Investor Dan Tapiero Rolls Out $200M Growth Fund for Late-Stage Crypto & Digital Asset Firms
- Dan Tapiero's 10T Holdings has committed $200 million into late-stage digital asset startups.
- The investor has been a huge fan of Bitcoin for a long time, championing it over gold.
It's another day and another big-name investor testing the waters as they look to cash in on the hype surrounding cryptocurrencies. This time, the big-name investor is Dan Tapiero, the founder of private equity fund 10T Holdings.
Helping Companies to Grow
This week, 10T Holdings filed a Notice of Exempt Offering of Securities with the Securities and Exchange Commission (SEC), revealing plans to invest $200 million into crypto and blockchain firms. As the filing explained, the fund is looking to invest in mid-to-late stage crypto and digital asset companies, helping them scale and optimize their operations.
The growth fund plans to invest in about 10 to 15 mid-to late-stage cryptocurrency companies with an enterprise value of $400 million and above. This precludes seed-stage companies. By focusing on larger companies, Tapiero's fund will focus on a market that is particularly appealing for a large pool of capital. The filing shows 10T has sold $124 million out of the fund, leaving a total of $76 million left.
A first of its kind, the 10T fund plans to invest at least $20 million into these companies, capturing an enterprise value of at least $400 million in the coming years.
The filing added that there wouldn't be any consideration for seed-stage firms, as Tapiero and his partners are looking to avoid the risk of funding companies that won't be able to scale. By focusing on later-stage firms, 10T hopes to avoid volatile returns.
Legendary investor Tapiero is no stranger to the cryptocurrency market. In November, he told Bitcoin analyst and hedge fund manager Anthony Pompliano about his company's investment appetite with crypto companies. The investor called names like top crypto exchange Kraken, blockchain-based FinTech development firm Figure Technologies, and stablecoin issuer Paxos.
Tapieros’ Bitcoin Fandom
Tapiero has long been a fan of alternative assets, having helped found Gold Bullion International, an institution-focused platform for precious physical metals. So, it's not ironic that he has a soft spot for Bitcoin. In an interview with AlphaWeek in 2019, the legendary investor explained that Bitcoin had done enough to show that it is a serious investment asset.
As Tapiero explained at the time, the leading cryptocurrency should first be referred to as a nifty invention. However, skeptical investors should look at Bitcoin's longevity as a testament to its viability.
Tapiero has also been one of the most vocal about the current wave of institutional crypto investment. In a tweet from last year, the investor pointed out that the increased entry of firms like Grayscale Investments and MicroStrategy, which have both shown an incredible proclivity for amassing Bitcoin, would destroy short-sellers. Eventually, the shortage of Bitcoin could cause the asset's value to balloon to an insane value.
Tapiero told Pompliano in the interview that Bitcoin would eventually eclipse gold.
He argues that the comparisons between both assets are quite wrong, primarily because Bitcoin is a much bigger concept than the latter. In part, Tapiero claimed that while Bitcoin is an entire network, gold only acts as a store of value.
So far, there have been signs of this phenomenon happening. Increased activity from institutions has caused a significant shortage, with miners now scrambling to fill up the glut in supply.