Key Takeaways
- • BlockTower Capital, a Connecticut-based crypto hedge fund launched in August, is reportedly launching a venture capital fund with $20 to $25 million to invest in crypto startups, according to people familiar with the matter.
- • The firm has hired Eric Friedman, formerly of Expa and Foursquare, as a partner to head the venture efforts; he joined in April per his LinkedIn profile.
- • BlockTower has been adding former Goldman Sachs staff, including Steve Lee (former portfolio manager and trader) as a director for Asia partnerships and Michael Bucella (former VP) as head of strategic partnerships and business development.
- • Eurekahedge data cited by Business Insider show the Crypto-Currency Hedge Fund Index gained 83.86% in April 2018.
- • BlockTower declined to comment on the new fund, and the report relies on unnamed sources.
Summary
BlockTower Capital, a crypto hedge fund based in Connecticut, is diving into venture capital investing with a new fund, according to people familiar with the matter cited by Business Insider. The fund will devote $20 to $25 million to startups in the crypto space. The firm, which launched in August, is among the best-known crypto hedge funds in a sector that now includes more than 200 funds.
To lead the venture efforts, BlockTower has hired Eric Friedman, formerly of Expa, a California-based investment firm. Friedman joined BlockTower as a partner in April, according to his LinkedIn profile, where he describes his focus as early-stage investing. He previously worked at Foursquare as global senior director of sales and revenue operations and spent time at Union Square Ventures. Axios reported on the new fund and Friedman's hire in April but did not definitively state that he was joining to head it.
BlockTower has been expanding its staff throughout 2018 with hires drawn from Goldman Sachs. Steve Lee, a former portfolio manager and trader at Goldman, joined as a director to strengthen strategic partnerships and business development in Asia. Earlier in the year, the firm hired former Goldman vice president Michael Bucella as head of strategic partnerships and business development.
The move comes amid strong performance in crypto investing. According to research by Eurekahedge cited in the report, the Crypto-Currency Hedge Fund Index gained 83.86% in April. Joe DiPasquale, founder of BitBull Capital, a crypto fund of funds invested in seven firms, told Business Insider that crypto markets are seeing a blend of equity (venture) and token (hedge fund) investing. He noted that investors are drawn to venture-capital-like exposure to new technologies alongside extreme liquidity.
A spokesman for BlockTower declined to answer inquiries about the new fund, so details beyond the sourced figures remain unconfirmed.
To lead the venture efforts, BlockTower has hired Eric Friedman, formerly of Expa, a California-based investment firm. Friedman joined BlockTower as a partner in April, according to his LinkedIn profile, where he describes his focus as early-stage investing. He previously worked at Foursquare as global senior director of sales and revenue operations and spent time at Union Square Ventures. Axios reported on the new fund and Friedman's hire in April but did not definitively state that he was joining to head it.
BlockTower has been expanding its staff throughout 2018 with hires drawn from Goldman Sachs. Steve Lee, a former portfolio manager and trader at Goldman, joined as a director to strengthen strategic partnerships and business development in Asia. Earlier in the year, the firm hired former Goldman vice president Michael Bucella as head of strategic partnerships and business development.
The move comes amid strong performance in crypto investing. According to research by Eurekahedge cited in the report, the Crypto-Currency Hedge Fund Index gained 83.86% in April. Joe DiPasquale, founder of BitBull Capital, a crypto fund of funds invested in seven firms, told Business Insider that crypto markets are seeing a blend of equity (venture) and token (hedge fund) investing. He noted that investors are drawn to venture-capital-like exposure to new technologies alongside extreme liquidity.
A spokesman for BlockTower declined to answer inquiries about the new fund, so details beyond the sourced figures remain unconfirmed.
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