We recently closed 1confirmation fund III, a new $125M venture fund. The fund allows us to continue investing in the companies, cryptocurrencies and NFTs empowering people around the world to have more control of their lives.
We launched our $26M fund I at the peak of the last bull market in 2017 and have since grown AUM to over $800M. Our beliefs about the future have remained consistent since our initial launch 4 years ago:
- Blockchains are shifting power from institutions to people. It started in 2009 with the creation of Bitcoin, which gives people control of money. The Ethereum community has expanded on the seed Satoshi planted by giving people control of marketplaces, data, and identity. We’re still in the early stages of this multi-decade trend: the institutions that control our lives are on the decline and the trust-minimized products that give us more control are on the rise.
- Cryptocurrency has changed the way people monetize online products and thousands of tokens will thrive. Two common mistakes we’ve observed from crypto newcomers are: 1) assuming cryptocurrencies won’t have any long-term value and 2) assuming that Bitcoin is the only cryptocurrency that will have significant long-term value. The truth is that value is based on collective belief and there are a number of reasons people believe an asset has value. Creating a token is simply the best way for creators of internet products to align incentives with users and capture value. Thousands of tokens will flourish.
- Sand Hill Road is displaced by Reddit, Discord, Telegram and Twitter. Venture capitalists aren’t king makers anymore and the physical location of Silicon Valley isn’t the innovation hub anymore. Entrepreneurship is becoming increasingly decentralized, and the next Facebook or Coinbase is more likely to emerge in a Discord than in Silicon Valley. Grassroots online communities are the most powerful force on the internet today.
We are lucky to invest in this industry and work with incredible founders everyday on behalf of a great group of LPs. This is a privilege we don’t take lightly. We pledge to do our small part in helping cryptocurrency reach 1B+ users over the next 5 years by continuing to support authentic teams building products at the bleeding edge of crypto.
In addition to the close of the new fund, we’ve promoted Richard Chen to General Partner. Richard has been an outstanding partner since he joined in 2018, leading our research and pipeline, supporting teams and building products. We’re also expanding the 1confirmation team — if interested in working with us don’t hesitate to reach out!
1confirmation Fund III was originally published in The Control on Medium, where people are continuing the conversation by highlighting and responding to this story.