Key Takeaways
- • Inception Capital, an $80 million crypto venture fund backed by billionaire Bill Ackman, is winding down after founder David Gan went silent in China for over a month beginning in May 2024.
- • Gan, a Forbes 30 under 30 Asia honoree (2019) and former Huobi executive, disclosed that his father—a retired high-ranking Chinese government official from Hubei—was under investigation, prompting his departure to assist with the matter.
- • Limited partners voted during Gan's absence to implement a controlled wind-down of the firm; Gan subsequently agreed to relinquish key operational responsibilities upon his return.
- • The fund, originally launched as OP Crypto in 2021 with $50 million in commitments from marquee LPs including Bill Ackman, Garry Tan, and Alan Howard, had grown to nearly $100 million in assets under management by early 2024 after closing a $30 million fund-of-funds.
- • The firm will continue managing existing holdings but has committed not to deploy the remaining 25% of uninvested capital, effectively halting new investment activity.
Summary
Inception Capital, a cryptocurrency venture fund with approximately $80 million in assets under management and backed by prominent investors including hedge fund billionaire Bill Ackman, is executing a controlled wind-down following the extended absence and subsequent diminished role of founder David Gan. The decision represents a significant setback for what had been a well-capitalized venture operation in the crypto sector.
Gan, who gained prominence as an executive at Huobi, one of the largest cryptocurrency exchanges, earned inclusion on Forbes' 30 under 30 Asia list in 2019. He launched his own venture fund in 2021, originally branded OP Crypto, during peak capital deployment cycles in crypto venture markets. The fund successfully attracted limited partners of institutional caliber, including Ackman's Pershing Square Capital, venture capitalist Garry Tan, and longtime crypto investor Alan Howard, with the fund initially closing at $50 million. The firm subsequently rebranded to Inception Capital and achieved substantial growth, closing a $30 million fund-of-funds in early 2024.
In May 2024, Gan sent an email to limited partners indicating that his father, a retired high-ranking Chinese government official from Hubei province, was under official investigation. Gan announced he would travel to China to assist with the matter. His departure marked the beginning of a communication blackout lasting over one month, during which LPs received no updates on fund operations or strategy.
The extended silence prompted limited partners to vote on a controlled wind-down during Gan's absence. When Gan eventually returned, he agreed to step back from key management responsibilities rather than contest the LP decision. Under the current arrangement, Inception Capital will continue to oversee and manage its existing portfolio holdings but has committed to cease new capital deployment, with approximately 25% of the fund's committed capital remaining uninvested and now undeployed.
Gan, who gained prominence as an executive at Huobi, one of the largest cryptocurrency exchanges, earned inclusion on Forbes' 30 under 30 Asia list in 2019. He launched his own venture fund in 2021, originally branded OP Crypto, during peak capital deployment cycles in crypto venture markets. The fund successfully attracted limited partners of institutional caliber, including Ackman's Pershing Square Capital, venture capitalist Garry Tan, and longtime crypto investor Alan Howard, with the fund initially closing at $50 million. The firm subsequently rebranded to Inception Capital and achieved substantial growth, closing a $30 million fund-of-funds in early 2024.
In May 2024, Gan sent an email to limited partners indicating that his father, a retired high-ranking Chinese government official from Hubei province, was under official investigation. Gan announced he would travel to China to assist with the matter. His departure marked the beginning of a communication blackout lasting over one month, during which LPs received no updates on fund operations or strategy.
The extended silence prompted limited partners to vote on a controlled wind-down during Gan's absence. When Gan eventually returned, he agreed to step back from key management responsibilities rather than contest the LP decision. Under the current arrangement, Inception Capital will continue to oversee and manage its existing portfolio holdings but has committed to cease new capital deployment, with approximately 25% of the fund's committed capital remaining uninvested and now undeployed.
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