A PICTURE TELLS A THOUSAND WORDS IN INVESTMENT PERFORMANCE

Blockchain Coinvestors Newsletter

Vol. 3, No. 26, December 2021

We are now fast approaching the end of 2021. As we do so we are pulling together our '2021 Wrap Up' which we invite you to join us for either the 7:00am PST or 12:00pm PST webinar broadcast:

Blockchain Coinvestors 2021 Wrap-Up

- December 20th, 7:00am PST

- December 20th, 12:00pm PST

For early stage investors, and for blockchain specifically, there has been an enormous amount of change in 2021, and we expect even more in 2022.  

As we wrote in our book about investing into the Fifth Era some years ago "The Internet didn’t even exist 30 years ago, and now billions of people are connected to the web every day, and remarkable new technologies have been invented that will dramatically change the way humans exist on our planet. This emerging playing field is not well understood and not everyone who was successful in the past will be able to benefit from this momentous shift."

We invite you to read the opening section of the book for free by clicking here. 

Back then we were looking into the future, and while we were absolutely convinced that we were living through the greatest value and wealth creation the world has ever seen, we knew that for many the proof would be in the pudding, as we English say.  So it is exciting for us to be able to visit Pitchbook and see the Q2 peer group analysis of other early stage venture capital fund of funds. 

Most of them are demonstrating exceptional performance as early stage technology investing continues to be among the highest performing asset classes in the world. Meanwhile, the transition to digital monies and digital assets is accelerating and we are seeing the dynamics we laid out in our book Blockchain Competitive Advantage come to pass. We can't help but be excited that by focusing on early stage blockchain investing, we are seeing even higher levels of performance at Blockchain Coinvestors.

We hope you agree with another old English homily. A picture tells a thousand words.

Thank you for reading.

Alison Davis
Matthew C. Le Merle

ABOUT BLOCKCHAIN COINVESTORS

Launched in 2014, our goal is to provide broad coverage of the emerging unicorns and fastest growth blockchain companies and crypto projects. The strategy is now in its 8th year and has to date invested in more than 30 pure play blockchain venture funds in the Americas, Asia and Europe; and in a combined portfolio of 300+ blockchain and crypto projects including 30+ blockchain unicorns. Our funds rank in the top decile amongst all funds in their respective categories on both Pitchbook and Preqin. Headquartered in San Francisco with a presence in Grand Cayman, London, New York, Zug and Zurich, the alternative investment management firm was co-founded by Alison Davis and Matthew Le Merle. 

FUND PERFORMANCE

Blockchain Coinvestors Funds are continuing to generate strong returns. As of Q2 2021 our funds rank in the top decile amongst all funds in their respective categories on both Pitchbook and Preqin with Net IRR exceeding 60% for Funds I and II. This remarkable performance results from powerful tailwinds driving the world towards a future in which digital monies and digital assets are ubiquitous and the businesses and projects providing blockchain and crypto products, services, and infrastructure benefit disproportionately.

BLOCKCHAIN COINVESTORS FUNDS

Blockchain Coinvestors’ goals are to provide broad coverage of the emerging unicorns and fastest growth blockchain companies and to capture superior returns from investing in the leading blockchain venture partnerships:

  • Fund III is open only to investors who meet the Qualified Purchaser definition with a minimum subscription of $250,000.

    • A “qualified purchaser” is an individual or a family-owned business that owns $5 million or more in investments. The term “investments” shouldn't include a primary residence or any property used for business.

  • Fund III Parallel is open to investors who meet the Qualified Client definition with a minimum subscription level of $250,000 at the discretion of the Manager. Please contact ir@blockchaincoinvestors.com if the minimum is of concern.

    • Currently, an individual or entity is a qualified client if he, she, or it: (i) has a net worth of $2,200,000 prior to investment in the fund (excluding the value of his or her primary residence).

While the two funds are substantially the same, there may be some funds and investments that are only available in the Qualified Purchaser vehicle. Blockchain Coinvestors funds can take investments via IRAs. We support several providers, including AlgoIRA, Kingdom Trust, Millennium Trust Company and Pacific Premier Trust Company (Pensco).

Blockchain Coinvestors has launched an Early Stage Token Fund that is open to investors who meet the Qualified Client definition with a minimum subscription level of $250,000 at the discretion of the Manager. This Fund expects to have access to early stage tokenized projects that few others can access through its relationships with other leading blockchain investors. The Fund will target 20 to 30 SAFTs as well as positions in traded tokens when excess capital is on hand. This is a continuation of the direct token investing strategy of the Fund Manager that has included private stage investments in Acala, Filecoin, NEAR, Polkadot, Structure, and others.

Please visit the Blockchain Coinvestors website to learn more about our offerings. You can also reach our Investor Relations team directly at ir@blockchaincoinvestors.com.

BLOCKCHAIN COINVESTORS SWISS

We are excited to announce that Blockchain Coinvestors Funds are now available through Swiss certificates for those of our non-US investors who prefer this approach. The underlying fund is the same, however, our Zurich based team at Blockchain Coinvestors Swiss, who will introduce in future weeks, can provide detailed information regarding this investment option. Email us at mlemerle@fifthera.com to learn more.

LINQTO
'Private Investing Made Simple'

While our funds are only available to Accredited Investors who are also Qualified Clients we believe in the democratization of investment access to all investors and look forward to that day. In the interim, we have partnered with Linqto which is an easy to use Mobile and Web app that makes it exceptionally easy to invest into attractive opportunities. The provide access to Accredited not Qualified Client investors as well as much lower minimums. Go to Linqto.com or download the app from your App store to use this approach.

BLOCKCHAIN COINVESTORS ANGELLIST SYNDICATE

Continuing the theme of the democratization of investing, we have a rapidly growing Blockchain Coinvestors syndicate on AngelList providing access to selected coinvestments. Please join us and our partner Lou Kerner on AngelList.

Click here to receive the insightful weekly crypto newsletter and webinar invitations from our Blockchain Coinvestors partner Lou Kerner.

REGISTER NOW FOR UPCOMING WEBINARS AND CALLS

Our investment team hosts bi-monthly webinars and calls to help educate our community about the Fifth Era, fintech, blockchain and crypto. We discuss important trends, tailwinds and investment themes including what we have learned and how we are using our knowledge to inform our own investment thesis and actions. Below is a list of upcoming webinars for which you can register by clicking the links:

Blockchain Coinvestors 2021 Wrap-Up

- December 20th, 7:00am PST

- December 20th, 12:00pm PST

Options for Investing in Blockchain & Crypto

- January 10th, 7:00am PST

- January 10th, 12:00pm PST

Blockchain Coinvestors Investment Thesis

- January 24th, 7:00am PST

- January 24th, 12:00pm PST


Recordings of past webinars and calls can be found at www.blockchaincoinvestors.com/webinars.

RECENT PRESS

"The best way to invest in Blockchain businesses"

Matthew Le Merle