Daniel Attia

🚨 In an unusual move, venture capital fund Peak XV Partners has reduced the size of its $2.85 billion fund by 16 percent or $465 million, as it looks to deploy capital more judiciously and return uninvested monies to its sponsors or limited partners (LPs), amid a buoyant public market and its rub-off effect on private market valuations. Along with a reduction in fund size, Peak XV has also tweaked its payout for its fund managers or general partners, wherein it will now have a 2/20 compensation structure, with a provision to catch-up on carry to 30 percent, in a move that will bring the investor on par with its industry peers. The change will apply for multistage and growth. The investor earlier had a 2.5/30 compensation structure where 2.5 percent was the annual management fee paid to fund managers for managing assets and 30 percent was the performance fee or carry. Peak XV, one of the largest India-focussed funds, informed its LPs that it decided to voluntarily resize its 2022 fund as Indian public markets have re-rated up and mid-cap P/E multiples have expanded significantly in the last year. This has in turn resulted in high valuations in late stage growth and pre IPO companies. “In such an environment, we are choosing to remain disciplined and will continue to invest cautiously,” the letter said. Examples of funds deciding not to draw down capital fully are far and few. The last India-focussed fund to do so was ChrysCapital, when it decided to cut its fund size by $300 million from the $1.25 billion it closed in 2010, as it found limited opportunities to invest then. Globally, Index Ventures and Sequoia Capital have also reduced their fund sizes in the past. Story with Tushar Goenka

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🎧 Latest pod is out. Bayani Mills is the Secretary & Acting CEO at the Australian Bitcoin Industry Body, providing advocacy on behalf of their Bitcoin industry members and advancing the adoption and understanding of Bitcoin in Australia. We take a deep dive into Bayani’s work with the industry body: educating politicians, making submissions on bills before parliament, and trying to carve out a clear space for Bitcoin in the minds of the public and politicians. Not everybody agrees with the idea of engaging the political leviathan, but as Bayani outlines there can be real consequences to inaction and though Bitcoin functions fine regardless, regressive policy can make life hard for everyday Australians to get started with Bitcoin. Bitcoin Policy UK Bitcoin Policy Institute Satoshi Action Fund https://lnkd.in/g7fUK4j6

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Transforming investments: Goldman Sachs' tokenization projects Goldman Sachs is set to redefine investment strategies with the launch of three tokenization projects in 2024. This bold step by the $1.64 trillion asset manager signifies the growing acceptance and integration of digital assets in traditional finance. Mathew McDermott, Global Head of Digital Assets, expressed the firm's dedication to meeting the evolving needs of clients and exploring new avenues like sub-custody. With industry leaders like BlackRock already seeing significant success in this space, Goldman Sachs' entry further solidifies tokenization as a key player in the future of finance. #DigitalAssets #Tokenization #GoldmanSachs #Blockchain

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Interesting that two of the largest fund raises over the past few weeks are for layer-1 blockchain builders. Berachain announced on Friday that it closed a $100m round led by Framework Ventures and the Abu Dhabi branch of Brevan Howard Digital. Just a few days earlier, Monad Labs announced that it had finalized a $225 million round led by Paradigm. These are big rounds, and the timing and size suggests that venture investors are still betting on engine builders. While I’m sure public-facing applications are also getting some funding, I haven’t seen them get this size of allocation. This is a reminder of how young this industry still is. https://lnkd.in/e2sMFVPv

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Thrilled to announce today that Agora's $AUSD will be rolling out as the first native stablecoin on Injective. Stablecoins have already proven to be a revolutionary innovation in the world of seamless value transfer. An estimated $10.8T worth of transactions settled in stablecoins running on blockchain rails in 2023. Couldn't be more excited to be partnering up with Nick van Eck and his team who are flipping the stablecoin business on its head, and bringing back value to ecosystem's. The assets backing AUSD are fully managed by the $100B asset management firm, VanEck, and custodied by the $4.1T assets under management (AUM) firm, State Street. Each AUSD token aims to be redeemable for $1 US dollar giving users peace of mind when transacting to avoid volatility compared to other more volatile crypto assets. Learn more: https://lnkd.in/eKcipJrJ https://lnkd.in/e_pxW4SB

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With exits remaining scarce, the venture market has experienced a withdrawal of 'cross over' investors in the past two years. This is just one of the many reasons why both the early and growth-stages continue to face challenges when raising capital. As reported today in PitchBook, one such investor has raised a large new fund targeting these markets. From the article: "Adams Street Partners just made a big swing on the asset class. On Monday, the Chicago-based growth and PE buyout firm closed on over $1.2 billion for its Venture Innovation Fund IV Program—a more than 40% jump from its previous venture fund group." Let's hope that more of these are on the way as we finish up the year! Endeavor Colorado Zeb King Tegan Stanbach Kathryn Dickson #privateequity #venturecapital #innovation #entrepreneurship #founders #startups #investors https://lnkd.in/gyv_jFhM

