepts. The Fund embraces risks in terms of technology, product, development team, and long-term projects lasting 5-10 years.
With a goal of expanding into all elements of the cryptocurrency industry, Multicoin Capital has invested in over 50 projects in areas such as CEX, DEX, NFT, yield farming, infrastructure, and data… and below, Coincu will evaluate some typical projects in which Multicoin has invested.
Layer 1 and Layer 2
In addition to the two oldest brothers, Bitcoin and Ethereum, this investment fund invests in a variety of additional names, including:
- NEAR Protocol: In July 2019, Metastable and Accomplice led a $12 million funding round, including participation from Electric Capital, Pantera Capital, Amplify Partners, Multicoin Capital, ACapital, Coinbase Ventures, IDEO Colab Ventures, Scalar Capital, and Ripple’s Xpring. And it is well known that SOL is sold for $0.1 – $0.2 in this round.
- Solana: Multicoin was among the first to support and invest in Solana, beginning with the first round. Maybe Solana has become too familiar to everyone in the crypto company at this point. Solana was formed in late 2017 by former Qualcomm, Intel, and Dropbox employees.
Solana is a blockchain technology-based ecosystem. The Proof of Stake protocol is used in the project, with a focus on scalability without losing decentralization or security. When it comes to growing ROI, this is considered a typical Multicoin Capital project, with a rise of more than 12,000% – an extraordinarily amazing figure. This is also a high-investment initiative for Multicoin Capital.
- July 2019: Distributed Global, Blocktower Capital, Foundation Capital, Blockchange VC, Slow Ventures, NEO Global Capital, Passport Capital, and Rockaway Ventures join Solana in a $20 million Series A fundraising round. In this financing round, SOL is sold for between $0.2 and $0.25.
- June 2021: completed a $314.15 million private sale headed by Andreessen Horowitz (a16z) and Polychain Capital, with participation from Alameda Research, CMS Holdings, CoinShares, Jump Trading, Multicoin Capital, and Sino Global Capital. The token sale price in this round, however, has not yet been published.
- Dfinity: In August 2018, Dfinity completed an investment led by a16z and Polychain Capital, with participation from SV Angel, Aspect Ventures, Village Global, Multicoin Capital, Scalar Capital, and Amino Capital, as well as SV Angel, Aspect Ventures, Village Global, Multicoin Capital, Scalar Capital, and Amino Capital, KR1.
- Nervos Network: Nervos successfully received $28 million in July 2018 from a number of well-known investment groups, including Polychain Capital, Sequoia China, Multicoin Capital, Blockchain Capital, Matrix Partners China, 1kx…
- Kadena: With a capital of $2.25 million, Multicoin and several other funds participated in the seed round in 2018.
- LayerZero: In September 2021, the project with a blockchain platform successfully received $6.3 million in Series A funding from Multicoin Capital and Binance Labs.
- StarkWare: In October 2018, Multicoin Capital led a $30 million Series A investment in StarkWare. Because of the concept of developing zk technology, this is one of the projects trusted by Multicoin.
- Multicoin Capital also invests in a number of other projects, including Algorand, Thorchain, Mina, Tari, and others. Yet, the specifics of their investment series have yet to be released.
Lending/Yield Multicoin Capital has invested in the following farming projects:
- Oxygen: In February 2021, the project received $40 million, led by Alameda Research, with participation from additional investment firms like Multicoin Capital, Genesis Capital, and CMS.
- Saffron Finance: In August 2021, the project secured $2 million in a strategic fundraising round led by Multicoin Capital, Dragonfly Capital, Coinbase Venture, and others.
- dForce: In March 2020, dForce secured $1.5 million in funding from Multicoin Capital, Huobi Capital, and CMB International to launch a lending initiative.
- Swivel Finance: Multicoin has participated in two investment rounds of Swivel Finance, as shown below:
- 11/2020: Multicoin Capital leads a $1.15 million fundraising round.
- Multicoin Capital will invest $3.5 million in the next round of fundraising in October 2021.
- In addition, Multicoin Capital is involved in a number of other initiatives, such as Timeswap, Alpha Laboratories, and Beta Finance, in order to improve Lending/Yield Farming. In general, this fund is quite interested in the seed round and strategic phase of the project, which is still in its early stages. And it can be observed that the majority of them do not place a high priority on leading initiatives such as Compound or Aave, but instead invest in new ventures.
Multicoin Capital’s exchange investments are divided into two categories: CEX, DEX, and Derivatives. While the investment fund has very few exchanges up to now, the presence of the exchanges that are pouring money by Multicoin belong to the Solana ecosystem, accounting for a reasonably significant share – indicating that they are highly important – demonstrates that they are very important. Take an interest in this ecology.
- OpenOcean: In March 2021, the OpenOcean exchange received a $2 million investment from investment funds, including Multicoin Capital, CMS, Kenetic, LD Capital, and Binance.
- FTX: In July 2021, FTX announced the launch of a Series B investment round, touted to be the biggest in crypto history, with a total value of up to $900 million and involvement from approximately 60 notable names like Multicoin Capital, Coinbase Venture, Paradigm…
- Saber: In July 2021, the Solana ecosystem stablecoin exchange secured $7.7 million in a seed round led by Race Capital, with participation from additional investment groups, including Multicoin Capital, Jump Capital, and Social Capital…
- Perpetual Protocol: In August 2020, Multicoin launched a $1.5 million strategic round to fund the protocol that permits the production of eternal futures contracts.
