BullPerks is proud to present our groundbreaking research paper, "Decentralized Venture Capital: Traditional vs Crypto Venture Capital." This paper explores the world of decentralized funding and its impact on future investment models.

1. Decentralized
VentureCapital
Traditional vs Crypto Venture Capital Research Paper
BullPerks
July 2023

2. Contents

3. ExecutiveSummary
Disclaimer

4. VentureCapitalFundsandtheSuccess
RateofTheirInvestments
2nd
Round
411
40%
232
23%
3rd
Round
90
9%
4th
Round
34
3%
5th
Round
9
1%
6th
Round
1,027
SeedBacked
TechCos
M&AExit 127(12%)
489(48%)
60(6%)
119(12%)
31(3%)
111(11%)
Dead/Self-sustaining
6(1%)
50(5%)
1(<1%)
22(2%)
Source: CBInsights

5. VC Fund Return on Investment
Return: less than 1x 50%
Return: 1 - 2x 35%
Return: 2 - 3x 10%
Return: more than 3x 5%
35%
50%
5%
10%
Source: CBInsights
Crypto VC deal activity by segment in Q1 2023*
Access
$956.5
18
Blockchain
networks
13
$325.7
DeFi
9
$39.6
Infrastructure &
developer tools
13
$289.3
Web3
17
$224.2
Deal value (SM) Deal count * As of March 31, 2023
Source: Geography Global PitchBook

6. DecentralizedVentureCapital
Investing:BenefitsComparedto
TraditionalVCInvestingModels
Accesstoinvestmentoptionsforretailinvestors
Eliminationofgeographicalrestrictions
Buildingacommunityofearlyadopters

7. Transparencyofinvestmentprocess
Benefitsoftokenization
InvestinginWeb3:Analysis
andProspects

8. Valueofventurecapital,privateequity,andM&Ainvestmentsmade
inblockchainandcryptocurrencyworldwidefrom2018toH12022
40
35
30
25
20
15
10
5
0
2018
8.2
2019
5.3
2020
5.7
2021
32.1
H1 2022
14.2
Value
in
billion
U.S.
dollars
Source: Statista
Globalventurecapitalinvestmentincryptocurrency
andblockchaincompanies
30
Billion,
$
25
20
15
10
5
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*
* Through Nov. 24, 2021
Source: New York Times

9. VentureCapitalInvestmentPerMonthin2022
$8B
$6B
$4B
$2B
0
$5.90
Jan
$4.63
Feb
$4.15
Mar
$6.83
Apr
$4.34
May
$3.50
Jun
$1.98
Jul
$1.36
Aug Sep
$1.64
Source: Cointelegraph research VC Database
CryptoVCdealactivitybyquarter
$12
$10
$8
$6
$4
$2
$0
1000
900
800
700
600
500
400
300
200
100
0
Q1 Q2 Q3 Q4
2018 2019 2020 2021 2022 2023*
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Deal value (SM) Deal count * As of March 31, 2023
Source: Geography Global PitchBook

10. CryptoVCdealactivity
2017
$2.2
474
2018
$2.2
2019
$2.7
2020 2021 2022
1,184
941 930
2,570
2,786
353
2023*
$25.1
$28.2
$2.6
$3.5
Deal value (SM) Deal count * As of March 31, 2023
Source: Geography Global PitchBook
ReasonstoInvestinWeb3and
Blockchain
Historically positive records on ROI

11. BlockchainPrivateEquityHasOutperformedTraditionalPrivateEquity
SinceInceptionoftheFundIRR2013-2022
CA US Private Equity Index CA US Venture Capital Index CA Ex-US PE & VC Index
Blockchain Capital CoinFund Fund
2500%
300%
50%
25%
0%
-25%
12%
18% 18%
2503%
Fund
I
14% 24%
12%
4%
24%
10% 14%
11%
-5%
332%
Fund
II
2015 2016 2017 2018
Source: Cambridge Associates LLC, Blockchain Capital LLC, CoinFund LLC
BlockchainPrivateEquityHasOutperformedTraditional
PrivateEquityAcross1-,3-,and5-YearHorizons
80%
60%
40%
20%
0%
26%
20%
13%
19%
16%
17%
21%
15% 16% 18%
12% 12%
0.4% 1.9% 8.3%
65%
79%
62%
CA US Venture
Capital Index
CA US Private
Equity Index
CA Ex-US Developed
Markets Private
Equity & VC
CA Empering
Markets Private
Equity & VC
Russel 2000
Index
Blockchain
Capital Fund I
1-Year 2-Year 3-Year
Source: Cambridge Associates LLC, Blockchain Capital LLC, CoinFund LLC

12. Potentialinthelongterm
BlockchainVCStillMakesUpLessThan1%ofGlobalVCMarket
$350B
$300B
$250B
$200B
$150B
$100B
$50B
$0B
2.0%
1.8%
1.6%
1.4%
1.2%
1.0%
0.8%
0.6%
0.4%
0.2%
0%
2012 2013 2014 2015 2016 2017 2018 2019 2020
TraditionalVCs BlockchainVC MarketShare
Total
Invested
Per
Year
Globally
Source: Crunchbase News, Blockchain Capital
Lowcorrelationwiththetraditionalassetclasses

