Crypto investment group Pantera Capital has published its year-end summary, detailing everything from the state of the larger market to the performance of its crypto, ICO and venture investments.
— Pantera Capital (@PanteraCapital) December 14, 2018
According to the report, Pantera Venture Fund II’s portfolio value is up nearly 60% through the first 3 quarters of 2018. For comparison, Bitcoin is down 53.3% while the Bitwise 10 Index is down 61.5%. Pantera states that the growth of its venture fund highlights the benefit of equity investments relative to the volatile digital asset market.
Zooming out to Venture Fund II’s full lifespan — sure BTC is up 11.3x compared to VFII’s 3.3x gross TVPI, both of which are strong returns. But venture did it without the roller coaster ride and additional grey hairs… not to mention the decreased likelihood of errant trades based on short term emotions. We believe a diversified portfolio of cryptocurrencies, tokens, and equity is the best approach to gaining exposure to this market. This year has reinforced that strategy.
On the whole, venture capital investments in blockchain and cryptocurrency startups have surged in 2018. Both the median deal size and the number of deals increased as initial coin offerings (ICOs) have collapsed as a viable source of startup capital. According to Pantera, the firm still invests in an ICO “every few months,” but quality offerings have drastically decreased.
Some notable investments from Pantera’s venture fund include ErisX, a new regulated crypto derivatives exchange that is planning to offer digital futures and spot trading, Blockfolio, a popular cryptocurrency portfolio monitoring app, and Harbor, a platform for tokenizing private securities like commercial real estate offerings and investment funds.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.