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Why GP Carry Economics for Syndicates are Superior to Venture Funds Sharing #2 of 5 learnings Zachary Ginsburg posted via Last Money In Media yesterday on reflecting back after 500 SPVs completed. 500 SPVs is not a typo :) – “The carry economics are arguably far superior for Syndicate GPs than the carry economics for fund GPs. We previously put out an article discussing the economics of venture, and the reality is that while venture can be the best performing major asset class the returns are skewed to the top funds with the average fund barely returning 1x capital back. There is no major asset class that has dispersion of returns quite as high as venture capital. This underscores the benefits for Syndicate GPs. For one, it means the time to actually receive carry income can be extremely quickly. Despite starting Calm Ventures in 2020, we had one nice exit in 2021 (~10x outcome in 12 months). While the returns from that investment were only ~10% of the capital deployed to that point, we still received carry (over a half million dollars). In a traditional fund if you returned only ~10% of capital back, you would not be seeing a dollar in carry from that sale. To further underscore the GP benefit, as mentioned, around half of funds return <1x DPI. Meaning half of GPs aren’t seeing a dollar in carry from their funds. You can have a <1x fund in SPVs and still receive an enormous amount of carry distributions. To take the extreme case, let’s say we invest $1M each into 100 investments via SPVs over the course of 3 years - so $100M invested total. 99 of those investments go to zero and one 100x’s or returns $100M. While LPs in aggregate didn’t make any money (we received $100M in distributions and invested $100M), the GP actually makes almost $20M dollars (20% carry x $99M in returns on the single performing investment). It’s worth pointing out that while the carry economics are superior, the fee economics are substantially worse for Syndicate GPs, who often aren’t drawing any consistent income or salary.” Link to full post w/4 other key learning in comments. -- Powered by Sydecar and Forge, Last Money In Media is the most actionable venture capital newsletter. Written by Zachary Ginsburg and Alex Pattis, global syndicate leaders with 800+ SPVs closed.

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Sell in May (and we should’ve gone away)? Or a small, overdue pullback on the way to the Banana zone? Ngl, crypto sentiment right now is rough. There is a noticeable fatigue and cynicism in the crypto market, despite higher prices compared to previous years. Fortunately, we're optimistic people. The liquidity cycle will likely continue, “Banana Zone” is still incoming. Take the quiet of the summer to re-evaluate your thesis and (potentially) buy the dips accordingly. Go touch grass a bit this summer and don’t look at the charts. Zoom out. Good luck out there. Want to see all the Crypto Funding Details from June? Deals are still being made, others are still bullish. Check it out here 🫡: https://lnkd.in/gSU5mF_p

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Yesterday's Sporting Crypto Newsletter was our best statistically 𝗲𝘃𝗲𝗿. (McLaren Racing's Web3 Strategy - 2024 Edition) ✉️ 𝟯,𝟲𝟳𝟯 Recipients 💌 𝟱𝟮.𝟵% Open Rate (18 hours from send) 🖱️ ~𝟰.𝟰% Click Through Rate 👥 Opened and shared internally by CEOs, Heads of Departments and Execs at major rights holders, VCs, agencies and Crypto companies. 𝗪𝗲'𝗿𝗲 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 𝘁𝗼 𝘀𝗲𝗲 𝘁𝗵𝗲 𝘂𝗽𝘀𝗶𝗱𝗲 𝗼𝗳 𝗺𝗼𝘃𝗶𝗻𝗴 𝘁𝗼 beehiiv 🐝 • 𝗦𝗲𝗴𝗺𝗲𝗻𝘁𝗶𝗻𝗴 𝗕𝗼𝘂𝗻𝗰𝗲𝗱 𝗲𝗺𝗮𝗶𝗹𝘀: Being a B2B newsletter, when people move jobs they no longer have access to that email. This means we have higher deliverability + Open Rate    • 𝗦𝗲𝗴𝗺𝗲𝗻𝘁𝗶𝗻𝗴 𝗽𝗲𝗼𝗽𝗹𝗲 𝘄𝗵𝗼 𝗰𝗹𝗶𝗰𝗸 𝗼𝗻 𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗹𝗶𝗻𝗸𝘀 (𝗝𝗼𝗯 𝗕𝗼𝗮𝗿𝗱/𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵): Our ability to offer catered solutions to people consistently landing on our Job Board + Research site has increased.    • 𝗕𝗲𝘁𝘁𝗲𝗿 𝗮𝘁𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗺𝗼𝗿𝗲 𝗴𝗿𝗮𝗻𝘂𝗹𝗮𝗿 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗼𝗳 𝗮𝘂𝗱𝗶𝗲𝗻𝗰𝗲: We are now starting to figure out where our new readers are coming from and better yet, which ones are the most high-value and We have also started segmenting geographies so we know where to host events in the future... 𝗢𝘂𝗿 𝘀𝘁𝗮𝘁𝗶𝘀𝘁𝗶𝗰𝘀 𝗶𝗻 𝗘𝗻𝗴𝗹𝗶𝘀𝗵-𝘀𝗽𝗲𝗮𝗸𝗶𝗻𝗴 𝗰𝗼𝘂𝗻𝘁𝗿𝗶𝗲𝘀 𝗮𝗿𝗲 🔥 ❄️ Canada: 𝟳𝟮.𝟰% Open Rate, 𝟰.𝟱% Click Through Rate 🦘 Australia: 𝟲𝟴% Open Rate, 𝟰.𝟬% Click Through Rate 🎡 UK: 𝟲𝟬.𝟲% Open Rate, 𝟲.𝟯% Click Through Rate 🏈 US: 𝟱𝟱.𝟴% Open Rate, 𝟱.𝟵% Click Through Rate *** (Dm or comment if you'd like to work with us, we have some great opportunities for the rest of 2024)

