Blockchain Capital's Spencer Bogart on the Future of Crypto and DeFi
Oct 3, 2023
auto_awesome
Spencer Bogart, partner at Blockchain Capital, shares their investment thesis, including the controversial WorldCoin. They discuss their recent $580 million funding news for two new funds. They also explore the growth of DeFi, the future of Bitcoin, the appeal of digital displays and NFTs, and the challenges of WorldCoin distribution.
Blockchain Capital has announced two new funds totaling $580 million for early-stage and mid-to-late-stage investments in the blockchain industry.
The crypto industry fosters a dynamic environment for innovation, with a mix of failures and game-changing breakthroughs, similar to the early days of the internet.
Blockchain Capital operates venture funds instead of hedge funds to align with their long-term investment strategy and maintain stability during market downturns.
Deep dives
The Genesis of Blockchain Capital
Blockchain Capital was founded a decade ago with the vision that the blockchain industry would expand beyond Bitcoin. To maximize long-term opportunities, they launched a venture firm, even charging no fees or carry for their first fund. This unconventional approach allowed them to build rapport and relationships with early founders and create a network that facilitated collaboration. Now, after 10 years, they have announced two new funds totaling $580 million, focusing on early-stage and mid-to-late-stage investments in the blockchain industry.
The Thrill of Crypto Innovation
The host and guest discuss the excitement of the crypto industry, particularly the pace of innovation and the openness of the space. The ability for anyone to build in the crypto ecosystem fosters a dynamic where numerous people attempt different ideas, leading to a mix of failures and game-changing breakthroughs. The wide range of attempts and experiments in crypto parallels the early days of the internet, and the guest expresses optimism about future growth opportunities due to the enduring nature of innovation in the space.
Venture Funding During Market Cycles
The guest shares insights into the challenges of raising venture funds in the volatile crypto market. Investor appetite tends to fluctuate with market conditions, making it crucial to carefully consider fund structures. Blockchain Capital chooses to operate venture funds, as opposed to hedge funds, to align better with their long-term investment strategy. While investor interest may decline during downturns, having existing limited partners who understand market cycles helps maintain stability. The guest acknowledges the risks of over-leveraging within the industry but emphasizes the importance of strong fundamentals and conviction in the long-term potential of crypto investments.
The future of San Francisco and New York
The podcast discusses the changing dynamics of San Francisco and New York as tech hubs. While San Francisco has traditionally been a hub for startups, the quality of life has deteriorated, prompting a shift in focus towards New York. The guest emphasizes the importance of being near founders and having a productive team, leading to a greater presence in New York.
Progress and optimism in the crypto sector
The podcast highlights the positive developments in the crypto sector. The guest mentions the progress made in scaling solutions, which is crucial for accommodating new users and retaining them. The use of layer 2 solutions, such as Ethereum's L2s, has significantly increased throughput. Additionally, the guest points out the robustness of the DeFi sector, with significant revenue, volume, and loans outstanding, indicating a strong foundation for future growth.
Today we're diving deep into the mind of Spencer Bogart, who is a partner at Blockchain Capital.
Spencer has played a pivotal role in shaping the landscape of decentralized technologies and digital assets over the last decade.
We get into his journey impact in the blockchain sector, their investment thesis around the controversial WorldCoin, how he's continued to thrive among many economic downturns, and we get into their recent news of a $580 million for two new funds.
But first, Spencer tells us about the history of the firm.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode