Multicoin Cofounders: How can LP's choose from crypto funds?
Tushar Jain, Multicoin Capital
0x711, BlockBeats
Here's a paraphrase from Tushar Jain, co-founder and managing partner of Multicoin Capital, on personal social media platforms, translated by BlockBeats:
Given the proliferation of crypto funds, I'd like to share some of my thoughts on how LPs evaluates GPs.
1、 许多投资人对任何项目都趋之若鹜，就好像他们在为营销而做 logo 收集，而不是在追求最大化回报。
The next time an investor tells you about a great project,Don't forget to ask him what percentage of his portfolio this project represents.
2. Excess returns come from going against the trend and being right,It is not easy to form opinions and opinions based on first principles.
If you see a good project in an investor's portfolio,Try to assess whether they are making first-principles decisions or just following suit.
3. How cautious is GP about fund size? What is their methodology?
4、大多数投资人对待交易就像他们刷 Tinder 一样随意。交易热度会左右他们的投资决策。
The deal heat has nothing to do with investment returns, as the valuations of hot deals are high. Strict rules should be set for investment decisionsTrading discipline.
5. Investors should know what game they are playing, who else is playing it, and what their strengths are. Looking for GP with in-depth knowledge of capital market dynamics.
6. Most importantly, be sure to compare the fund's past returns to the market Beta. Have you been able to outperform the fund (net of fees) in the mobile crypto market over the same investment period?
Don't pay performance fees for Beta returns in the market!
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