Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

DCG Founder Summit 2018 - Opening Remarks

3,052 views

Published on

On Oct 15, 2018, Digital Currency Group hosted its fourth annual Founders Summit - a "Sun Valley style" conference that brought together over 125 of the world's leading blockchain and bitcoin entrepreneurs. Hosted at the Ritz Carlton in Lake Tahoe, attendees participated in three days of exclusive, off-the-record networking, dialogue sessions, presentations and panels. As we have done in previous DCG Summits (before the event was private to the public), we are sharing our opening remarks, which were presented by DCG's founder and CEO, Barry Silbert, our VP of Investments, Travis Scher, and Director of Development, Casey Taylor.

Published in: Technology
  • My brother found Custom Writing Service ⇒ www.WritePaper.info ⇐ and ordered a couple of works. Their customer service is outstanding, never left a query unanswered.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Hi there! I just wanted to share a list of sites that helped me a lot during my studies: .................................................................................................................................... www.EssayWrite.best - Write an essay .................................................................................................................................... www.LitReview.xyz - Summary of books .................................................................................................................................... www.Coursework.best - Online coursework .................................................................................................................................... www.Dissertations.me - proquest dissertations .................................................................................................................................... www.ReMovie.club - Movies reviews .................................................................................................................................... www.WebSlides.vip - Best powerpoint presentations .................................................................................................................................... www.WritePaper.info - Write a research paper .................................................................................................................................... www.EddyHelp.com - Homework help online .................................................................................................................................... www.MyResumeHelp.net - Professional resume writing service .................................................................................................................................. www.HelpWriting.net - Help with writing any papers ......................................................................................................................................... Save so as not to lose
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • You can hardly find a student who enjoys writing a college papers. Among all the other tasks they get assigned in college, writing essays is one of the most difficult assignments. Fortunately for students, there are many offers nowadays which help to make this process easier. The best service which can help you is ⇒ www.HelpWriting.net ⇐
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

