THE LAST FOUNDATION BRICK HAS JUST BEEN LAID FOR DIGITAL ASSETS

Blockchain Coinvestors Newsletter

Vol. 4, No. 3, January 2022

THE LAST FOUNDATION BRICK HAS JUST BEEN LAID FOR DIGITAL ASSETS

Something very important just happened.

Finally, the Governors of the Federal Reserve system of the United States have published their long awaited paper on the future of money and payments. 

For those of you who regularly read our newsletters the punch line will be familiar. The Governors not only expect our future to rely upon digital money and payments, but they give compelling reasons for why this is a very good thing for all stakeholders. Without stealing their thunder, the authors believe that digital money and payments will bring significant benefits including:

  • Safely Meet Future Needs and Demands for Payment Services

  • Improvements to Cross-Border Payments

  • Support the Dollar’s International Role

  • Financial Inclusion

  • Extend Public Access to Safe Central Bank Money

Yes there are risks too and many strategic, operational, and regulatory complexities to be sorted out, however, with this report seven governor's hats have been thrown into the ring.

We really hope you will read the report, and we are providing a link so that all you need to do is click and download it. 

We don't want to appear smug, however, the Governors have essentially come around to agreeing with the themes and suggestions that we have held during the last several years of our writings and newsletters regarding the Fifth Era, the shift to digital monies and assets, and the central position that blockchain will hold in that transformation. You can read more within the pages of our 2019 book Blockchain Competitive Advantage if you have not already done so.

This report is the last foundation brick in the global support for digital money and payments. Most of Europe, many Asian countries and of course China (which already has its national digital yuan in place) among others have already published their equivalent reports.

But the United States is the key foundation brick and now it is laid.

This is a very good thing for our investment thesis, and for all early stage investors in the infrastructure companies that are building our future today.

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 9th 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.

Digital Assets Week is coming to California: March 22nd and 23rd in San Francisco, and March 25th in Palo Alto. The focus over the 3 days is on digital security, digital assets, and institutional crypto. We invite you to join Matthew Le Merle at the event to learn from the sector's most experienced leaders. We will have a limited number of passes available for our investors on a first come, first served basis. If you are interested in attending, please email ir@blockchaincoinvestors.com.

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:

Institutional Investors - Making the Case for Blockchain

- February 7th, 7:00am PST

Investing in Early Stage Tokens

- February 28th, 7:00am PST

- February 28th, 12:00pm PST

8 Blockchain Investment Themes

- March 14th, 7:00am PST

- March 14th, 12:00pm PST


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

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