It is interesting how many of my favorite Bitcoin podcasters and personalities have moved into (bitcoin) VC investing. VC investing is one of the riskiest and least profitable (on a portfolio basis) methods of investing capital.

One would think if we believe bitcoin is an asset with 50%+ “risk-free” returns it would yield fewer VC efforts, seeing as they don’t make sense at 5% FFR and increasing the hurdle rate would just mean fewer investment theses and VC portfolios would meet the higher return expectations.

But alas…here we are. It seems like this is the way that “bitcoin personalities” are monetizing their niche clout. Very curious to see how these funds turn out and how quickly they start to raise future funds.

(Before I found bitcoin, I truly believed the VC/PE fund model was corrupt and tailored to deliver poor business results due to the (1) requirement to invest and (2) requirement to exit within (3) a defined fund duration. Also, raising money the first time seemed to be the toughest part of the equation…with future funds being easier to raise regardless of prior fund performance. Free(ish) money is lazy money.)