The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Should Large Crypto Funds Give Money Back to LPs | What Will the Next Generation of Crypto Funds Look Like | What Should Happen with FTX; Who Should be Held to Account | The Future of NFTs & What Happens to Opensea w/ Nick Tomaino @ 1confirmation

Oct 30, 2023

Nick Tomaino, Founder and General Partner at 1confirmation, dives into the complex world of crypto investment. He discusses whether large crypto funds should be returning money to their LPs and the size of the next generation of funds. Tomaino sheds light on the misconceptions surrounding FTX and SBF, exploring who truly should be held accountable. He also reflects on the revolutionary potential of NFTs and their impact on the creator economy, backed by his successful investments in platforms like OpenSea.

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ANECDOTE

Phishing Attack

Nick Tomaino lost all his Bitcoin savings to a phishing attack before Coinbase had 2FA.
He used this setback as motivation to improve and not give up on crypto.

INSIGHT

Crypto VC Token Deals

Crypto VCs often use token deals to generate hype and dump on retail investors.
This practice, while potentially legal, raises ethical concerns and erodes trust.

ADVICE

Transparency in Venture

Venture capitalists should publish their returns transparently to shift focus from fund size.
This promotes accountability and a focus on actual performance rather than prestige.

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Nick Tomaino is the Founder and General Partner @ 1confirmation, one of the leading seed firms fueling the decentralization of the web and society. The fund started with $26M in backing from individuals including Peter Thiel and Mark Cuban and it has been reported that the firm now has over $1B in assets under management. Nick has led seed investments in OpenSea, dYdX, SuperRare, Polkadot and Cosmos among others. Prior to 1confirmation, Nick was a Principal @ Runa Capital and before that led business development and marketing at Coinbase in the early days of the company.

In Today's Episode with Nick Tomaino We Discuss:

From Cryptokitties to founding the Leading Seed Crypto Firm:

How did Nick first come into contact with crypto and bitcoin specifically?
How did getting fired from Coinbase catalyse his move into venture?
What does Nick know today that he wishes he had known when he started investing?

2. The Landscape Today: Funds and SBF

Are the current generation of crypto funds too large? Should they give money back to their LPs?
Will the next generation of crypto funds be smaller? Are any crypto funds able to raise right now?
Why does crypto Twitter hate crypto VCs? Who are the worst VCs for pump and dump?

3. SBF & FTX: What Actually Happened, Who is to Blame, What Happens from here?

What is the biggest misconception on SBF and FTX today?
Who should be held accountable? What else would Nick like to see?
How should FTX change the way that LPs invest into venture managers?

4. How to Build the Best Crypto Portfolio in Venture:

How large are the funds? How does Nick determine the right size for a fund?
How many investments does Nick make per fund? How do loss rates look in crypto?
What have been Nick's biggest investment hits and losses? How did that impact his mindset?

5. The Future for NFTs and Opensea:

Why does Nick remain bullish on the future of NFTs?
How is Nick able to remain optimistic about the future of Opensea given their volumes?
Where does Nick believe the fair price for Opensea should be today?
Did Nick sell their Opensea at the $13Bn round?