With many crypto funds flourishing, a new collaboration has been recently announced, that of Sequoia Capital’s partner, Matt Huang and Co-founder of Coinbase, Fred Ehrsam. Both Huang and Ehrsam have made it clear that will be leaving their previous positions at well-established firms, with the latter still serving as part of Coinbase’s board of directors.
According to the Wall Street Journal, Huang will be leaving his post after having contributed four years of his time at Sequoia Capital, a venture capital.
— Brian Armstrong (@brian_armstrong) June 1, 2018
The decision supposedly has not disrupted their relationship, as another partner at Sequoia, Alfred Lin stated that, “Matt will remain a good friend of Sequoia and we wish him great success.” It also has been confirmed that Sequoia will also be contributing in Huang’s new crypto fund. As for his termination, everything will be finalized by the end of June.
Huang seems excited with the new challenges he will be accepting. He also expressed his passion for the entirety of blockchain, as well as future investment possibilities by stating,
“Once you spend enough time in the area, there’s enough real substance coming to the forefront and strong legitimate teams working on interesting problems that I think it is a really promising space for investing.”
Huang’s partner, Ehrsam made the announcement last year that he will be leaving his main position at Coinbase but will still be contributing through its board of directors. As for the duo, it is believed that both individuals have sound experience dealing with cryptos and understanding the how-to’s in an in-depth manner. Hence, making this partnership one to look out for.
Will Crypto Funds Excel Over Time?
Venture Capitals (VCs) are known for their search for the next big technology out there, analyzing specs like potential growth, annual revenues and the associated risks. However, upon hearing about blockchain technology and cryptocurrencies, many VCs were hesitant in making the first move. Today, over 50 Crypto funds exist, with more in the process of launching.
According to Lex Sokolin, Global Director of Fintech Strategy at Autonomous Research LLP, “10% of then-operating cryptocurrency funds could cease operations by the end of 2018.” This comes of no surprise as the cryptocurrency market has and continues to experience increased volatility – making it extremely hard to make any future predictions about any token that might strive or succeed in the near future.
Will crypto funds succeed regardless of their current stagnated trends?