Announcing Room40 Ventures

The Next Wave

We believe this is just the beginning.

Decentralized crypto protocols are in the first inning of adoption with profound implications for democratizing financial products and enabling new ownership models for the internet. As the dust settles from a euphoric period of experimentation, the validation of crypto is clear: blockchain protocols have proven their potential, creating a trillion dollars of value in the process.

The next trillion of value creation requires new crypto adopters to participate in open networks powering modern financial rails, personalized commerce, resilient infrastructure, and more. With each new use case comes builders unfamiliar with crypto-focused programming languages, and new stakeholders unfamiliar with seed phrases and digital governance. To welcome this next wave, the ecosystem will look for ways to unlock frictionless user experiences and drive verticalization. New bridges will need to be built, not only between blockchains, but also between on-chain protocols and their off-chain counterparts.

A New Model

Differing from the typical technology adoption curve, crypto protocols take a different path of going from private to public markets. Crypto protocols use tokens to enable stakeholders — users, builders, and investors — to accrue ownership and governance commensurate with their roles in growing the network. Jumpstarting these network effects results in earlier liquidity for tokens, which often debut in public markets within 2 years of founding compared to 10 years for equity-funded startups. This means that in addition to the typical course of scaling early stage startups, protocol founders must also assume the roles of effective token allocation (tokenomics) to drive network growth, and productive engagement with public market participants.

This paradigm demands a new playbook for how firms invest and partner with crypto-native startups. An investment firm purpose-built for crypto requires expertise in (1) capital markets, to identify investment opportunities across stage and liquidity and help founders navigate public markets; (2) tokenomics, to align participant incentives for sustainable network growth and governance, and (3) bridging web2 and web3 (bi-directionally), as on- and off-chain organizations converge in domains like finance, commerce, and beyond.

Introducing Room40

Our team consists of builders and investors with experience across the lifecycle of technology firms and financial markets. Our ventures team has worked closely with founders from pre-idea (and pre-token launch) to post-IPO, deploying billions of capital in the process. Our liquid team is armed with institutional experience at top-tier hedge funds, as well as crypto-native experience as early community members of blue chip crypto protocols.

Join Us

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