Crypto advisory firm Reverie has announced the launch of a new $20 million fund that will focus on investing in pre-seed and seed-stage crypto companies. This flagship fund marks a shift for Reverie, which had previously engaged in smaller angel investments. The fund is backed by two unnamed U.S.-based institutional investors. Reverie’s co-founder, Larry Sukernik, stated that the firm plans to be a generalist crypto fund. However, it is currently particularly interested in decentralized social media and security.
Key Takeaway
Reverie, a crypto advisory firm, has launched a $20 million fund to invest in pre-seed and seed-stage crypto companies. The fund aims to support companies that focus on building products that are not purely speculative, emphasizing the importance of addressing consumer demand.
Sukernik emphasized that the fund’s investment philosophy sets it apart from other players in the space. Reverie is looking to support companies that prioritize building products that are not purely speculative in nature. While many investors focus on technical innovations and speculative growth, Reverie believes that it is more important to create products that people want. According to Sukernik, successful companies, such as Apple, Facebook, and Google, have built their success by iterating on product-market fit and addressing the needs of consumers.
Sukernik acknowledges that not all speculative projects are inherently bad, as Reverie has invested in some of the largest exchanges. However, the firm wants to go beyond speculation and identify founders who can create “special products” by leveraging the features of crypto and building sustainable businesses in the long term.
Reverie intentionally set the fund size at $20 million to start small. Sukernik believes that having more money than startups would not be beneficial, as there are currently not many companies being started in the crypto space. The firm’s goal is to prove that a hands-on investor can make a significant impact and contribute to the success of early-stage startups.
Reverie was founded by Larry Sukernik and Derek Hsue, both former investors at Digital Currency Group and Blockchain Capital. They wanted to take a more hands-on approach in helping founders build companies, as they were dissatisfied with the traditional crypto venture model. Many VC firms have large funds with small teams, which limits the amount of time spent with founders. Reverie aims to be a long-term partner for early-stage founders, providing valuable advice and support throughout the startup journey.
While Sukernik acknowledges that the future of Reverie is uncertain, he is confident that the firm will continue to invest in early-stage founders and build lasting partnerships with them, regardless of the challenges ahead.
