In This Article:
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How was the idea of Coefficient Ventures born?
I came to the United States in 2016 to do Venture Capital. I was exploring the opportunities in different verticals by doing Angel investing in the Silicon Valley. The first vertical I was investing in is Artificial Intelligence. But I realize it’s not demoralized, only a few people who have the strong academic background have the opportunity to create something from the current technology, and the Capital market also dominated by the top tier VC firms and tech giants like Google or Facebook. I like things that more democratized, not only accessible to the few people. Then I started to look at blockchain space in Jan at 2017, right before of the crypto bull market. I started to invest in tokens and ICOs. I am so excited about the democratized investing opportunities that ICOs and tokens bring to the common people. It’s the first time people in every country of the world have the same opportunities as the Venture Capitalist in Valley to invest in ICOs. I believe it’s the future of investing and financial system. I think I have found the next big thing that I want to do in my next few years after I exited from my first startup in China in 2015. Then I launched Coefficient Ventures in September 2017, it’s a crypto fund investing exclusively in blockchain ecosystem globally. We want to build an influential crypto fund to accelerate the process of democratizing the old financial system and build a new world that never exists before. We have made more than 25 investments so far, including Filecoin, Raiden, Zeppelin, Thunder, Nucypher, Tari, Urbit, Tomochain etc, and the capital made more than 20X returns at the peak in less than 6 months.
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Can you explain the common people about your product?
Coefficient Ventures is a crypto fund, which our capital is holding in crypto assets instead of USD such as Bitcoin, Ethereum, and other altcoins, focusing on investing in blockchain vertical projects and startups. We allocate 80% of capital in tokens and ICOs and 20% of capital in equity of blockchain company worldwide. Compared with traditional VC firms, we are more demoralized and community driven, we have more than 500 community members worldwide to support us in terms of deal sourcing, due diligence, and doing post-investing service for our portfolios.
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As the company is carrying out ICO, what has already been done and what are you going to create on the money collected by the ICO?
We haven’t done ICO, so our current money is not from the ICO. But we do have future plans to launch an ICO for an experiment fund, it’s still in stealth mode. We think we should explore more deeply in the token structure and new governance of a fund. I was intrigued by the vision of democratizing the current financial system and decided to all in the blockchain. But because of regulatory issues of different countries, most of the projects canceled their public ICOs and not accepting any money from the common people. We are back where we are before, the top tier VC firms got the top deal flows and made the money, leaves almost no room for the common people. That’s not what the ICO was born to be. We have the mission that we want to all the people in the world should have the same opportunity in this new technology wave, not just people in the Silicon Valley.