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Linda Xie
@linda
Get asked a lot on advice for starting a crypto fund. Our approach with Scalar that ended up working well - ideal to be a small fund so easier to return multiples. Only a few funds can get away with large AUM & we couldn't compete with them. Small funds enable you to work with everyone - didn’t spend time around building the fund's brand (only did media circuit when we were fundraising). Focused on building a good relationship with founders & got access to deals through word of mouth - prioritized responding quickly to portfolio companies when they needed help. Couldn't always help but most important was to not do harm to them. Always caveated advice given & didn't need to have an opinion on everything - treated founder's time as valuable in a pitch meeting. Came prepared to every fundraising meeting as mentality was we were lucky to be meeting with them - stayed lean as a team, majority of it we operated as 3 people (2 research, 1 ops/finance) Every person/fund is different, just sharing our experience
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Diego
@d1ego
What's your take on early crypto investors doing venture and also having active liquid strategies? IMO, different skillset & time horizon but some managers like the flexibility to act on arbitrage/valuation opportunities between equities/tokens in each cycle. Thoughts?
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Linda Xie
@linda
We did both at Scalar early on but realized over time that venture was the better fit for us to deliver returns. Nice to set up the LP docs to have the flexibility to do what you want as opportunities come up but it is such a different skill set
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Diego
@d1ego
Agreed. Gotcha, thanks. Flexibility is good but can be a distraction
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