IOBC Capital Partner: European and American funds are squeezing the survival space of Asian funds, and IR will become increasingly important
ChainCatcher news, IOBC Capital partner Alva Xu shared his insights on Token2049 on the X platform, noting several changes in the Crypto primary market from the perspective of an active Crypto LP:
Some large funds from Europe and the United States are accelerating their fundraising efforts, and their commitment and focus indicate their determination to compete fiercely with Asian LPs. The conversation afterward was not exciting; AUM is the enemy of venture capital funds.
European and American funds are squeezing the survival space of Asian funds, and LPs are becoming as valuable as quality developers, so IR will become increasingly important in the future.
In today's market shift, some GPs are showcasing various strategies, such as buying OTC shares, pushing into the secondary market, and incubating projects. The core purpose is to prove they can outperform Bitcoin returns, and isn't the essence of venture capital to support great companies early on? Therefore, these flashy strategies might be less effective than returning to the original mission, which can resonate more with investors.
In light of the current situation, this LP offered three suggestions for fund fundraising:
Do not emphasize financial returns and DPI, as LPs can directly buy ETFs or hold BTC.
Position yourself as an explorer in the industry; a strong desire for exploration and having your own worldview can better impress LPs, after all, investing in a company represents the kind of world you want to build.
Conduct due diligence on each LP's strategic planning; understanding LPs' strategic investment layout is very important.
