Draper Associates taking long odds on extraordinary outcomes

Web 3.0 is going ahead full steam, with cryptocurrency and blockchain projects being seeded on a daily basis. Entrepreneurs and investors are looking out and making deals to build the ventures that can solve as many problems as possible, at scale in the coming few decades. The blockchain represents a fundamental evolution with regards to how new applications will be built and defined around viable use cases. Using incentives in the right way via digital tokens ensures that every user’s objectives is aligned with the network’s own.

Bitcoin represents the most successful blockchain network so far, since it does one thing really well – transferring value without any centralized intermediary. This was not possible before since the way the centralized financial system has been setup; money and value have often found themselves being taken ‘in-charge’ by decision-makers who guard the system rather than the people who wish to transfer and build value with each other via the system and have not been able to in the way they potentially can. This is what the blockchain will change. A fundamentally new way to create value.

Today, at Venture Mirror, we had the opportunity to speak to Tim Draper, a legend in the Venture Capital world, currently in the market, fresh with its Crypto fund that’s looking to back the founders who can go and on and represent the true premise of Web 3.0. Below are the excerpts from our interaction

Tell us a bit about your crypto fund. When did you first think that crypto will be a good space to invest in?

I was interested in digital currency as early as 2004. I bought into Bitcoin and CoinLab in 2011.

A lot of VC firms are aggressively getting into the crypto space. In the past, this was not the norm. What do you think is the reason for this change?

They may believe, as I do, that bitcoin is the future of all commerce, banking, and retail.

As an investor in the crypto industry what do you think are the biggest opportunities (in terms of industry)?

Many are probably undiscovered, but I think that this changes banking the most, also insurance, commerce, government; and with smart contracts, it simplifies legal and accounting.

ICOs back then and IDOs now. Do you think that one day VCs might become obsolete in this space?

I think everyone becomes obsolete eventually. I do believe that the investor and the entrepreneur are moving closer together. That squeezes the VC somewhat. But if returns continue to be the best in the financial industry, VC will continue to be a thing.h

What do you look for in a crypto startup before you invest in it? Are these the same parameters like team, product-market fit, idea etc, like how it is for non-blockchain startups?

Yes, I look for the same things. Big market opportunity, uniqueness, strong technical team, inspirational founder…

At what stage of a startup’s journey do you invest in?

From the beginning. And then again when they hit near unicorn status.

As a crypto startup what will be the best way to pitch you?

If there is a token, there has to be a clear use for the token, where there is an incentive for customers to buy it in the open market. I would also suggest that the entrepreneur show his love for the customer, and his unique knowledge in the new industry. Practice telling people about the business before pitching me can help.



About Author