DCG Founder Summit 2018 - Opening Remarks

  1. 1. DCG Founder Summit 2018 Lake Tahoe | Oct 15 - 17
  2. 2. Welcome and Year-In Review Barry Silbert, Founder & CEO
  3. 3. Learn, connect, and have fun Why we’re here • This is our 4th annual summit! • It’s an opportunity for you all to take a step back and think about the future • The goal of this summit is to help our portfolio companies connect the dots: we want you to get to know the other leading companies building this industry • Unlike previous summits, this one is for founders and execs only (no more of those pesky investors!). No press
  4. 4. Who is here 12 DCG (and subsidiary) team members Representation from 15 countries 4 members of the DCG board and investment committee A handful of industry VIPs and other interesting people 100+ founders and executives from 70+ DCG portfolio companies
  5. 5. New portfolio additions since our last summit (25) Tagomi Nickl
  6. 6. DCG and subsidiary representatives Travis Scher VP of Investments Mark Murphy VP of Public Affairs Casey Taylor Director of Development Barry Silbert Founder and CEO Simi Wurtzel, VP of Finance Jigar Shah Assistant Controller Larry Sukernik Investment Analyst Christiane Shaw, Executive Assistant Michael Sonnenshein Managing Director, Grayscale Michael Moro, CEO, Genesis Trading Martin Garcia, Managing Director, Genesis Trading Kevin Worth, CEO, CoinDesk
  7. 7. Representatives from DCG Board & Investment Committee Jim Robinson RRE Ventures Lawrence Lenihan Resonance Matt Turck FirstMark Capital Glenn Hutchins North Island
  8. 8. Our mission It is our mission to accelerate the development of a better financial system We do this by building and supporting digital currency and blockchain companies and leveraging our insights, network, and access to capital Digital Currency Projects Blockchain Startups Network, Insights, & Capital
  9. 9. How we’re structured Subsidiaries Investment Portfolio Digital Currencies
  10. 10. We’re not a VC fund • Flexibility C-Corp structure provides us with: • Potential to take DCG public • Ability to raise money from strategic investors • Permanent capital
  11. 11. Our Subsidiaries
  12. 12. Genesis • Large-block OTC trade execution across multiple digital currencies • Institutional digital asset lending solutions for hedging, speculating and working capital • Authorized participant and marketing agent for all Grayscale products About Genesis • Billions of dollars of OTC transaction volume • Awarded the 5th BitLicense by the New York Department of Financial Services • Partnership with Square as private OTC back-end trading channel • Launched institutional digital asset lending business in March 2018 • Originated over $500M in new loans to hedge funds and trading firms since launch 2018 Accomplishments • Provide working loans in digital assets and fiat to help scale businesses • OTC liquidity provider across all assets • Electronic market-making capabilities to participate on more exchanges How We Can Help
  13. 13. Grayscale • World’s largest digital currency asset management business with $1.5B+ in assets under management • Sponsors a family of nine investment products, allowing investors to gain exposure to digital currency through traditional investment structures • Products include BTC, BCH, ETC, ETH, LTC, XRP, ZEC, and ZEN, as well as the Digital Large Cap Fund About Grayscale • Raised $330 million in new assets into the Grayscale family of products year to date • Launched four new products this year 2018 Accomplishments • Helping companies that need assistance with liquidity and sourcing • Assistance with evaluating custody solutions • Connections to businesses and individuals within our network How We Can Help
  14. 14. CoinDesk • Leading media brand for the Blockchain tech and crypto sectors. • Host of Consensus, the annual gathering for the industry as well as co-host of Blockchain Week with NYC. Other Consensus events include Invest and Singapore. • Publisher of primary research and data including State of Blockchain quarterly report. About CoinDesk • Over 8,000 attending Consensus 2018 with representatives from over 70 countries • Launched Consensus in Singapore to highlight important tech projects in Asia • Launched CoinDesk Korea • Expanded staff including now over 20 journalists covering the sector • Launched several media product extensions including podcasts, newsletters, videos, and technical analysis 2018 Accomplishments • Want to hear about your projects that are advancing the industry (give us the news - ideally first!) • Partnership opportunities for Consensus/Blockchain Week 2019 - how can we help you grow? • Remember to use your DCG family discount codes to attend all our events! How We Can Help
  15. 15. DCG…by the numbers * As of June 30, 2018 Digital asset portfolio value: $260 million • Also hold (<5% in aggregate): Basis, Bitcoin Cash, CENTRE, Civic, Colu, Dirt, Ethereum, Filecoin, Handshake, Hedera Hashgraph, Litecoin, Livepeer, Logos, Madhive, Ocean, Reserve, Stacks, XRP • Largest holdings (~95% in aggregate): Bitcoin, Ethereum Classic, Zcash, Horizen, Decentraland • IRR: ~57% • Most valuable investments: Bitso, BitPay, Circle, Coinbase, Ripple • Largest investments: Circle, Coinbase, Ledger, Luno, Ripple Portfolio value: $90 million (plus $15 million in exits) Investments made to date: 128 companies Total assets: $500 million Revenue from subsidiaries: $65 million (thru 6/30) Team size: 9
  16. 16. Some observations • It’s happening • In a major milestone for the industry, Nouriel Roubini brought together the entire industry in its hatred of him • …but not so much around the world (India needs our help) • Fantastic organization on the policy front in the U.S. (Coin Center + Blockchain Association)… • Enterprise blockchain is still kind of a thing, kind of • Non-fungible tokens, or NFTs, will be an interesting area for product and business model experimentation – especially in gaming • Next up, security token offerings. I’m skeptical, but hopeful • Rescission rights being triggered • SEC subpoenas going out left and right • ICOs are dead • Crypto tribalism at all time high • 2018 has been great for the industry (less so for the first time crypto buyer)
