Fund Flow Developing a Technology Investment Strategy With Aly Madhavji of Blockchain Founders Fund
The blockchain sector is perhaps one of the riskiest to invest in today. Not only is it a new and constantly evolving space, but it’s also often riddled with scams. Many large investors remain skeptical, but it’s likely that the future lies in blockchain and crypto.
So how can funds do it safer and smarter, especially as emerging managers? We bring in leading tech entrepreneur and blockchain investor Aly Madhavji to tell us how. Recognized as a “Blockchain 100” global leader by LATTICE80, Aly is an internationally recognized author, speaker, and managing partner at Blockchain Founders Fund, which he launched in 2017.
His success is linked to Blockchain Founders Fund’s goal to be “the most transparent fund in the world.” In fact, all of the fund’s LPs have real-time access to every deal the fund makes. That might sound terrifying, but in the blockchain world, transparency is crucial.
“We think that this is incredibly important when you think about how important partnerships and collaborations are in this space, and being able to tap into world-class expertise to work with our companies,” said Aly.
That type of differentiation — and the associated risks — are necessary for success.
“The way that this industry is evolving and changing, oftentimes, some people don't just don't get it right away — what this shift could mean and how it could actually change the landscape of the way a sector could work,” said Aly. “And so we want to be part of being at the cutting edge of driving that change with companies.”
In this episode of Fund Flow, Aly joins host Jon Finger as he shares his secrets and best tips for emerging managers in the blockchain or crypto world.
💡 Featured Guest 💡
Name: Aly Madhavji
What he does: Aly is a managing partner at Blockchain Founders Fund, a Singapore-based venture capital fund focused on blockchain startups. He is also a senior blockchain fellow at INSEAD and the author of three books.
Organization: Blockchain Founders Fund
🗝️ Key Points 🗝️
Top takeaways from this episode
★ Transactions in the blockchain space operate differently. The industry relies and thrives on strong partnerships and collaborations; unlike on Wall Street, blockchain funds are not ultra-competitive. That’s why Aly’s fund aims to be transparent with all of its LPs and notifies them each time a new deal is made. Transparency ultimately leads to greater success.
★ For a constantly evolving market, have an adaptable strategy. For Blockchain Founders Fund, that means doing things differently than most other VCs — responding to cold emails, and focusing on LPs that fill a gap or propose a solution to a problem in the blockchain sector, rather than adopting a narrow strategy.
★ Find what you do best and follow through. There’s a lot of capital available for emerging managers these days, but it’s also crucial to show what makes your fund different from others. Define what that is and prove that you can follow through on those early investments.
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