Venrock gives us validation about going long
Venture Capitalists (VC's) and other institutional investors, better known as smart money, are important to the market. Over the last few weeks we received many signals that smart money is going to enter, or already entered, the cryptocurrency market. In an interview with CNBC, David Pakman of Venrock, discussed how Venrock is going to invest in the market. Venrock is a fund under Rockefeller, one of the biggest investment firms in the world.
Most interesting from the interview is that Venrock investigates bitcoin and blockchain since 2013. This shows us that venture capital and smart money is not just getting started, as many people and mainstream media suggests.
Before investing, smart money does a lot of research, to get confirmation what they do is right. The fact smart money is making announcements about ''preparing'' to invest in cryptocurrencies is for us the confirmation, smart money agrees the market is finally mature and the technology is here to stay.
A summary of the interview
Venrock is jumping into the market together with Coinfund. They already did a few investments, but not in specific coins. Venrock focusses on projects that are not mass adopted yet so that Venrock invests before it gets mature. David mentioned Venrock is definitely not in the market for some short-term gains and that most of their investments take 8 years before cashing out. Venrock fund is around 450 million dollars, especially for technical projects. Venrock is not investing in tokens or currencies, but in equity that is going to integrate blockchain technology in (future) possible in combination with a token. This is not a strange, because hedge funds want to have power over a company (equity is a sake in the company). Venrock is interested in protocol projects that provide services, to, for example, decentralized exchanges. Venrock always focusses on good teams that will have the ability to make a project succeed.
Why this is a good validation to us?
When smart money takes a long term position, it is an investment. Investments are all about trust. Taking a long-term position is a confirmation a product or service is here to stay, especially when it is done by smart money.
Scroll to 35:20 to see the interview!