Copying the investment strategies of top performing crypto VCs - Discover what coins top crypto investors are buying

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They say imitation is the ultimate form of flattery. It is also a good way to make money.

Most of the top investors publish their investment portfolios. From Warren Buffet’s Berkshire Hathaway to some of the top ranked crypto funds.

The only problem is, most of us choose to ignore this valuable information mostly to our own detriment.

The stocks and coins which venture capital firms invest in are generally publicly available. The problem is most of us don’t have the time and or inclination to go searching. Today we are handing this invaluable information to you on a silver encrusted plater.

Replicating the returns of leading VCs

It makes sense that if you invest in the same crypto projects as the best performing crypto investors then you should enjoy similar returns.

It can also be an effective way to avoid the dark side of crypto. Hunting amongst the small and micro caps for that elusive moonshot is a dangerous and ultra high risk activity littered with fraud, bad actors and incompetent operators.

Caveats

There are a few caveats however. First, remember past performance is no reflection of the future. Just because a VC holds Axie Infinity for example doesn’t mean you are going to enjoy the same level of returns particularly as many well connected VCs jumped in at the beginning. It’s all about timing.

Secondly many VCs hold a portfolio of investments, this may be difficult to replicate if your resources are limited.

Finally, just because a fund has performed well in the past doesn’t guarantee future out performance. You don’t need to look very far to see examples of this. Take Cathie Wood’s ARK Innovation ETF. It surged more than 152% in 2020, beating the Nasdaq's 43.6% return. But the ARKK ETF sharply underperformed the Nasdaq in 2021 finishing down 24% compared to the Nasdaq's 21.4% advance. That underperformance continued into 2022 with the ARKK ETF down 28.6% through March 3.

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How it works

Saying all that, replicating the most successful crypto VCs investment strategies is still a powerful tool.

We selected the top performing crypto VCs in the industry. VCs such as Hashed who turned $700,000 into $4 billion in 5 years, Draper Associates, run by the influential Tim Draper an early investor in Hotmail, Skype, Tesla and Bitcoin and MultiCoin Capital, who boasts one of the best performances in history.

We analyzed the top performing VC portfolios and from them selected only their token and coin investments which are tradable on public exchanges. Some of the investments made by these VCs are into blockchain related startup corporations meaning there is no way for the investing public to participate. However we did come across some very exciting investments. A few of these are well known to the crypto community and won’t come as a surprise, but there were many others.

Space and attention constrained we did have to perform a level of selection as many VCs had extensive portfolios. We would suggest taking a deeper dive into a few of these to check out what we missed.

We have begun by summarizing some of the most common tokens/coins held by the top crypto VCs. We then provided a snapshot of the portfolios for each VC we examined.

Conduct your own due diligence

We recommend you conduct your own due diligence before investing. Don’t just invest blindly but know that these are quality projects/investments backed by the best in the industry. VCs are canny operators, by following their portfolios you should be able to identify promising sectors early and understand how VCs see the crypto world developing. This should help you with your own investment decisions whether or not you invest in the same projects these VCs are invested in.

Another handy technique is to follow these VCs and see what the latest coins/tokens they have invested in. There will undoubtedly be some price action on the back of their investment but this usually drops back after a short time and is a great source of investment ideas.

Spreading your risk

We would suggest investing in a small portfolio of these investments which you can add to your existing crypto portfolio subject to only investing risk capital.

Remember this is crypto. VCs have a high risk tolerance. Many of these investments may well be worth billions of dollars but they are still high risk.

It has been described as one of the most invaluable resources in the world of altcoin investing. We couldn’t agree more. Download your free Micro Cap Watch List from our website here and receive it in your inbox every Friday.

Most popular cryptocurrencies amongst top crypto VCs

Bitcoin

Ethereum

Maker

Terra, Luna

The Graph

Handshake, HNS

THORChain

Coin98

Avalanche

ROSE, OASIS

NEAR Protocol

Zilliqa

Keep Network

COMP

Arweave

Filecoin

The Top Crypto VCs

Pantera

Pantera Capital was founded by former Tiger Management Head of Macro Trading and CFO Dan Morehead. Pantera’s global macro strategy invested over $1 billion of institutional allocations. In 2013, Pantera created the first blockchain hedge and venture funds in the United States.