13. Crypto, Passive and Active Equity and Bonds: Correlation Heat Map
1.0
0.75
-1.00
0.50
0.25
0.00
-0.25
-0.50
-0.75
0.79
0.81
0.52
0.51
0.41
0.41
0.
11
0.
13
0.81
0.58
0.56
0.4
0.4
0.
11
0.
15
0.57
0.58
0.35
0.34
0.
15
0.
12
0.46
0.39
0.39
0.09
0.09
0.23
0.23
0.08
0.09
0.98
0.24
0.34
0.24
0.35 0.
18
BTC
ETH
LTC
ADA
XRP
Passive
Equity
Active
Equity
Passive
Bond
Active
Bond
BTC
ETH
LTC
ADA
XRP
Passive
Equity
Active
Equity
Passive
Bond
Active
Bond
Source: CFA Institute
Crypto and Commodities: Correlation Heat Map
1.0
0.75
-1.00
0.50
0.25
0.00
-0.25
-0.50
-0.75
0.79
0.81
0.52
0.51
0.
15
0.26
-0.03
0.
11
0.21
0.81
0.58
0.56
0.
14
0.23
0.01
0.07
0.2
0.57
0.58
0.
15
0.24
-0.02
0.
1
0.
18
0.46
0.09
0.
16
-0.02
0.06
0.
1
0.06
0.
16
-0.04
0.08
0.
12
0.77
-0.01
0.02
0.39
-0.01
0.06
0.45
-0.01
0.01
-0.01
0.24
BTC
ETH
LTC
ADA
XRP
Gold
Silver
Gas
Oil
BCOM
BTC ETH LTC ADA XRP Gold Silver Gas Oil BCOM
Source: Federal Reserve Bank of St. Louis and US Federal Reserve Economic Data (FRED)

14. The liquidity level is higher than in the traditional venture
capital investment model
Realistic:5losers,3small,1medium,1large
$1,200
$1,000
$800
$600
$400
$200
$0
$6 $6 $6
$50
$250
1 2 3 4 5 6 7 8 9 10
Exit Return
Source: Techcrunch

15. Availability for retail investors
Exhibit1:IndividualInvestor’sShareofU.S.Equities
TradingVolumebyYear
25%
20%
15%
10%
5%
0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 21
Source: Bloomberg Intelligence

16. T
ypes of Decentralized VC Investing
Investment pools, syndicates, and DAOs: differences
and similarities

17. Launchpads
1 DAO Maker DAO $ 1.41 250 $ 352.5 34.6 10.00% $ 5,352.50 $ 17,300.00 $ 21,447.50
2 TrustSwap SWAP $ 0.22 4,000 $ 880.00 22.1 5.00% $ 5,880.00 $ 5,525.00 $ 8,939.00
3 GameFi GAFI $ 7.6 20 $ 152.0 49.46 5.00% $ 5,152.00 $ 12,365.00 $ 16,963.50
4 BullStarter BLP $ 0.06 1,500 $ 90.00 39.27 50.00% $ 5,090.00 $ 98,175.00 $ 100,585.00
5 Polkastarter POLS $ 0.37 250 $ 92.50 34.5 10.00% $ 5,092.50 $ 17,250.00 $ 21,657.50
6 BSCPad BSCPAD $ 0.14 1,000 $ 140.00 36 10.00% $ 5,140.00 $ 18,000.00 $ 22,360.00
7 PAID Network PAID $ 0.02 1,000 $ 18.40 25.4 10.00% $ 5,018.40 $ 12,700.00 $ 17,181.60
8 TrustPad TPAD $ 0.10 3,000 $ 303.00 18.47 20.00% $ 5,303.00 $ 18,470.00 $ 22,167.00
9 Red Kite PKF $ 0.11 500 $ 52.50 37 10.00% $ 5,052.50 $ 18,500.00 $ 22,947.50
10 Seedify SFUND $1.09 250 $ 272.50 29.42 12.00% $ 5,272.50 $ 17,652.00 $ 21,779.50
# Launchpad Token Price Tokens for entry Cost of entry ATH ROI Chance to enter deal Costs ROI Profit
Source: Сryptorank

18. GameFi 58 4,781.6%
BulllStarter 47 3,927.3%
Solanium 34 3,615.6%
BSCPad 69 3,606%
RedKite 76 3,522.3%
Polkastarter 104 3,450.3%
DAOMaker 116 3,267.6%
ChainBoost 21 3,254.6%
LaunchZone 22 2,859.4%
Seedify 60 2,813.8%
Gamestarter 38 2,685.3%
PAIDNetwork 83 2,540.1%
IDOplatforms IDOs PriceReturn
Conclusion

19. ResearchNoteAuthors