- Drift Protocol: This project has received $3.8 million in a seed round sponsored by Multicoin Capital, as well as many other names such as Jump Capital, Alameda Research, LedgerPrime, Not3Lau Capital, and others. The concept of an on-chain decentralized futures market built on Solana’s Dynamic AMM.
- Strips Finance: Strips Financial received $8.5 million in October 2021 from a variety of firms including DeFiance Capital, Fabric Ventures, Morningstar Capital, and Multicoin Capital.
- Qilin Protocol: In May 2021, the Ethereum derivatives project received $800,000 from investors, including Multicoin Capital, Continuing Capital, Math Foundation, Fundamental Laboratories, and others.
- UXD Protocol: In September 2021, the project reported that it had secured $3 million in a seed round sponsored by Multicoin Capital, with participation from Alameda Research, Defiance Capital, CMS Holdings, Solana Foundation, Mercurial Finance, and others. This is a proposal to create stablecoins by simultaneously opening long and short bets.
- REALY – Strategic: In April 2021, Multicoin Capital and SNZ Holding invested in this Solana metaverse project.
- Burnt Finance – Seed: Burnt Finance is a Solana ecosystem NFT auction platform. In May 2021, prominent funds, including as Injective Protocol, Multicoin Capital, Mechanism Capital, and Alameda Research, contributed $3 million to the project.
- Jenny: Jenny is an NFT DAO that will create a collection of NFTs that will be controlled jointly by UJENNY holders. The project received $7 million in investment in May 2021 from Multicoin Capital, Ascensive Assets, Animoca Brands, and Metapurse. The money received in this round was used to assist the project’s NFT collection on the Unicly platform, a forked AMM project by Sushiswap that allows NFT ownership to be exchanged.
- Community Gaming: Since July 2021, the guild platform that runs the e-sport event has also raised $2.3 million. CoinFund led the round, with Dapper Labs, Animoca Brands, Multicoin Capital, 1kx, Warburg Serres, and Hashed also participating.
- Project Galaxy – Seed: Project Galaxy offers the infrastructure for NFT-as-a-service. The project enables anybody to design, distribute, and gamify NFTs using on-chain data without requiring authorization. The project received funding in May 2021 from Multicoin Capital, Divergence Ventures, Hard Yaka, Blockchain.com Ventures, IOSG, Draper Dragon, Multiplex Ventures, and Fifth Era.
- Hawku: In October 2021, the project received $4 million in investment from Lightspeed Venture Partners and other funds like Dragonfly Capital, Multicoin Capital, Alameda Research, Animoca Brands, and Solana. This is a marketplace for Zed Run, a horse racing game.
- Tibles – Seed: $1.14 million was invested in Tibles by Multicoin, Dapper Labs, and CoinFund. This is a Flow blockchain project that will be invested in May 2021.
- AI Alethea: In early August 2021, the project stated that it had secured $16 million from funds like Metapurse, Multicoin, Crypto.com Capital, and Alameda.
- Helium is a blockchain-based decentralized peer-to-peer wireless network (Decentralized Wireless Network). In June 2019, the project secured $15 million in a round C investment round headed by Union Square Ventures and Multicoin Capital from investors like Khosla Ventures, GV, FirstMark, and Munich Re Ventures. Finally, in August 2021, they successfully raised $111 million in Series D funding for the project.
- The Strategic Graph: The Graph protocol enables the indexing and querying of data from the Blockchain. Multicoin Capital led the seed round of this initiative in January 2019, raising $2.5 million. This fund, together with Framework, ParaFi Capital, and Coinbase Ventures, will participate in the next investment round of $5 million in July 2020.
- Arweave is a blockchain data storage project based on the Proof of Access consensus algorithm of the next generation. Since November 2019, the project has secured $5 million from investors, including Multicoin Capital, Union Square Ventures, and a16z.
- Eden: In September 2021, Multicoin Capital sponsored a $17.4 million funding round, which included firms like Electric Capital, CMS Holdings, and Divergence Ventures.
- Dune Analytics: A project that lets you extract data, query it, display it, and distribute it on Ethereum. The project raised $2 million in financing in September 2020 and another $8 million in August 2021, both times with the involvement of Multicoin Capital.
Conclusion of Multicoin Capital Review
Ultimately, Multicoin Capital intends to invest in several parts of the cryptocurrency market. They concentrate on other sectors like as NFT, derivatives, end-user services, infrastructure, and other applications. Moreover, Multicoin Capital is often observed in the early phases of a project’s funding (seed round, strategic round).
Nevertheless, Multicoin Capital has certain shortcomings that reveal their weakness when they are not very interested in sectors like Gaming, Metaverse, Stablecoin, and so on, despite the fact that they are now one of the top trends. Large investment firms, including Andreessen Horowitz (a16z), Paradigm, and Binance Labs have shown enthusiastic support.
As can be observed, the majority of the projects in the portfolio are based on Ethereum or Solana. It’s reasonable that the first initiatives they invest in are on Ethereum since it’s the most fertile ground with the greatest investment prospects.
Being a pretty common name in the bitcoin investing area, Multicoin Capital is regarded as a location with a very clear goal and investment style. On the other hand, they clearly demonstrated their investing views since most were quite interested in the early stages of the new project’s existence. Hopefully the article Multicoin Capital Review has helped you understand useful information.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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