  17. 17. Looking forward to 2019 • IPOs and reverse mergers start • Acquisitions picking up. Is consolidation next? • The big, late stage money investors are starting to sniff around • Monster rounds at healthy valuations • Battle for stable coins has begun; a USD-backed Tether killer first to emerge • Rising interest rates, strengthening US Dollar and stock market weakness is setting the stage for some real economic pain around the world. How will the crypto asset class react? • Increased focus (good and bad) – and interest – in privacy coins • SEC is keeping everybody guessing re ETFs • Here comes Wall Street…Goldman, Fidelity, TD, ICE leading the charge • Qualified custody solutions are arriving • Bottom line -> 2019 is going to be huge for crypto
  18. 18. Portfolio and Industry Trends Travis Scher, VP of Investments
  19. 19. Our investing strategy • Target 2-5% ownership at seed stage (invest up to $250k) • Focus on strategic life cycle investments (invest up to another $500k in Series A, and another $1 mm in Series B) • Join syndicates with other professional investors • Minimize conflicts of interest; no board seats How we invest
  20. 20. Portfolio of 109 active companies – breakdown by sector Portfolio breakdown by sector (excluding exits) • We’ve invested most heavily into infrastructure companies (i.e., exchanges, new blockchains, scaling tech, data & analytics, compliance). • We have slowed down our pace in enterprise blockchain and payments – we’ve already backed the best ones! • We’ve backed a bunch of gaming/NFT and stablecoin projects – we believe mainstream adoption may begin there. 20 14 15 12 9 8 6 3 1 1 21 17 15 12 10 9 11 7 4 3 Exchange Netw orkInfrastructure Enterprise Blockchain Paym ents W allets/Custody Identityand Com pliance OtherTradingTools Gam ing Stablecoins 2017 2018
  21. 21. Portfolio – breakdown by geography North America (65%) v.s. 54% in 2017 Europe (17%) v.s. 21% Asia (7%) v.s. 13% Africa (2%) v.s. 3% South America (5%) v.s. 7% Australia (1%) v.s. 1% MENA (4%) v.s. 2% Portfolio breakdown by continent • The DCG portfolio represents businesses in 24 countries. • Of the 25 companies we’ve added since last year’s summit, 8 are in the Bay Area and 8 are in New York. • U.S.-based companies now represent 65% of the portfolio – there has been a re- centralization in Silicon Valley and NY.
  22. 22. Portfolio – breakdown by stage Portfolio breakdown by stage • The number of seed stage companies in our portfolio has remained flat; our investment pace tracks the speed at which our portfolio companies are graduating to later stages. • Our portfolio companies are graduating: there are 16 more Series A or later companies than last year. • Still, only ~15% of out portfolio companies have reached the Series B stage. 47 29 8 3 51 39 12 5 Seed Series A Series B Series C+ 2017 2018
  23. 23. Portfolio – fundraising and token sales Fundraising breakdown (excluding exits) • Our 109 active portfolio companies have raised $2.2bn in equity capital (not counting Coinbase’s reported $500mm round). • 24 of our portfolio companies have completed a token sale and raised a combined $900mm. • Only 6 companies in our active portfolio are planning a future token sale. $2,185,770,000 $898,480,000 Equity Token Average: $22.5mm Median: $5mm Average: $44.9mm Median: $25mm
  24. 24. What founders should be focused on • Regulatory pressures are growing (double-down on compliance, learn politics, and/or diversify geographically) • There are tons of recycled ideas…learn lessons from your predecessors • Consider focusing on the “institutional” market (we expect this to fuel growth in 2019) • Prepare for inevitable industry consolidation and an uptick in M&A (are you a buyer or seller?) • Be ready for a long crypto winter…just in case • Use cases! Without real applications, this incredible movement will stall Think about…
  25. 25. And what founders shouldn’t be focused on • Treasury management (convert to cash…you’re not a hedge fund!) • How much money your competition has raised (they’re probably spending it too fast) • Jealously guarding your plans (transparency correlates with success) • Personal brand building (twitter followers =/ product-market fit) • Big ICO’s (the market for new tokens is dead) • The “consensus”- you’re here because you’re visionaries, ignore the noise and think for yourselves! Don’t think too much about…
  26. 26. Development Updates Casey Taylor, Director of Development
  27. 27. The DCG network CORPORATES ACADEMICS INVESTORS REGULATORS ADVOCACY GROUPS START-UPS Invested in 130 companies that have revenue, traction, and institutional investors Co-invested alongside over 1,000 investors; pipeline for early company deal flow Engage with hundreds of corporates around the world to provide insights and exposure Collaborate with the world’s leading academic institutions to support research and development Work with institutions to educate, advocate, and drive adoption for social good Consulted by regulators and policymakers DCG is the most prolific and best-networked investor in the blockchain space
  28. 28. The DCG development function What you want What we offer Press and PR Press dinners, bespoke press platform, reporter intro’s Industry insights Call us anytime :) Partnerships & BD Cross-portfolio collaboration (this summit!) Investor introductions Thousands of investor introductions made to date Regulatory guidance Blockchain Association and connections to key folks Hiring DCG jobs board & candidate rec’s
  29. 29. Sponsors – thank you!
  30. 30. Thank you

×