Exploring Archetypes of Crypto-Driven Limited Partners

This week on Swimming with Allocators, Earnest and Alexa welcome Diego De Colombres, founding general partner of Dissent Capital. Diego shares his journey from equity research to launching a specialized crypto fund of funds. The discussion also explores the importance of backing emerging managers, building concentrated portfolios in a volatile market, and the evolving strategies required for success in crypto venture capital. Key takeaways include the value of specialization over generalization, the risks of over-engineered fund structures, and the growing significance of trends like stablecoins and the intersection of crypto and AI. Listeners will gain insights into how disciplined selection and a long-term perspective can drive outperformance in the rapidly changing world of crypto investing. Don’t miss this great conversation! 

Highlights from this week’s conversation include:

• Diego’s Background and Path to Venture (1:17)
• Early Crypto Interest and Latin American Perspective (3:34)
• Equity Research Skills in Venture Investing (5:55)
• Founding Dissent Capital: Inspiration and Strategy (9:17)
• Concentration vs. Diversification in Crypto Funds (11:52)
• Cyclicality and Deployment in Crypto Venture (13:16)
• Identifying and Selecting Emerging Managers (15:23)
• Why “Access Is Not a Strategy” (19:33)
• Common Mistakes in Crypto Fund Structures (22:50)
• How LPs Should Assess Crypto Venture Risk/Reward (26:09)
• Competition at Early Stages in Crypto vs. Traditional VC (29:52)
• Crypto Trends: Stablecoins, AI, and On-Chain Identity (31:21)
• LP Archetypes and Strategic Investors (36:34)
• Lessons Learned: Narrative-Driven Markets and Distributions (39:50)
• Connecting with Diego and Parting Thoughts (41:54)

Dissent Capital is a pioneering crypto venture fund of funds focused on backing the next generation of emerging crypto managers. With a disciplined, high-conviction approach to early-stage investing, Dissent Capital delivers institutional-grade diligence and access to the best opportunities in the space. Learn more at www.dissentcap.xyz.

Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of the world’s most innovative companies and investors. SVB provides commercial and private banking to individuals and companies in the technology, life science and healthcare, private equity, venture capital and premium wine industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB’s parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com.

Swimming with Allocators is a podcast that dives into the intriguing world of Venture Capital from an LP (Limited Partner) perspective. Hosts Alexa Binns and Earnest Sweat are seasoned professionals who have donned various hats in the VC ecosystem. Each episode, we explore where the future opportunities lie in the VC landscape with insights from top LPs on their investment strategies and industry experts shedding light on emerging trends and technologies. 

The information provided on this podcast does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this podcast are for general informational purposes only.

Quote 1: "In crypto, access is no longer a strategy, and beta plays don’t cut it. To capture power-law outcomes, you need focused portfolio construction and a specialization mindset, not over-diversification."