VersionOne Ventures' Early Crypto Bet Yields 10-20x Returns Despite Initial LP Pushback

Vancouver, BC – VersionOne Ventures, an early-stage venture capital firm, has seen its early investment in cryptocurrency funds yield significant returns, reportedly between 10 to 20 times the initial investment, despite initial skepticism from its limited partners (LPs). This success highlights the firm's strategy of backing "mission-driven founders who are early in new areas," a philosophy that is now extending to its recent focus on India.

Boris Wertz, founder and General Partner at VersionOne Ventures, recently stated on social media, "Good sign that you are onto something as a VC: getting push back by LP's on a specific strategy." He cited the firm's experience with crypto in 2016/17 and, more recently, with its India strategy. Wertz explained that VersionOne ventured into crypto investments early, around 2016, a period when "most people didn’t really believe in crypto."

The firm's crypto portfolio includes notable early investments in companies such as Coinbase and Uniswap, which have since become multi-billion dollar entities. This demonstrates VersionOne's ability to identify and commit to emerging sectors before they gain mainstream acceptance. Wertz noted that LPs tend to be conservative, preferring established track records and larger funds, which can make it challenging for them to embrace novel or smaller-scale investment strategies.

VersionOne Ventures is now applying a similar contrarian approach to the Indian market, having begun backing emerging fund managers there within the last 12 to 15 months. Wertz views India as analogous to "China two decades ago," citing its growing population, expanding middle class, and a "reverse brain drain" of talent returning to the country. He perceives a "lack of capital in a certain segment" of the Indian market, particularly at the seed stage, presenting a unique opportunity for early-stage investors like VersionOne.

The firm has already invested in five Indian emerging managers, including Beta Capital, BoldCap, Grayscale, Shiva in 1947, and Iseed. This move underscores VersionOne's commitment to exploring new frontiers and supporting founders in markets that may be overlooked by more traditional capital sources, continuing its pattern of making bold bets that, as seen with crypto, can lead to substantial returns.