Multicoin Capital is sticking with crypto. Spencer Applebaum, the firm’s general partner and co-head of venture capital, said the company manages $2.7 billion in assets and does not plan to broaden its mandate into AI or robotics in the way some firms, including Paradigm, have done. Instead, Multicoin will remain focused on digital assets.
Applebaum also pushed back on the popular “crypto + AI” theme, saying some investors are looking for problems at the intersection of crypto and artificial intelligence that do not actually exist. On the slower pace of capital deployment, he said most seed-stage deals in 2023 carried post-money valuations of about $30 million and raised roughly $3 million, which makes it take longer to put a $422 million fund to work in that part of the market.
He added that the largest position in Multicoin Capital’s hedge fund is HYPE, a token tied to Hyperliquid, and that the position was built entirely through purchases in the public market. According to Applebaum, the firm typically holds publicly traded assets for years.
Multicoin Capital manages $2.7 billion in assets and will stay focused on digital assets rather than expanding into AI and robotics, according to Spencer Applebaum, the firm’s general partner and co-head of venture capital.
Firm keeps its focus on crypto
Applebaum said Multicoin does not plan to follow firms such as Paradigm in widening its investment scope to include AI and robotics.
On the idea of “crypto + AI,” he said some investors are searching for problems at the intersection of crypto and artificial intelligence that do not exist.
Why deployment has slowed
Addressing the slower pace of capital deployment, Applebaum said most seed deals in 2023 had post-money valuations of around $30 million and raised about $3 million. For a $422 million fund, putting money to work in rounds of that size takes longer.
HYPE is the largest hedge fund position
Applebaum also said the largest position in Multicoin Capital’s hedge fund is HYPE, a token related to Hyperliquid. He said the position was acquired through public market purchases, and added that the firm typically holds publicly traded assets for years.
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