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With the anticipated change in oversight of crypto, I've been speculating where the opportunities are.... The tokenization of real-world assets (RWAs) is emerging as a prominent trend, drawing substantial institutional interest and investment. This movement has fueled forecasts of explosive growth in the RWA sector, with estimates ranging from $4 trillion to $30 trillion in market size by 2030.... thoughts? Note: In $18 million deal, nearly one-fifth of St. Regis Aspen sells through digital tokens. 🔗 https://lnkd.in/g8ygPWMc #crypto #tokenization

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Blackstone is close to reaching a deal to buy Australian data center operator AirTrunk in what would be one of the year's biggest digital infrastructure tie-ups, Bloomberg reports. Acquiring consortium would have to pay $13.5 billion, including debt. AirTrunk, which is owned by Macquarie Group and Canada's Public Sector Pension Investment Board, operates data centers in Australia, Singapore, Hong Kong, Japan and Malaysia. The agreement could be reached as soon as this week. What happens if customers of AirTrunk, post-acquisition, migrate to AWS, Microsoft and Google?

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Continuing my review of all things thought on tokenization - this is a thought piece from Fenwick that was published yesterday. https://lnkd.in/gqMhyhFG It is a good overview of the market so far and the options for registration statements. But what it misses is that a significant number of STOs/RWA tokens have been issued under Reg D as private placements (even if the PPM is 100+ pages) - and that certain states like Wyoming and Delaware have adopted specific legislation on tokenized securities, but mostly no one thinks that's necessary more a nice to have. Plus private markets are 5-10X the size of public (registered) markets depending on how you want to look at it. #digitalassets #blockchain #sto #rwa

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👉 FIT21 🚨 BREAKING: House to consider the Financial Innovation and Technology for the 21st Century Act. #FIT21 will deliver robust consumer protections and regulatory clarity for digital asset markets. https://lnkd.in/dyTwG6mr ~~~ #finance #web3 #FED #investors #interestrates #crypto #inflation #startups #stocks #wallstreet #IPOs #QT #VCs #bitcoin #Ethereum #ETFs

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Australian Securities Exchange has given the green light for #BitcoinETF listing - a first for the country. Australia's investors can now access Bitcoin more easily through traditional investment channels. With clearer regulatory frameworks, we're witnessing Bitcoin ETFs go mainstream globally. So which market do you think will be next to approve a Bitcoin ETF? UK, India, or Japan?  Read here: https://lnkd.in/gmf267Zt

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🌐 A global survey by London-based digital asset investment firm Nickel Digital Asset Management found that 97% of institutional investors believe Bitcoin will reach $100,000, with 20% expecting this milestone within two years, according to Crowdfund Insider. This marks an increase from January when only 75% held this belief. The survey, which included 200 institutional investors and wealth managers from the US, UK, Germany, Switzerland, Singapore, Brazil, and the UAE, also revealed that 98% expect increased investment in altcoins and other digital assets. Additionally, 92% predict Bitcoin will exceed $70,000 by the end of the year, while 96% anticipate Ethereum will surpass $3,700. #BitcoinWorld #CryptoSurvey #InstitutionalInvestors #Bitcoin #Ethereum

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