Bitcoin

Matic, Polygon

Ethereum

Fantom

Polkadot

Solana

MKR, Maker

Terra, Luna

YFI

Aave

NEAR Protocol

MKR

UNI

COMP

Draper Associates

The Draper Associates team is based in Silicon Valley and invests in companies around the world.

Tim Draper started Draper Associates in 1985.

Draper Associates has become a leader in early-stage venture capital having funded companies including Hotmail, Skype, Baidu, Tesla, SpaceX, Twitch, Cruise, Carta, Webflow, Robinhood, and Coinbase. Draper Associates continues to innovate in providing capital to technology companies of all sizes and all geographies.

Bitcoin

Ethereum

MKR

Fair

HNS

PRO, Propy

Multicoin Capital

Multicoin Capital is a thesis-driven investment firm that invests in cryptocurrencies, tokens, and blockchain companies reshaping trillion-dollar markets. They manage a hedge fund and a venture fund, investing across both public and private markets.

Coin98

Solana

Audius

Helium

Near

Thorchain

The Graph

Keep

Eden

Arweave

1Confirmation

Founded by Nick Tomaino and backed by individuals like Peter Thiel, Marc Andreessen, and Mark Cuban and institutions like Horsley Bridge and Runa Capital, 1Confirmation is a venture fund that supports exceptional founders fuelling the decentralization of the web and society.

Bitcoin

Ethereum

Polkadot

DYDX

ATOM

MKR

RLY

KAR, Karura

GAMMA

ROSE, OASIS

Paradigm

Paradigm is an investment firm focused on supporting great crypto/Web3 companies and protocols of tomorrow. Their approach is flexible, long term, multi-stage, and global. They often get involved at the earliest stages of formation and support their portfolio with additional capital over time.

Atom

DYDX

MKR, Maker

SNX

FBG Capital

FBG Capital is a digital asset management firm. The firm invests in blockchain companies. The firm was founded by Vincent Zhou in 2015, in Beijing, Beijing, China.

FBG Capital has made a total of twenty-nine investments and has raised $8 million for FTX Exchange. Investing in companies that are an early-stage venture opportunity is attractive to FBG Capital. The firm is interested in digital asset management, and has helped raise amounts from $3 million to $30 million, for companies such as OKGold, bloXroute Labs, and FTX.

Zilliqa

Equilibrium

Ampleforth

Bonafide

A16z

Founded in 2009 by Marc Andreessen and Ben Horowitz, Andreessen Horowitz (known as "a16z") is a venture capital firm in Silicon Valley, California, that backs bold entrepreneurs building the future through technology. They are stage agnostic: investing in seed to late-stage technology companies, across the consumer, enterprise, bio+healthcare, crypto, and fintech spaces. a16z has $28.2B in assets under management across multiple funds, including the $3.1B Crypto fund.

Avalanche AVAX

Uniswap UNi

Filecoin Fil

Maker MKR

Celo

Arweave AR

Oasis Network ROSE

Compound COMP

Keep Network KEEP

Handshake HNS

MetaStable Capital

MetaStable Capital is a cryptocurrency asset hedge fund that is headquartered in San Francisco,

California and was founded in September 2014 by Naval Ravikant, Josh Seims, and Lucas Ryan. Metastable Capital offers two funds called the Metastable Balanced and MetaStable Edge. The MetaStable Balanced fund takes a broad approach and invests in a wide range of underlying technical protocols underlying cryptocurrencies, and the MetaStable Edge fund offers investors an opportunity to take several positions in specific altcoins.

Avalanche AVAX

Kadena

Swarm

Thunder token

Hashed

VC firm Hashed was founded in 2017 when a group of founders and engineers from South Korea pooled $700,000. Fast-forward five years and more than 500 investments later, and the Hashed treasury now totals over $4 billion and it is still 100% owned by the firm.

Crypto gaming is one of the main pillars of Hashed’s investment thesis, serving as the focal point of a $200 million fund announced in December. While Hashed is actively investing in the emerging Web3 gaming ecosystem, their ambitions don't stop there.

Klaytn, KLAY

Link

ICP

CHAI

Vega

Anchor

InsurAce

Pundi X

Decentraland

Axie Infinity

The Sandbox

MediBloc

TomoChain

Dapp.com

Kambria